ISMS, Physicians Nationwide Advocate Against Slashing Medicaid!
June 13, 2025
A bill under consideration in Washington would reduce Medicaid spending by billions and cause millions of Medicaid enrollees to lose their healthcare coverage
ISMS joined with 45 other state medical associations to urge the U.S. Senate to reject Medicaid cuts in the proposed federal legislation H.R. 1, which had cleared the House of Representatives in May.
Significantly reducing the funding for Medicaid would hurt Illinois' most vulnerable – those who depend on this insurance coverage to access healthcare.
H.R. 1 would reduce Medicaid spending by $723 billion and cause at least 7.8 million Medicaid enrollees to lose their healthcare coverage. About $200 billion in cuts in the bill are related to "provider taxes," which are longstanding, lawful mechanisms used by 49 states to sustain their Medicaid programs.
The bill would also negatively impact the federal student loan programs, making it harder for students to pursue medical careers at a time of critical physician shortages.
The specific comments in the communication to the U.S. Senate target these key provisions in H.R. 1, which state medical associations urge the Senate to reject:
These provisions would reduce access to care and worsen physician shortages! Instead, we are asking lawmakers in Washington to strengthen their support for medical education and protect Medicaid, which currently serves 80 million vulnerable Americans. H.R. 1 advanced in the U.S. House of Representatives and the Senate is working on its companion legislation. It is hoped the Senate version does not include some of the more onerous provisions passed by the House.
If you have questions, please contact the ISMS Health Policy Research and Advocacy team by email.
A bill under consideration in Washington would reduce Medicaid spending by billions and cause millions of Medicaid enrollees to lose their healthcare coverage
ISMS joined with 45 other state medical associations to urge the U.S. Senate to reject Medicaid cuts in the proposed federal legislation H.R. 1, which had cleared the House of Representatives in May.
Significantly reducing the funding for Medicaid would hurt Illinois' most vulnerable – those who depend on this insurance coverage to access healthcare.
H.R. 1 would reduce Medicaid spending by $723 billion and cause at least 7.8 million Medicaid enrollees to lose their healthcare coverage. About $200 billion in cuts in the bill are related to "provider taxes," which are longstanding, lawful mechanisms used by 49 states to sustain their Medicaid programs.
The bill would also negatively impact the federal student loan programs, making it harder for students to pursue medical careers at a time of critical physician shortages.
The specific comments in the communication to the U.S. Senate target these key provisions in H.R. 1, which state medical associations urge the Senate to reject:
- A moratorium on new provider taxes and a freeze on provider tax levels
- Elimination of certain provider taxes on hospitals, managed care organizations, nursing homes and other providers that do not meet uniformity standards
- Payment limits on state directed payments
- Administrative barriers that could cause gainfully employed and legitimately eligible Medicaid recipients to lose Medicaid coverage
- Student loan program changes that exacerbate physician shortages
These provisions would reduce access to care and worsen physician shortages! Instead, we are asking lawmakers in Washington to strengthen their support for medical education and protect Medicaid, which currently serves 80 million vulnerable Americans. H.R. 1 advanced in the U.S. House of Representatives and the Senate is working on its companion legislation. It is hoped the Senate version does not include some of the more onerous provisions passed by the House.
If you have questions, please contact the ISMS Health Policy Research and Advocacy team by email.