California lawmakers are allocating an additional $2.8 billion to Medi-Cal following rising costs, the Sacramento Bee reported April 10.
Gov. Gavin Newsom’s administration said that the unexpected costs within the Medi-Cal program are due to expensive drugs, leftover COVID-19 era flexibilities, and a rising quantity of services provided. California expanded Medi-Cal benefits to all eligible undocumented individuals in 2024, which has cost the state billions more than originally budgeted, according to Politico.
The state funding will be accompanied by $8.3 billion in federal funds, and will be added to $3.4 billion in emergency loan funding the program received earlier in 2025, according to the Bee report.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
