- California is taking out a $3.4 billion loan to cover health care costs. The money will cover “critical payments” one year after expanding Medi-Cal coverage to all immigrants living illegally in the state.
- The Department of Finance told the state assembly that California is spending $9.5 billion this year to provide medical services for individuals living illegally in the state.
- According to the Kaiser Family Foundation, seven states and Washington, D.C., offer health care to adults and children, regardless of immigration status.
Full Story
California is taking out a $3.4 billion loan to cover costs incurred by the state’s health care program. The move comes one year after medical coverage was expanded to all immigrants illegally in the state. The state’s finance department said it already approved the loan to make critical payments to Medi-Cal providers.
The money for the loan is coming out of an account within the general fund used to cover economic uncertainties.
How much money does California spend on health care?
The Department of Finance told the state assembly that California is spending $9.5 billion this year to provide medical services for individuals illegally living in the state. The state’s general fund is covering $8.4 billion.
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Starting Jan. 1, 2024, California began offering medical coverage to all immigrants illegally in the state through Medi-Cal. The program is the state’s version of Medicaid, the federal program that covers low-income individuals.
What has the governor’s office said?
In a statement to KCRA, a spokesperson for California Democratic Gov. Gavin Newsom, said the shortfall that led to the loan is not due to care for those illegally in the state.
“This isn’t new — as the administration outlined in the Governor’s January budget proposal, additional funding is needed to support Medi-Cal,” spokesperson Izzy Gardon told KCRA. “Rising Medicaid costs are a national challenge, affecting both red and blue states alike. This is not unique to California.”
During a budget hearing in February, State Rep. Carl DeMaio, R, said cutting the program would lead to a $1 billion surplus and allow the state to have a reserve.
“My colleague from Los Angeles mentions a moral budget, a morally balanced budget. I’d like to start with a balanced budget,” DeMaio told lawmakers.
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According to the Kaiser Family Foundation, 14 states plus Washington, D.C., offer state-funded health care to all children regardless of immigration status, seven of those states and Washington, D.C., also offer coverage to some or all adults.
California is taking out a $3.4 billion loan to cover costs incurred by the state’s healthcare program, one year after medical coverage was expanded to all undocumented immigrants in the state. The state’s finance department said it already approved the loan to make critical payments to Medi-Cal providers.
The money for the loan is coming out of an account within the general fund used to cover economic uncertainties.
The Department of Finance told the state assembly that California is spending $9.5 billion this year to provide medical services for undocumented individuals. The state’s general fund is covering $8.4 billion.
Starting January 1, 2024, California began offering medical coverage to all undocumented immigrants in the state through Medi-Cal, the state’s version of Medicaid, the federal program that covers low-income individuals.
A spokesperson for Gov. Gavin Newsom, D, said of the shortfall “This isn’t new. Rising Medicaid costs are a national challenge, affecting both red and blue states alike. This is not unique to California.”
During a budget hearing in February, State Rep. Carl DeMaio, R, said cutting the program would lead to a $1 billion surplus and allow the state to have a reserve.
DeMaio: “My colleague from Los Angeles mentions a moral budget, a morally balanced budget. I’d like to start with a balanced budget.”
According to the Kaiser Family Foundation, 14 states plus DC offer state-funded health care to all children regardless of immigration status, seven of those states and DC also offer coverage to some or all adults.
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