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July 3, 2025

Update on legislation effects our community health centers

Read this statement from the NACHC regarding the bill passed in the House and it's effects on our community health centers.

Update on legislation effects our community health centers

From the NACHC:

NACHC is extremely disappointed by today’s outcome in the House of Representatives. This legislation jeopardizes health coverage for an estimated 4 million Community Health Center (CHC) patients and is projected to cost CHCs $7 billion annually in increased uncompensated care costs, with an estimated $13 billion in total economic impact.

CHCs don’t turn patients away, but reductions in Medicaid coverage will force CHCs to make tough budget choices that will impact all patients. NACHC’s estimates show that this legislation could lead to at least 34,000 CHC job losses and 1,800 CHC site closures across the country. Using analysis based on a recent study, this level of disruption could lead to 5,000-6,000 preventable CHC patient deaths per year. 

 When people lose insurance coverage, they don’t stop getting sick—they turn to CHCs as a lifeline in their community. Over the next 10 years, CHCs are expected to see a significant increase in uninsured patients. At least 2 million existing CHC patients are expected to lose Medicaid coverage, and an additional 2 million patients who are newly uninsured after losing Medicaid and Marketplace coverage will turn to CHCs for care (NACHC estimates based on Congressional Budget Office analysis). Patients who rely on Medicaid include children, seniors, veterans, farmworkers and ranchers in rural America, and caregivers, all of whom are an essential part of the U.S. economy.

CHCs are already operating under extraordinary financial pressure as they address the chronic disease epidemic with affordable, effective, and comprehensive primary care services. On average, CHCs operate with margins below -2%, and nearly half of all CHCs (42 percent) are operating with cash on hand that will last 90 days or less. This legislation will add another financial challenge to an already precarious picture: CHC funding is set to expire in less than 90 days. 

CHCs serve as the healthcare safety net for at least 10% of the U.S. population, including at least 20% of rural communities. Rather than reducing coverage and access for patients insured through Medicaid, Congress should prioritize investing in primary care and expanding access to affordable healthcare for the 100 million Americans currently struggling to obtain it.

Hundreds of thousands of CHC advocates across the country have raised concerns about the impact of this legislation on patients and CHC livelihoods. NACHC calls upon bipartisan leaders in Congress and members of the Community Health Center Caucus to address the looming crisis of uninsured individuals who will need care. The timing could not be more critical: we must act before CHC funding expires in 90 days to invest in primary and preventive care for all who need it.