By Kristen Hwang, CalMatters
In a surprising twist, only two Democratic lawmakers opposed Governor Gavin Newsom’s budget cuts to health care for undocumented immigrants last year. One of them was Senator Maria Elena Durazo from Los Angeles. Now, she is working on new legislation to reverse these cuts.
Durazo’s Senate Bill 1422 aims to reinstate Medi-Cal eligibility for all qualifying residents, regardless of their immigration status. This bill would allow immigrant adults aged 19 and over to enroll in Medi-Cal. However, it doesn’t change the recent limits on dental benefits, nor does it eliminate the $30 monthly premium that starts in July 2027. Children without legal status will still retain their benefits.
“We are no healthier as a community than the person least able to access care,” Durazo stated, expressing concern over the implications of a two-tier health care system. She highlighted that undocumented immigrants contribute billions in taxes but struggle to access the healthcare programs funded by those taxes. The state spends around $12 billion each year on health care for immigrants.
The question remains: will Newsom support this bill? With a budget deficit for the fourth consecutive year, even as state revenue rises, his stance is uncertain. Marissa Saldivar, a spokesperson for the governor, did not comment on the proposed legislation.
Newsom’s recent budget proposals have shown limited changes to Medi-Cal, which covers over 14 million Californians. One major concern is the federal tax reform that places restrictions on provider taxes, which many states, including California, rely on for low-income health care funding. The state’s tax on health insurers is substantial, generating roughly $7 billion annually, although this figure is expected to decrease significantly next year.
During Newsom’s time in office, Medi-Cal spending has nearly doubled to $200 billion, adding to the state’s ongoing budget challenges. Much of this funding includes federal dollars, which comprise about $119 billion of the total expense.
Both sides of the aisle criticize how Newsom has handled health care for undocumented immigrants. Republicans point fingers at him for expanding Medi-Cal eligibility, while Democrats are frustrated over his cuts to existing programs. Assemblymember Mia Bonta from Oakland introduced a bill to prevent the state from implementing federal work requirements for Medi-Cal enrollees who rely solely on state funds, notably including undocumented immigrants. Officials estimate that such requirements could disqualify about 2 million Californians from Medi-Cal due to complex administrative processes.
As the fall elections approach, health care spending has become a pivotal issue. California’s largest health care labor union is advocating for a tax on billionaires to fund health care, a proposal that has faced backlash from wealthy individuals in Silicon Valley. Meanwhile, party leaders aim to oust vulnerable Republican congressional representatives, especially those from districts with high Medicaid enrollment.
Overall, the landscape of health care in California is shifting. Current debates not only reflect the struggles of undocumented immigrants but also touch on broader economic and social issues affecting all Californians.
This article was originally published on CalMatters and is shared under the Creative Commons Attribution-NonCommercial-NoDerivatives license.
