AMGA Opposes Senate Plan to Cut Medicaid

Draft Legislation Shifts Costs to Emergency Rooms

Alexandria, VA – AMGA today urged the Senate to reject draft legislation that cuts close to $1 trillion from Medicaid and eliminates much-need funding for Medicare Part B services. The Senate Finance Committee’s draft bill will result in millions of Medicaid patients losing healthcare coverage and will put untenable stress on an already stretched healthcare system.  

“Patients who are dropped from Medicaid will forgo care until they show up in our already overcrowded and strained emergency departments,” said Jerry Penso, MD, MBA, AMGA president and CEO. “Cuts of this magnitude will only result in fewer services, fewer providers, and the closure of healthcare facilities. This proposal not only will devastate the ability of medical groups and integrated delivery systems to provide care to their Medicaid patients, but also will have far-reaching ramifications beyond the Medicaid population.” 

A recent AMGA member survey underscores the far-reaching consequences of the proposed Medicaid cuts, revealing significant concern among medical groups and health systems:

• 85% of respondents would be forced to eliminate services for Medicaid patients.
• 51% would reduce pediatric care, and 47% would cut maternity services.
• 41% would scale back behavioral health offerings.
• 72% anticipate layoffs or furloughs—including frontline clinicians.
• Nearly 50% of rural facilities foresee closures or restructuring.
• 25% would shut down telehealth programs, disproportionately impacting rural communities.

The Senate Finance Committee proposal also eliminated a House provision which would have addressed ongoing cuts to Medicare Part B payments. “Our medical group and health system physicians have coped with 8% cuts to their physician services the past four years. Eliminating relief for these services only exacerbates the strain on providers,” Penso added.

“This bill increases cuts to Medicaid and lowers payments for Medicare, all while increasing the number of uninsured patients,” said Penso. “Congress should reject this bill.”  

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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. 

AMGA represents medical groups and integrated systems of care. Its diverse membership includes multispecialty medical groups, integrated delivery systems, accountable care organizations, and other entities committed to improving healthcare outcomes. AMGA advocates for the formation of innovative, clinically integrated systems of care that advance population health, enhance patient experience, and reduce healthcare costs. For more information, please visit www.amga.org.