AMGA Opposes Medicaid Cuts

Alexandria, VA — AMGA today voiced strong opposition to the more than $700 billion in Medicaid cuts included in pending House legislation. Spending cuts of that magnitude would force AMGA members into an untenable situation, necessitating elimination of services for Medicaid patients, layoffs, and facility closures. 

The House Energy and Commerce Committee’s budget reconciliation legislation would cut $715 billion from the Medicaid program—making it the largest cut in its history—and result in at least 8.6 million more uninsured Americans by 2034, according to the Congressional Budget Office.

“This plan represents an unprecedented rollback of federal support for Medicaid,” said Jerry Penso, MD, MBA, AMGA president and CEO. “Cuts of this size to Medicaid will reverberate throughout the healthcare system. If patients cannot access care through clinics or their primary care doctors, they’ll turn to our already overcrowded and stressed emergency departments. Every patient in the country, Medicaid patient or not, will be negatively impacted by this bill.”

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.

“Our members have made it clear—this is not the time to impose additional cuts on an already overburdened healthcare system,” Penso added. “Congress must come together in a bipartisan effort to strengthen and sustain our healthcare system.”

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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.