Health care organizations brace for potential effects of cuts to Medicaid funding

The American Medical Group Association (AMGA) has joined a chorus of medical and physician organizations urging lawmakers to rethink potentially massive cuts to Medicaid.

The Senate has taken up deliberations on the One Big Beautiful Bill Act, the federal spending plan that has been proposed in response to policies of President Donald J. Trump. Following House approval this spring, the Senate Finance Committee this week published its portion of the reconciliation bill.

Health care associations have been sounding the alarm about potential cuts to Medicaid that reach across the sector, with potentially millions of people losing health insurance. This week, AMGA pointed to its survey results that forecast dramatic effects.

“Patients who are dropped from Medicaid will forgo care until they show up in our already overcrowded and strained emergency departments,” AMGA President and CEO Jerry Penso, MD, MBA, said in a statement.

“Cuts of this magnitude will only result in fewer services, fewer providers, and the closure of healthcare facilities,” Penso said. “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.”

AMGA also pointed out that the Senate proposal eliminated a House provision that 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.”

This slideshow presents survey findings of AMGA members.