Media Statement

California Hospitals Say ACA Replacement Plan Will Likely Result in Significant Reductions in Coverage

The proposed Affordable Care Act (ACA) partial repeal and replacement plan released last night by House Republicans could have negative impacts on California hospitals and the patients they serve. In particular, CHA is concerned about the likelihood of a reduction in coverage that would result from this proposal.

California leads the nation in expanding health care coverage, with 91 percent of all Californians now being covered. The plan’s proposal to restructure Medicaid will likely undo the important gains in coverage that have been made over the past few years. California has the highest poverty rate in the nation. An estimated 6.3 million Californians, including 1.9 million children, live in poverty.

CHA is disheartened by the failure of this plan to restore funding for the Medicare program. Currently, under the ACA, Medicare funding to California hospitals is being cut by more than $26 billion through 2026 in exchange for the promise of expanded coverage. Unless these payments are restored, California hospitals and the patients they serve will likely face a diminution of available health care services.

As the effort to repeal and replace the ACA continues to unfold, CHA looks forward to working with members of the California congressional delegation to maintain optimal coverage for all Californians.