Facing a projected $12 billion dollar deficit, Governor Gavin Newsom proposed sweeping changes to Medi-Cal, California’s health insurance program for low-income residents. His plan included freezing new enrollment for immigrants without legal status, cutting dental and long-term care benefits, and implementing a $100 monthly premium.
On Tuesday, state lawmakers approved a modified version of the plan. It still freezes new Medi-Cal enrollment for undocumented adults starting in 2026, but it includes a six-month grace period so participants are not automatically kicked out of the program and removes the age-out rule that would have ended coverage at age 26. The revised plan lowers the monthly premium to $30 and delays dental benefit cuts by one year. Lawmakers also rejected eliminating long-term and in-home care services.
"What our solutions are, are absolutely in no way perfect," Senator Akilah Weber Pierson said during Tuesday’s budget meeting.
Still, advocates said the compromise sends a troubling message.
“This really is an attack on immigrant communities at a time when we’re seeing really extreme and frightening federal attacks,” said Kiran Savage-Sangwan, executive director of the California Pan-Ethnic Health Network.
“This is telling us that the state government, the governor and legislative leaders, are willing to balance California's budget on the backs of hard-working immigrant families, rather than having the courage to take the steps necessary to raise revenue to appropriately tax corporations that are taking advantage of our Medi-Cal program by not providing health coverage to their employees.”
A bipartisan statewide poll released Wednesday found 56% of Californians support keeping Medi-Cal coverage for all low-income residents, regardless of immigration status.
More than two dozen health care workers from San Diego County signed a letter this month urging Weber Pierson to reject the proposal.
“I'm not a politician. I'm not a financial expert. I don't know what the options are, but I just feel like there are some things that should be untouchable. And health care should be one of them,” said Dr. Maya Kumar, a pediatrician with the American Academy of Pediatrics, who signed the letter.
Health advocates say they expect Medi-Cal cuts to overwhelm emergency rooms, drive up health care costs for everyone, and reverse progress toward health equity.
“We are talking about legislating discrimination,” said Ronald Coleman Baeza with California Pan Ethnic Health Network during the public budget meeting. “The legislature will have to live with the people that will die and the people that will get sicker because of this proposal that you're intentionally pushing forward.”
Weber Pierson voted in favor of the revised plan.
“None of it was an easy decision,” she said. “People don't go into this to take things away. I know I didn't. But, you know, unfortunately, this is where we are right now from a financial standpoint.”
The Legislature and Governor have until June 15 to finalize and pass the state budget.
