California Governor Gavin Newsom announced on Friday that as many as 3.4 million residents could lose their Medi-Cal health coverage if a new federal budget bill is passed by the U.S. Senate. Medi-Cal, California’s Medicaid program, provides free or low-cost health coverage for low-income individuals and families.
Newsom’s warning comes amid ongoing negotiations in Congress over federal budget proposals that could roll back pandemic-era policies and change funding mechanisms vital to state-administered health care programs. The governor emphasized the serious consequences for California’s most vulnerable populations, noting that the scale of potential loss of coverage is unprecedented.
The proposed changes reportedly involve stricter Medicaid eligibility rules and reduced federal contributions, which could force state governments to reassess enrollment criteria and possibly implement cost-saving measures such as eligibility redeterminations. Many of the affected Californians are immigrants, seniors, and underserved communities who heavily rely on Medi-Cal for essential medical services.
State officials and lawmakers have expressed concern that the budget measure under consideration risks undermining public health infrastructure. They are advocating for amendments that would protect current Medicaid recipients or for new federal support to offset the potential losses.
Governor Newsom has pledged to work closely with California’s congressional delegation to oppose any federal legislation that would strip health care access from millions of residents. He also called for a broader national discussion on maintaining healthcare coverage as the country transitions out of emergency pandemic protocols.
As deliberations continue in the Senate, health policy experts and advocacy groups are closely monitoring the situation, warning that mass disenrollment from Medi-Cal could lead to higher uninsured rates, poorer health outcomes, and greater strain on emergency medical services across the state.
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