California Gov. Gavin Newsom is calling for an additional $2.8 billion in loans to address the bloated deficit of the state’s Medicaid program, which exceeds budget expectations, primarily due to illegal immigration compensation.
The new demand comes after the Democratic governor last week asked lawmakers for $3.4 billion in loans from the General Fund to cover outstanding costs for Medi-Cal, one of the state’s leading healthcare programs that pose both federal and state taxpayers.
“With a tough financial choice, in collaboration with Protem McGuire and Speaker Ribas, Governor Newsom will evaluate proposals to curb long-term spending, including medical, while working to protect California’s core and social services.”
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California Governor Gavin Newsom, D-Calif. recently signed a law regulating additives used in popular California foods. (Medianews Group/East Bay Times via Getty Images)
The additional $2.8 billion will surface healthcare programs through June.
Newsom’s Office has pushed back surges in health care costs, as it is caused by illegal immigration in the program. Instead, they believe that all populations and drug costs will increase to an overall enrollment. The administration also pointed to other states facing budget shortages for the Medicaid program, Pennsylvania and Indiana.
But Congressional Republicans, who have been hit by years of increased state spending, have denounced state policies as the perpetrator of the shortage.
“It’s an incredible $6.2 billion beyond the budget…and costs continue to rise, except for the end,” California Senate Republican minority leader Brian Jones wrote in an X post Monday. “Californians should not be forced to take charge of the radical Democrats’ reckless financial mismanagement.”
“Even Jerry Brown refused to expand medical to all illegal immigrants because he knew it was financially irresponsible and unsustainable,” Jones wrote. “Currently under Newsom, legal residents pay prices both financially and with less access to healthcare. The public deserves the answer. Why are the costs far higher than what they promised?
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Illegal immigrants are being detained by the US Coast Guard in Southern California. (USCG Southern California via x)
Last year, California expanded its MEDI-CAL to cover all low-income adults ages 26 to 49, regardless of their immigration situation, and was able to do so first. According to state data, approximately 1.6 million illegal immigrants are enrolled in the state’s healthcare program, with 15 million California residents registered.
“Individuals that are legally presented and not legally exist can apply through eligible California to see if they are covered by their health plan through California, California or MEDI-CAL,” the California Healthcare Market said on its website. “There is no “wait period” or “five year bar.” ”
The state initially estimated the program would cost just under $6 billion between 2024 and 2025. But a year after the program, that budget is expanding. In response, House Republicans have recently advanced a proposal to cut $880 billion from Medicaid groups over the next decade.
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(A Republican lawmaker in Sacramento says the state’s policy to allow illegal immigrants to register with Medi-Cal is attributed to a massive budget shortage.)
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Newsom’s latest budget proposal predicts that California will spend $8.4 billion to cover illegal immigration with Medi-Cal in 2024-2025, followed by $7.4 billion between 2025 and 2026. During a budget hearing with lawmakers, Michelle Bass, director of the Ministry of Health, which manages Medi-Cal, had significantly underestimated the number of illegal immigrants enrolled last year.
Bass said during the hearing that the department had one month of data on the new “unprecedented” policy before it had to make forecasts for the budget signed by Newsom.
Jamie Joseph is a US political reporter for Fox News Digital, covering transgender and cultural issues, the departments of education, health and welfare, and state legislative development.
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