ISMA joined state medical associations from across the U.S. who urged Senate and House leaders to reject Medicaid and student loan cuts proposed in the House budget reconciliation bill (H.R. 1). The bill would reduce Medicaid spending by $723 billion, potentially causing more than 7.6 million people to lose coverage, and includes a $200 billion cut to provider taxes used by 49 states to fund care. The letters, sent to Senator Jim Banks and Senator Todd Young, warn that these cuts would threaten hospitals, nursing homes, and physician practices — especially in rural areas — and could destabilize entire state health systems.

The letter also opposes:

1. A moratorium and cap on provider taxes, which would reduce funding flexibility for states.
2. The elimination of non-uniform provider taxes, which many states rely on with federal waivers.
3. Capping state-directed payments, which could harm public hospitals and specialists treating complex cases.
4. New administrative barriers that could cause eligible Medicaid recipients to lose coverage.
5. Student loan restrictions, including borrowing caps and removal of Public Service Loan Forgiveness for residents, which would worsen physician shortages.

The associations call on the Senate and House to support policies that preserve Medicaid access, strengthen state flexibility, and invest in the physician workforce.