California Gov. Gavin Newsom is proposing freezing enrollment for undocumented immigrants in the state’s Medicaid program as it faces large budget shortfalls.
A proposed budget published May 14 would freeze enrollment of undocumented immigrants ages 19 and older in Medi-Cal. It would also impose $100 monthly premiums for immigrants without legal status who remain in the program, and roll back long-term care and dental benefits for these enrollees.
In March, the state borrowed $3.4 billion to pay managed care plans and providers, and lawmakers later approved an additional $2.8 billion in funding to cover shortfalls.
Here are five things to know:
- The largest cause of the shortfall is coverage for undocumented immigrants, which has cost more than the state projected. California covers an estimated 1.6 million people without legal status through its Medicaid program, according to KFF Health News.
- The state first estimated it would cost $2.4 billion to extend Medicaid coverage to all low-income adults, regardless of immigration status, KFF Health News reported. The actual cost has been nearly four times as high, at $9.5 billion.
- California Senate Majority Leader Lena Gonzalez, co-chair of the Latino Legislative caucus, told California Healthline the caucus members will not support Newsom’s budget proposal.
- Other states have rolled back health coverage for undocumented immigrants due to unexpected costs. Illinois will sunset a program introduced to cover adults without legal status between ages 42 – 64 by the end of June, Capital News Illinois reported.
- Medi-Cal is the nation’s largest Medicaid program, with nearly 15 million beneficiaries.
