Gov. Gavin Newsom’s (D-CA ) Department of Finance notified lawmakers on Wednesday that it needs another$ 3.4 billion to cover the costs associated with the state’s Medicaid program, which includes providing health insurance to illegal immigrants.
The one-page text, which came after Newsom told lawmakers they underestimated the charges, did not specify why Medi-Cal needs the money.
The position has been hemorrhaging , cash, and this latest issue has brought renewed investigation on California’s health coverage for illegal immigrants.
The condition first earmarked$ 3 billion per year for the cause, but that assessment fell well below truth. The current budget proposal estimates that it will cost the state$ 8.4 billion to cover undocumented immigrants in 2024-2025 and$ 7.4 billion in 2025-2026.  ,
” This is a disturbing pattern — Newsom creates a budget that’s laughably detached from reality, spends way more than he has, then puts his hand out for more when the bill comes due” , , California State Assembly Leader James Gallagher, a Republican, told the , Washington Examiner. ” It’s how we went from a$ 100 billion surplus to a massive deficit in barely a year. The cost of these rewards to illegal immigrants is$ 9.5 billion — that is badly needed funds that could go toward helping our people”.
California State Assembly Speaker Robert Rivas, a Democrat, admitted the strain on the funds could lead to making some” strong choices” about care for Californians, including capping membership and limiting rewards.  ,
” The greatest threat to healthcare in California is Republicans and their reckless budget cuts to Medicaid” , , Rivas said in a statement to the , Washington Examiner.  ,” Immigrant staff and families, who pay billions in taxes, need access to care, and I am glad to defend California’s development expanding Medi-Cal. There are strong choices forward, and Assembly Democrats likely closely observe any plan from the governor. But let’s be obvious: We will not move around and left our refugees behind”.
Rivas did not specify whether the newcomers he referred to are undocumented.  ,
In all, there are roughly 15 million Californians enrolled in Medi-Cal.  ,
Newsom’s company told the , Washington Examiner , that the$ 3.4 billion product was discussed before and is suggestive of growing prices for health insurance across the board.  ,
” This isn’t new — as the leadership now outlined , in the mayor’s January budget plan, extra cash is needed to support Medi-Cal. Rising Medicaid costs are a regional issue, affecting both red and blue says alike”, his department said. ” This is not exclusive to California”.
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In fact, other states experiencing rising Medicaid costs include Pennsylvania, Colorado, and Indiana, which have reported$ 2.5 billion,$ 1.2 billion, and a billion dollars in additional costs, respectively.  ,
Factors contributing to a hike in prices include higher-than-expected membership following COVID-19, an aging population that is dependant on Medicaid benefits, and rising healthcare costs in common, including prescription drugs, company wages, and long and costly clinic stays.  ,
