Sacramento, California (AP) – California governor Gavin Newpom signed legislation on Monday to end $ 2.8 billion budget difference in Medicaid state services and provide coverage in June for 15 million people, including immigrants who receive health care through the program.
The legislation is part of the State’s decision to resolve the hole of $ 6.2 billion in the state budget of Medicaid. A year comes after California launches an ambitious expansion of the coverage to provide free health for all low -income adults, regardless of their immigration status. Expansion costs much more than the forecast country and can force democratic governor and democratic legislators to re -evaluate the future reflection of millions of people.
California is also preparing for major budget strikes if Republicans in Congress continue with a plan to reduce billions of dollars in Medicaid and potentially threaten the coverage for millions of people. California provides free health care to more than one -third of its 39 million people.
Here’s what you know about California Medicaid Gap:
Is the expansion of the coating in adult immigrants causes the difference?
Partly. California for the first time expanded health benefits for low-income children without legal status in 2015 and later added the benefits for young adults and people over 50 years of age. The program was expanded again last year to cover adults at the age of 26 to 49 years.
The cost of recently expanded to cover all low -income adults is $ 2.7 billion more than the state budget, as California underestimated the number of people who would register for services. California employees said they had only a month of data last year when the state had to produce budget forecasts.
The state has not said how many people have enrolled through the expansion. Last year, the state predicted that about 700,000 state residents living in the United States illegally will receive full health coverage for access to preventive care and other treatment.
Other factors that put pressure on state budgets across the country also play a role in California, government officials said. These include $ 540 million increasing pharmacies and $ 1.1 billion from other emissions, such as more enrollment than the elderly.
In Illinois, which has also expanded the coverage in recent years to more low -income residents, regardless of immigration status, the democratic government of JB Pritzker offers a reduction of $ 330 million to cover for immigrants from 42 to 64 years, citing increasing costs.
What does California do for a shortage?
The Newsom administration told the legislators in March that it had borrowed $ 3.44 billion, the maximum authorized under state legislation, by the General Payment Fund for March. The extra $ 2.8 billion state funding will also unlock the coincidence of federal money to cover the costs that have already been incurred in June.
Civil servants said this month that the situation was “unstable” and told legislators that the state finds ways to reduce costs next year.
The state has suggested that the defense of the pandemic era, which prevented the people from Medicaid from being destroyed. The Newsom administration is also preparing for “significant variability” after repression of President Donald Trump’s immigration.
Will California cancel the coating of immigrants without legal status?
Previously, Newsom told reporters that returning the extension of the “is not on my package”.
Other democratic leaders, including President Robert Rivas and Senate President Pro Tempore Mike McGuire, also swore to guarantee immigrants benefits, but have admitted a “difficult choice forward.”
The budget aperture is adopted by the criticism of Republican legislators on expansion, some calling for Audit by Medicaid, also known as Medi-Cal.
“Democrats’ poor accounting has led to Medi-Cal to interruption, which makes it difficult for patients to see a doctor,” a statement from the Republican Assembly leader James Gallaher said. “We owe it to the Californians-and to the vulnerable people who depend on this program-to make sure that Medi-Cal meets their needs.”
Newsom defended the expansion in one of its episodes of podcast, adding that providing preventive care accessible to all low -income people helps save the state’s money in the long run.
How will the congress plan reduce Medicaid funding to affect California?
The budget difference in the amount of $ 6.2 billion is “permit”, state MPs said. But the threats of congress from reducing Medicaid financing can add more voltage.
California will need to reduce the coverage, limit recording, or raise taxes to help cover costs if the congress follows.
Civil servants have said they are sure that this will increase the coverage for millions of people in the state.
Even with the largest state budget in the country of about $ 322 billion, California has no capacity to fill services funded by the federal government, staff said.
More than half of Medicaid’s state funding comes from the federal government. For the next fiscal year, this is approximately $ 112.1 billion. Federal funding does not cover the costs associated with preventive care for immigrants without law.