Will California’s Billions in Borrowing for Medi-Cal Endanger Immigrant Coverage?

California’s Medi-Cal program is facing unexpected budget challenges. The state’s health care system, which serves around 15 million people, is now more costly than Governor Gavin Newsom predicted. This has led to the need for $3.4 billion in loans from California’s general fund to cover these costs.

Enrollment in Medi-Cal is higher than expected, particularly among undocumented immigrants. About 1.6 million of these individuals are enrolled in the program, which is crucial for those who often lack access to health care. California is one of only a few states that provides health coverage to immigrants regardless of their legal status.

Senate Minority Leader Brian Jones has criticized the Newsom administration, arguing that it has prioritized undocumented immigrants over legal residents. He claims that the state spends approximately $8.5 billion a year on health care for undocumented individuals. According to Jones, this spending contributes significantly to the current budget shortfall.

H.D. Palmer, from the state finance department, attributes some of the increased costs to the larger number of undocumented individuals using Medi-Cal. In January, California’s Department of Health Care Services noted that it is spending $2.7 billion more than budgeted to expand coverage for immigrants.

The Medi-Cal population grew during the COVID-19 pandemic, spiking at 15.6 million in 2023. While numbers have since dropped to 14.9 million, significant growth has also occurred among seniors, who make up about 10% of enrollees but account for substantial spending due to their need for long-term care.

Elana Ross, speaking for the governor’s office, emphasized that rising costs are an issue for Medicaid programs across the country, affecting states of all political affiliations. She argues that the current budget issues are not unique to California.

Democratic leaders are committed to protecting health care access for immigrants, citing their contributions to the state’s economy. According to a report, undocumented immigrants pay an estimated $8.5 billion in taxes annually, roughly matching what the state spends on their health coverage.

The introduction of coverage for undocumented children in 2016 marked the start of expansion, with additional groups added in subsequent years. Some Republican lawmakers supported these changes at the time.

Currently, challenges remain from potential federal expenditure cuts that could reduce funding for these programs significantly, jeopardizing Medi-Cal. The House Republicans’ recent proposal could lead to $880 billion in cuts over the next decade, which could translate to a loss of $10 billion to $20 billion annually for California.

Health Access California’s Amanda McAllister-Wallner stresses that blaming immigrants for budget issues is unfair. She argues that the changes made over the years have strengthened Medi-Cal, leading to healthier outcomes for California residents.

It’s a complex situation that highlights the importance of health care system funding and the challenges faced by states in providing adequate coverage for all residents. The conversation around Medi-Cal and its funding will continue to evolve as lawmakers balance budget constraints with the need for accessible health care.



Source link

California Budget,Health Care,immigration,Medi-Cal