May 13, 2025
The California Medical Association (CMA) is sounding the alarm on a sweeping federal bill that would impose more than $625 billion in Medicaid cuts – the largest cuts in U.S. history – jeopardizing health care access for millions and placing an unbearable strain on physicians, hospitals and safety-net systems.
The proposal was revealed late Sunday night by the U.S. House Energy & Commerce Committee and is currently being debated in a hearing that began today and will continue overnight and into tomorrow.
Take Action: CMA is strongly opposing the bill and urges all physicians to contact their members of Congress immediately and ask them to reject the largest Medicaid cuts in U.S. history that will harm millions of Medicaid patients and devastate the health care system.
Yesterday, CMA submitted a letter to the House Energy & Commerce Committee, warning that the bill would dismantle core elements of the Medicaid program and the Affordable Care Act (ACA). The latest Congressional Budget Office estimate, released today, projects the bill would eliminate coverage for at least 10.3 million Medicaid recipients and 5.1 million ACA enrollees.
“The latest federal proposal to gut Medicaid is reckless,” said CMA President Shannon Udovic-Constant, M.D. “Physicians and hospitals will be pushed to the brink, forced to close their doors and unable to continue to care for their patients. The $625 billion cuts to lt Medicaid will leave veterans, seniors, the disabled, children and working families without health care coverage—making emergency rooms the only point of care for millions of people. Communities will be devastated, and lives will be lost.” Rural communities will be the hardest hit.
CMA physicians and leaders are actively engaging with Members of Congress in both Washington, D.C., and district offices, urging them to reject the bill and protect access to care. CMA is also working in coordination with other state medical associations, national specialty societies and other health care partners in this urgent fight.
How You Can Help
Physicians are strongly encouraged to contact their Members of Congress today and ask them to reject the Medicaid bill and instead protect Medicaid for our patients. Contact your members of Congress today at PhysiciansForMedicaid.org.
Also, we have hundreds of physicians who are texting voters to ask them to call their Members of Congress to stop the Medicaid cuts. If you want to sign up to text voters about stopping the Medicaid cuts, you can sign up at ProtectOurHealthcare.org.
Alarming Provisions
CMA is particularly alarmed by provisions that could eliminate vital state financing mechanisms such as provider and managed care organization (MCO) taxes, including California’s own programs, and impose a freeze on new or increased provider/MCO taxes in the future. This financing allows California’s rural hospitals and physician offices to remain open. Because state budgets can’t fill this massive funding gap, they would be forced to cut Medicaid coverage and provider payments that would cause a massive disruption in care delivery—especially in rural and underserved areas already facing a shortage of physicians.
CMA also strongly opposes provisions in the bill that would:
- Slash state-directed payment rates
- Defund Planned Parenthood
- Increase cost-sharing requirements for low-income patients
- Reduce federal matching funds for Medicaid expansion from 90% to 80% for states that provide state-only coverage to undocumented immigrants
- Impose new paperwork barriers, such as work requirements and frequent eligibility redeterminations
Beyond the devastating health implications, independent estimates suggest the cuts could result in nearly one million lost jobs in the health care sector and related industries, along with billions in lost GDP.
“Congress must reject these cuts and instead focus on strengthening the safety net that protects us all,” said Dr. Udovic-Constant.
Contact your members of Congress today at PhysiciansForMedicaid.org.
For More Information