Valley Leaders Sound Alarm on Medicaid Funding Cuts

Top officials at United Health Centers are raising concerns regarding potential reductions in Medicaid funding over the next few years.

"Medicaid goes beyond being mere insurance; it serves as a vital support system that enables us to identify, address, and stop illnesses," stated Dr. Sharareh Shabafrooz, Associate Medical Director at United Health Centers.

With Congressman Jim Costa, they pushed for the restoration of funds to Medicaid initiatives, following more than $1 trillion in cuts over the next decade under what is known as the "Big Beautiful Bill."

The chief executive officer of United Health Centers mentioned that nearly 70% of their patients participate in the Medi-Cal program.

In the San Joaquin Valley, we deal with significant shortages of medical professionals, and our healthcare system is severely underdeveloped," stated Justin Preas, CEO of United Health Centers. "Therefore, any reduction in funding for the Medi-Cal program would be extremely harmful. I can already see that we’re struggling to accomplish much with insufficient resources.

RELATED: CEO of United Health Centers discusses future growth despite possible changes in financial support

Dr. Shabafrooz thinks these reductions would affect more than just people relying on Medi-Cal.

"If patients postpone treatment due to financial constraints, their illnesses become worse over time, which ends up costing healthcare systems more money and affects everyone," stated Shabafrooz.

Republican Representative Vince Fong was unavailable on Wednesday, though he had earlier stated that modifications to Medicaid within the bill would prevent federal tax funds from being utilized to offer healthcare benefits to undocumented immigrants, and would implement reasonable employment requirements.

Nevertheless, as part of a plan to reduce expenses, last month Governor Gavin Newsom suspended processing new Medi-Cal applications for "specific adults who are undocumented and lack proper immigration documentation required for full-scope federal Medi-Cal coverage," beginning in 2026.

Costa mentioned that financing for Medicaid must be considered within the budget. He also highlighted a bill proposed in the Senate by Republican Senator Josh Hawley of Missouri.

It suggests eliminating certain recent cuts to Medicaid financing, along with doubling the Rural Health Transformation Fund from $50 billion to $100 billion and extending the program's timeline from five to ten years.

The fund was created through the legislation due to worries about rural hospitals nationwide.

Medical experts state that changes to Medicaid will not start until next year, so if you worry about losing your benefits, it's advisable to take advantage of preventative care services immediately.

To stay updated with the latest news, follow Kate Nemarich on Facebook , Twitter and Instagram .