As a federal debate heats up over legislation that could bring historic cuts to Medicare and Medicaid (Medi-Cal), it’s essential that California’s federal representatives hear from hospital leaders about how these cuts would devastate both access to health care and hospitals struggling to deliver vital health services.
Earlier this week, hospital CEOs and government relations teams received a call to reach out to members of Congress to share the vital role Medicare and Medicaid play for your patients and your hospital, as well as the impact of potential federal policies on access to care.
It’s important that all hospitals reach out now — as this legislation is being developed — even though details of the proposals are not available. Hospitals’ voices will be needed again to engage with representatives when votes on cuts are near.
A web page has been developed to support outreach efforts. The page includes:
- CHA’s letter on continuing resolution priorities
- CHA’s letter on federal budget reconciliation
- Hospital messaging guidance
- CHA federal priorities for 2025
- District-specific infographics
- CHA infographic: Protecting Access to Care for All Californians
- Medicaid primer
- Medicare and Medicaid “options” document
- Congressional district Medicaid information
- Federal advocacy webinar recording
The threats to Medicare and Medicaid are on two tracks.
First, Congress must act to fund the federal government by March 14 to avoid a government shutdown. Issues being discussed as part of this negotiation include disproportionate share hospital (DSH) cuts, telehealth and hospital-at-home policies, support for rural health care, and more. The wrong outcome of any of these policies would be disastrous for California.
Second, Congress is mapping out a budget plan for 2026 that could include: reductions in the federal match for Medicaid funding, cuts to the Area Wage Index policy (which adjusts payments for high cost-of-living regions), site-neutral payment policies, curtailment of the 340B program, cuts to funding for insurance premium subsidies, and more. For many hospitals in California, these proposals represent an existential threat.
Not enough details of these proposals are known to model their specific impact on California, but the outcome of these budget debates will undoubtedly have a long-term and negative impact on California hospitals’ ability to provide vital health care services.
It’s critical that your congressional representatives understand how your hospital needs Medicare and Medicaid to continue to serve the community and constituents they were elected to represent.
Please take steps to reach out to your member of Congress as soon as possible. Questions? Email Anne O’Rourke at aorourke@calhospital.org.
