As many as 3.4 million Californians could lose their Medi-Cal health insurance due to proposed cuts in a budget bill currently being debated in the U.S. Senate. Governor Gavin Newsom expressed deep concerns about the potential impact of these cuts, which he described as reckless and damaging.
Newsom highlighted that the budget plan, part of President Trump’s agenda, could lead to the closure of struggling rural hospitals and reductions in government food assistance. He warned that it might also increase premiums for those using Covered California, the state’s health insurance marketplace.
“Medicaid is a vital safety net for one in five Americans,” Newsom said, emphasizing that the proposed changes could significantly harm many vulnerable residents. In California, more than 15 million people rely on Medi-Cal, with over half of the state’s children covered by this program.
The Senate’s version of the bill includes a requirement for many Medicaid recipients to prove their work status every six months. They would need to show that they work, volunteer, or attend school for at least 80 hours a month. States not compliant with this requirement by the end of 2026 risk losing federal funding.
Republican House Speaker Mike Johnson defended the policy, claiming it aims to encourage individuals to contribute to society. However, experts warn that such work requirements could result in eligible individuals losing their benefits simply because they cannot provide the necessary proof.
Newsom noted that about 5.1 million Californians would have to undergo this verification process, and he estimated that a significant portion might not meet the new requirements. He referenced data from New Hampshire and Arkansas, where similar work mandates led to many people losing their coverage.
In addition, the governor pointed out that 400,000 more Californians could lose their insurance if they are required to re-verify their eligibility every six months. This situation could worsen the healthcare landscape, particularly in rural areas where many residents rely on Medi-Cal.
Last year, California made headlines by becoming the first state to provide healthcare to low-income undocumented immigrants. This initiative, while praised by some, has faced criticism and calls for cuts from Republican lawmakers. Newsom’s recent budget proposal suggested significant reductions to this program, including caps on enrollment and new premiums for undocumented adults.
The proposed federal cuts could also threaten the financial stability of 16 rural hospitals that recently received emergency loans. Newsom criticized California’s Republican representatives for supporting a bill that could harm these already vulnerable institutions.
In summary, the ongoing debate in the Senate over Medicaid funding could have far-reaching consequences for millions of Californians, particularly those in rural areas. Newsom’s administration is concerned about the potential loss of coverage and the negative impact on healthcare access across the state.