AMGA Calls on HHS to Provide Regulatory Relief Amid Medicaid Cuts

Alexandria, VA – AMGA submitted a letter to the U.S. Department of Health and Human Services (HHS) underscoring the urgent need for regulatory relief, warning that outdated and duplicative administrative rules are compounding the impact of deep cuts to Medicaid.

In comments to the responding to HHS’ “Ensuring Lawful Regulation and Unleashing Innovation to Make American Healthy Again” Request for Information (RFI), AMGA emphasized the need to modernize Medicare’s regulatory framework so that multispecialty medical groups and integrated health systems can continue delivering high-quality, coordinated care.

“The combination of rising administrative burdens and historic federal funding cuts is a recipe for reduced access to care,” said Jerry Penso, MD, MBA, AMGA president and CEO. “We need a regulatory system that supports—not impedes—clinicians' ability to care for their patients.”

AMGA's letter emphasizes that regulatory modernization is no longer optional—it is essential. The recently enacted One Big Beautiful Bill includes nearly $1 trillion in cuts to Medicaid. These policies, combined with growing administrative complexity, are unsustainable for providers.

In its recommendations, AMGA urged HHS and CMS to:

• Curb excessive and inconsistent use of prior authorization that delays necessary care.
• Harmonize quality reporting across CMS programs using AMGA’s Value Measure Set, which focuses on outcomes that matter to patients and reduces unnecessary administrative work.
• Permanently extend telehealth flexibilities to maintain access, especially for rural and underserved communities.
• Streamline and simplify documentation requirements, particularly those related to Durable Medical Equipment (DME), which often duplicate other clinical documentation.
• Eliminate to the extent possible the longstanding Medicare requirement that beneficiaries must have a minimum three-day inpatient hospital stay to qualify for skilled nursing facility (SNF) coverage.

These proposals come as AMGA members report in a recent survey they are being forced to make difficult choices in response to funding cuts:

• 85% would reduce or eliminate services for Medicaid patients.
• Over 70% anticipate layoffs or furloughs, including frontline clinicians.
• Nearly half of rural facilities could close or restructure.
• 25% would shut down telehealth programs.

“Regulatory relief is critical to offsetting the damage from these harmful cuts,” said Penso. “Without immediate action, access to care will deteriorate—not just for Medicaid beneficiaries, but across the entire healthcare system.”

The letter is available on AMGA’s website. 

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About AMGA

AMGA is a trade association leading the transformation of healthcare in America. Representing multispecialty medical groups and integrated systems of care, we advocate, educate, innovate, and empower our members to deliver the next level of high performance health. AMGA is the national voice promoting awareness of our members’ recognized excellence in the delivery of coordinated, high-quality, high-value care. More than 175,000 physicians practice in our member organizations, delivering care to one in three Americans.