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California Governor Gavin Newsom has proposed “asset tests” to older adults to prove the eligibility for MEDI-CAL healthcare benefits for low-income Californians in response to budget shortages. To qualify, you must own an owner of less than $2,000 of the property to qualify.
The governor’s budget proposal, written by the California Department of Treasury, said reasons for the increased costs include “an increase in overall registration, pharmacy costs and management costs.”
Over the past decade, Medi-Cal’s costs have increased by $20.5 billion, he said.
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“Some of the most important factors in this growth are the ongoing coverage requirements for Covid-19 and the implementation of major policy changes, such as the complete elimination of asset testing for seniors and the expansion of full scope to Californians suitable for all incomes, regardless of immigration status,” the proposal states. .
The assets included in the test are salary, bank account money, cash on hand, second car, housing value and retirement fund. Applicants with assets of $2,000 or more are not eligible for Medi-Cal.
California Governor Gavin Newsom has proposed a “asset test” to prove eligibility for medical health care benefits for low-income Californians in response to budget shortages. (Andrew Harnik/Getty Images)
The 2025-26 budget proposal said Medi-Cal’s costs have increased significantly, outweighing revenues. The program costs $37.6 billion from last year, and is expected to increase by $10 billion from next year without cutting costs.
Along with low-income adults, many elderly and people with disabilities use the benefits of MEDI-CAL, including home care services.
For decades prior to 2024, seniors will need an asset test to prove eligibility for Medi-Cal, and Newsom’s proposal will restore it.
The proposal said it would save $94 million in asset testing by this fiscal year and $791 million by fiscal year 2028-29.
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Newsom writes that asset testing will save $94 million this year and $791 million by fiscal year 2028-2029. (Chip Somodevilla/Getty Images)
The rights of disabled people, a nonprofit, said the proposal would “major harm” to Californians.
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“We understand the reality of budget shortages and understand that it can be reduced, but the priorities and reality of this are even worse than what we imagined,” the group said in a statement. “It demonstrates the continued willingness on the part of the governor to sacrifice the health and welfare of Californians, especially those with disabilities, poor and elderly people in this abundant nation.”
The group added that asset testing “effectively demands extreme poverty in order to continue receiving critical health care.”
For decades prior to 2024, seniors will need an asset test to prove eligibility for Medi-Cal, and Newsom’s proposal will restore it. (Getty)
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According to the Los Angeles Times, the governor defended his proposal, saying, “This is not a job that you enjoy doing, but you have to do it. We have to be responsible, we have to be accountable. We have to balance our budget.”
Fox News Digital has contacted Newsom’s office for comment.
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