California Gov. Gavin Newsom is asking lawmakers for an additional $2.8 billion to fund the state’s Medicaid program through the end of the year, Politico reported March 17.
The request comes after Mr. Newsom proposed a $3.4 billion loan to cover Medi-Cal costs through the end of March, the outlet reported.
Here are three things to know:
- The largest source of the shortfall is coverage for undocumented immigrants, according to Politico. Coverage for this population has cost $2.7 billion more than California estimated.
- Rising prescription drug costs are also contributing to the funding gap. Prescription drug costs, including Ozempic and other GLP-1 drugs, have cost $540 million more than the state budgeted for.
- For 2025-26, Mr. Newsom is proposing an 11.8% increase in Medi-Cal spending. Pharmacy costs are expected to increase by $215 million during that time period, according to Politico.
Read more here.
