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WATCH: On Medicaid Day of Action, Rep. Jim Costa Sounds the Alarm on Deep Cuts to Valley Clinics and Hospitals

July 30, 2025

FRESNO, Calif. – On Medicaid Day of Action, Congressman Jim Costa (CA-21) and healthcare leaders from United Health Centers of the San Joaquin Valley warned of the devastating impacts the so-called “One Big Beautiful Bill” will have on clinics, hospitals, and patients in the Central Valley.

Earlier this month, Donald Trump and House Republicans enacted the “One Big Beautiful Bill,” more like the “One Big Ugly Bill.” Costa voted against the law, which slashes more than $1 trillion from Medicaid, the Children’s Health Insurance Program (CHIP), Medicare, and the Affordable Care Act (ACA), the largest healthcare cuts in U.S. history. As a result, 17 million Americans are expected to lose Medicaid coverage, including 247,384 people across the San Joaquin Valley.

Medicaid cuts will devastate the United Health Centers of the San Joaquin Valley, where nearly 60% of the 180,000 patients served across 37 clinics in Fresno, Kings, and Tulare counties rely on Medicaid (Medi-Cal). Losing this funding means fewer doctors, longer wait times, emergency rooms (ERs) overwhelmed, and could lead to potential closures.

Key Excerpts from Congressman Costa’s Remarks:
“Medicaid payments to hospitals will be reduced by $665 billion. On average, rural hospitals are estimated to lose 21¢ out of every dollar they receive from Medicaid funding. So even if you're not on Medicaid (Medi-Cal) and you have your own separate insurance, you're going to see the impacts because these healthcare facilities need to figure out how to continue providing their full services with less funding. This could result in a reduction of staff, longer emergency room delays, and wait times,”said Congressman Costa.

“I can tell you we're already trying to do a lot with not enough. Almost seventy percent of our patients here are on Medicaid (Medi-Cal). If this safety net is weakened, the things that many of us take advantage of every day, simple things such as prenatal care, cancer screenings, pediatric visits, and lifesaving medications. Those things can go away for many of our patients,”said Justin Preas, CEO of the UnitedHealth Centers of the San Joaquin Valley.  

“Often, we see in the [San Joaquin] Valley, kids with asthma exacerbations. Medicaid is what helps families afford these inhalers and medications that keep kids out of the hospital, threatened with cuts to Medicaid (Medi-Cal). If Medicaid (Medi-Cal) funding is cut, we will see a rise in preventable ER visits, untreated chronic disease, a rise in preventable cancers through early detection programs, and overall worse outcomes in our patients and in the community. 

These are real clinical consequences with long-term effects. As a physician, I can't stand by while access to care is being threatened, and I know my colleagues across the state feel the same,”said Dr. Sharareh Shabafrooz, Associate Medical Director.

Watch Congressman Costa’s full remarks HERE.

Issues:Healthcare