AMGA Raises Alarm Over Potential Impact of Proposed Medicaid Cuts on Healthcare Access

Alexandria, VA – Today, AMGA wrote to Congressional leadership regarding the devastating consequences of potential Medicaid funding reductions in the upcoming budget reconciliation package.

“AMGA members are already facing financial strain from years of Medicare cuts. Additional cuts to Medicaid reimbursement will continue to compromise the ability of providers to deliver timely, high-quality care—particularly in rural and underserved areas,” said Jerry Penso, MD, MBA, president and CEO of AMGA.

A recent AMGA member survey revealed widespread concern among medical groups and health systems, as well as the potential for an extensive impact on patient access and care if Medicaid cuts are enacted:

•    85% of those responding would eliminate services for Medicaid patients.
•    51% would limit pediatric care; 47% would reduce maternity services.
•    41% would curtail behavioral health offerings.
•    72% anticipate employee layoffs or furloughs, including frontline clinicians.
•    Nearly 50% of rural facilities expect closure or restructuring.
•    25% would shut down telehealth programs, disproportionately affecting rural patients.

These findings underscore the broader risks to the U.S. healthcare system. With fewer clinics and providers able to accept Medicaid, patients may turn to emergency rooms for routine care, exacerbating overcrowding and driving up costs. These cuts will not exist in a silo and will have sweeping consequences for the entire healthcare system, potentially restricting access for all patients.

“We urge lawmakers to carefully consider the impact of reduced Medicaid funding on patients and communities.  We welcome the opportunity to work with Congress to preserve access, protect our healthcare workforce, and improve outcomes,” Dr. Penso added.

The letter is available on the AMGA website. The survey is also available on the AMGA 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. 

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.