By admin ISSUE | MEDI-CAL CHANGES: Advocates and legislators successfully held off changes to California’s Medicaid program — known as Medi-Cal — that were pushed by Gov. Gavin Newsom during this year’s budget negotiations. Newsom wanted to lower the amount of assets that seniors and disabled adults can have and still be eligible for coverage from $130,000 to $2,000. Instead, the limit will now be $21,000 and won’t take effect until July 1 — as long as the next governor and legislators don’t decide to change it.
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Newsom also wanted to increase the monthly fee undocumented people pay to keep receiving full benefits to $50 from $30. But the final budget said the next governor will need to put forward a plan in May that includes a fee no less than $30 but also no greater than $50.
In 2025, the Newsom administration had to borrow and ask the Legislature for billions of dollars to help cover costs for the program after eligibility was expanded to include more people, no matter of their immigration status.
Both changes proposed by Newsom would have saved the state hundred of millions of dollars. But they were seen as adding undue hardships to people who rely heavily on the care. The next governor will have a chance to continue down the path suggested by Newsom or come up with a new approach.
Here’s where the candidates stand.
Xavier Becerra, Democrat: No details yet
Becerra, the former U.S. secretary of health and human services, has not yet decided how he wants to treat either the asset limit or the monthly fee, according to his campaign.
“Trump’s H.R. 1 has done real damage to California’s healthcare system, putting millions at risk of losing their coverage. Secretary Becerra’s priority as governor will be to protect access to care,” said campaign spokesperson Jonathan Underland, referring to the federal bill that Trump and Republicans in Congress approved that imposes requirements and cuts funding for medical care.
Steve Hilton, Republican: Opposes asset limit cut, undocumented healthcare coverage
Hilton, in a statement, opposed the cut to the Medi-Cal asset limit saying: “Seniors and people with disabilities shouldn’t lose their coverage because they’ve managed to save some money. They’ve done the responsible thing. Why punish them for it?”
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As for the monthly fee for undocumented Californians, the Republican said he would end the coverage altogether.
“California spends billions on healthcare for people here illegally,” he said. “Charging $30 or $50 a month doesn’t make that a sensible use of taxpayers’ money.”
Why it is significant
California has faced significant budget deficits in recent years and the next governor is likely to need to dig out of future ones.
Medi-Cal covers more than one-third of California’s population so the eligibility and fee decisions made by the new state leader could lead to savings, but will also be closely watched by legislators and advocacy groups that will be ready to push back on changes they see as too severe.
The next governor will also need to decide on what to do with a proposal to tax corporations that don’t offer healthcare for their employees and who have workers that rely on Medi-Cal. If implemented, money from that tax could be used to offset Medi-Cal costs.
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