The California Medicaid program borrowed $ 3.4 billion from the general state of the State – and will probably need even more – to cover hot air balloon health expenses for 15 million residents with low income and disabilities.
The State Department of Finance revealed the loan to legislators in a Late letter WednesdayNoting that funds were necessary to make critical payments to health care providers in Medi-Cal, the version of the Medicaid state. In recent months, the administration of Governor Gavin Newsom has warned against the costs of arrow health care, including a higher prescription Prices for medicines And Increased registration by newly eligible seniors And Immigrants without legal status.
Finance spokesperson HD Palmer said the loan will cover Medi-Cal bonds until the end of the month. He refused to specify the total of the potential program deficit. However, a document disseminated by state Senate managers warns that additional funding may be necessary to cover expenses until June 30, end of the financial year.
Costs overlap adds a new layer of difficulty for democrats who control the legislature and are already struggling with Congress budgetary plans which could reduce the funding of Medicaid, which represents 60% of the budget of 174.6 billion dollars of Medi-Cal. President Donald Trump And Republican legislators Also criticized the Californian democrats for having covered residents, regardless of their immigration status.
Newsom spokesperson Izzy Gardon, minimized the loan. “The costs of Medicaid costs is a national challenge, affecting red and blue states,” said Gardon. “It’s not unique to California.”
Last year, health officials said that the state would spend about $ 6.4 billion during the year 2024-25 to cover immigrants without legal status, which the Democratic Governor praised as a key step towards his objective of providing “universal coverage” to the Californians. In a recent testimony, however, finance personnel have declared to legislators that the health benefits extended to all immigrants eligible for income without legal status should cost around $ 9.5 billion, of which $ 8.4 billion will come from the general fund.
The Republicans called for new control of the State’s decision to cover residents without legal status. “This program is out of control”, the head of the Minority of the Senate Brian Jones Published on the social platform X. “We demand a complete audience and a complete cost analysis so that the public exactly knows where their taxes go.”
Patient defenders have opposed Republicans who distinguish the expansion of immigrants.
“Health care costs are influenced by many factors, including prescription drugs, hospital costs, etc.,” said Rachel Linn Gish, spokesperson for Health Access California, a consumer defense group.
According to a Fall update From the Ministry of Health Services, Medi-Cal expenses have increased due to Higher registration than expected of the elderlyfewer Californians lose medical coverage than expected and an increase in pharmaceutical expenditure, as well as the widening of immigrant coverage. For example, the state spends $ 1.1 billion more for residents who had to lose coverage after the COVVI-19 pandemic, and more than expected dollars to cover unauthorized residents.
The president of the Assembly, Robert Rivas, said that he was determined to maintain the expansions of the state of the Medi-Cal services.
“There are difficult choices to come, and the Democrats of the Assembly will closely examine any proposal from the governor,” he said in a statement. “But let’s be clear: we will not drive and will not leave our immigrants.”
The leaders of the Senate said that they are looking closely at the costs and estimated cases of the state and recommend cost containment measures within the framework of their budget proposal in the coming weeks.
Scott Graves, director of the California Budget Budget & Policy Center budget, said that he was not unusual for the government of the State to make adjustments when expenses do not line up with projections.
Last year, for example, the State borrowed $ 1.75 billion compared to its general fund when the revenues of a service providers were delayed. Before that, said the Ministry of Finance officials said California contracted a similar loan in 2018 for $ 830 million.
“The reality is that all of this are only estimates, especially with a very complicated program like Medi-Cal,” said serious, noting that $ 3.4 billion represents approximately 2% of the state’s overall MEDI-CAL budget. “It seems that we are about to make a mountain from a mole.”
Mike Genest, who was director of finance for the Republican Governor Arnold Schwarzenegger, agreed that the adjustments can be routine. But he said that the extent of Medi-Cal’s current overtaking was not.
“For this to happen in the middle of the year – we are only in March – I mean, it’s quite surprising,” said Genest.
Californian Democrats continue to characterize Trump and Congress Republicans as the greatest threat, indicating the Chamber’s budgetary plan to reduce Medicaid spending up to $ 880 billion. They say that discounts of this magnitude would leave millions of uninsured residents, reducing access to preventive care and leading more expensive emergency services.
They warned that certain short -term cost increases could be motivated by residents newly eligible for long -term care, which could move in the coming years. However, some recognize difficult decisions to come.
“We must certainly make sure that those who are our most vulnerable – our children, those who have chronic conditions – continue to have a kind of coverage,” said Democratic Senator Akilah Weber Pierson, doctor of the County of San Diego. “The question is, what will it look like?” To be completely honest with you, at this point, I don’t know.
This article was produced by Kff Health Newspublishing California Healthlinean editorially independent service of California Health Care Foundation.
Kff Health News is a national editorial hall that produces in -depth journalism on health problems and is one of the main KFF operating programs – an independent source of research, survey and independent journalism. Learn more about Kff.
Use our contents
This story can be republished for free (details).
👑 #MR_HEKA 👑
