Proposed Changes in Reconciliation Bill Jeopardizes Care for Community Health Center Patients Insured through Medicaid

The newly released reconciliation bill from the U.S. House Committee on Energy and Commerce proposes changes to Medicaid that would result in millions of Americans who rely on Medicaid for health coverage losing access to healthcare, including Community Health Center (CHC) patients.

Nationwide, CHCs care for one in five people in the U.S. who have health insurance through Medicaid. The Trump administration's goal of Making America Healthy Again presents an opportunity to refocus the healthcare system on primary care to lower rates of chronic disease, increase adoption of healthier lifestyles and reduce long-term federal healthcare spending. Doing so will require strong Community Health Centers, which make up the largest primary care network in the nation.

CHCs proudly serve more than 16 million patients insured through Medicaid who include veterans, children, seniors, farmers, ranchers, and families who need affordable healthcare. Because half of CHC patients get health coverage through Medicaid, they stay healthier with regular access to coordinated primary care. These patients have fewer Emergency Department visits, hospitalizations, and outpatient procedures than patients at other providers, saving taxpayer billions of dollars every year.

Medicaid Restrictions May Harm Healthcare Access for Patients and Raise Healthcare Costs

Preliminary estimates by the Congressional Budget Office found that, if enacted, the bill's Medicaid provisions would cause millions to lose health insurance.

Medicaid is the lifeblood of CHCs, accounting for over 40% of their revenue on average. When CHC patients lose Medicaid coverage, they can still access care at CHCs, which are required by law to serve all patients, regardless of their insurance status or ability to pay. With millions losing Medicaid coverage, CHCs will lose revenue and take on additional uncompensated care costs. Cutting Medicaid will affect patients' health and the financial health of CHCs.

CHCs are already facing significant challenges in meeting the costs of patient care and cannot absorb further reductions to Medicaid funding. Medicaid cuts could trigger a cascade of site closures and service reductions that ultimately cost taxpayers more through increased emergency care and hospitalizations.

Even a small shift in patients from Medicaid to uninsured status could force clinics to reduce services or close locations, jeopardizing access to cost-effective primary care and medical services in communities.

Rural communities would lose critical access points for primary care, dental services, and behavioral health. When CHCs close, communities lose not just healthcare but also jobs and economic stability. Terminating Medicaid coverage for gig workers, freelancers, caregivers, and those who have been laid off will not only compromise their health but also make it harder for them to work.

The partnership between CHCs and Medicaid is fundamental to improving Americans' health and generating cost-savings for taxpayers and must be protected. We urge the Energy & Commerce Committee to amend the bill to protect Medicaid access for patients.