Health groups urge Congress to reject spending caps

The two programs would face $1.6 trillion in cuts under the McCaskill/Corker bill, according to The Lewin Group. Its report says the cuts would cause doctors to stop accepting the programs and strip more than 5 million people of their health insurance.

"We know from experience that across-the-board cuts to federal health programs are counterproductive to health system improvements and will ultimately limit access to care for patients," the AMA said in a statement.

Premiums for private insurance would rise by an average of $721 per employee, because of cost-shifting, the report says.

Sen. Jay Rockefeller (D-W.Va.) has previously said that global spending caps would be even worse for low-income people than proposals to convert federal Medicaid funding into block grants to the states.