California lawmakers discuss $2 billion Medi Cal funding amid rising healthcare costs

California's Assembly Budget Committee convened on April 10, 2025, to address the significant increase in Medi-Cal funding, which has surged by approximately $14 billion since the pandemic. This rise has raised concerns among committee members about the sustainability of the program and its implications for California's healthcare system.

During the meeting, discussions highlighted that Medi-Cal serves around 15 million Californians, primarily low-income individuals, including families, seniors, and persons with disabilities. The program's eligibility is set at about 138% of the federal poverty level, which translates to an annual income of approximately $20,000 for individuals. The committee noted that a substantial portion of Medi-Cal recipients are undocumented individuals, but the broader increase in funding is attributed to a growing number of eligible low-income residents.

Committee members expressed concerns about the impact of potential federal funding cuts on hospitals that rely heavily on Medi-Cal reimbursements. It was noted that many hospitals could face operational challenges or even closure if Medi-Cal funding were reduced, particularly those serving a high percentage of Medi-Cal patients.

The meeting also provided demographic insights into the Medi-Cal population: 43% are families, 9% are seniors, 7% are persons with disabilities, and 34% are low-income childless adults. This breakdown underscores the critical role Medi-Cal plays in providing healthcare access to vulnerable populations across the state.

As the committee prepares to vote on a $2 billion allocation to support Medi-Cal, members emphasized the importance of maintaining healthcare access for those in need, especially in light of ongoing challenges such as hospital closures and rising healthcare costs. The discussions reflect a broader commitment to ensuring that California's healthcare system remains robust and accessible for its most vulnerable residents.