Scotts Valley, Calif., February 24, 2025 — This week in Washington, D.C., the House will likely review a budget resolution that is said to include an $880 billion cut, largely coming from reductions in Medicaid spending. One-third of the state’s population depends on Medi-Cal (California’s Medicaid program) for their health care. In rural areas served by the Alliance, nearly half of the population relies on Medi-Cal. Drastic cuts to this program wouldn’t just affect Medi-Cal members—they would destabilize health care for everyone.
“As Congress debates budget cuts, it is critical to preserve and protect California’s essential health care infrastructure,” said Michael Schrader, CEO of the Alliance. “Medi-Cal funding helps stabilize the health care infrastructure serving all residents. Major federal Medicaid cuts could lead to the closure of vital health facilities, including hospitals and clinics accessed by all.”
Many hospitals and clinics are already operating on thin margins. If people lose health coverage, more will seek care from crowded emergency rooms, increasing rates of uncompensated care. Higher rates of uncompensated care are offset by charging higher premiums for people with commercial health coverage, negatively impacting all residents and the businesses that provide health coverage to their employees.
In addition to increased premiums and overburdened emergency rooms, severe cuts to Medi-Cal could potentially result in hospital closures in rural areas that largely depend on Medi-Cal funding to serve their populations. These cuts would ultimately lead to worse health outcomes for everyone.
California voters understand how crucial Medi-Cal is to the state’s economy and to healthier communities. Last November, an average of 69% of the voters in counties served by the Alliance passed Proposition 35, which will increase access to care and expand the health care workforce [County by county vote results on Prop. 35 здесь].
“Californians deeply care about the health of their neighbors and the local economy, so we are urging everyone to remind their local members of Congress about the importance of maintaining funding for Medicaid,” said Schrader. “While the Alliance is seriously concerned about devastating cuts to health care in the counties we serve, we remain committed to fulfilling our mission to deliver the highest quality of care at every life stage.”
Об Альянсе здравоохранения Центральной Калифорнии (Альянс)
The Alliance is a regional Medi-Cal managed care health plan established in 1996, dedicated to improving access to health care for over 450,000 members in Mariposa, Merced, Monterey, San Benito and Santa Cruz counties. Operating under the state’s County Organized Health System (COHS) model, the Alliance connects members with providers to deliver timely services and care, emphasizing prevention, early detection and effective treatment. With vision of “healthy people, healthy communities,” the Alliance remains committed to enhancing access to adding to worse health care outcomes for everyone. www.thealliance.heath.
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