California Health Officials warn of Medicaid cuts impacting 8 million residents

May 11, 2025 | University of California, Boards and Commissions, Executive, California


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California Health Officials warn of Medicaid cuts impacting 8 million residents
The University of California's Health Services Committee convened on May 11, 2025, to address critical issues surrounding proposed federal Medicaid cuts that could significantly impact healthcare access for millions of Californians. The committee highlighted a proposal to reduce the Federal Medical Assistance Percentage (FMAP) by 10% for states providing coverage to undocumented individuals, which could lead to substantial coverage losses in California.

Committee members expressed concern over the potential ramifications of these proposals, particularly the estimated loss of coverage for over 80 million people nationwide. They emphasized the importance of advocating against these cuts, noting that California's congressional delegation has been urged to oppose such measures due to their detrimental effects on vulnerable populations.

In addition to the FMAP reduction, discussions included proposals to repeal nursing home staffing ratios and ban Medicaid payments for gender-affirming care. The committee noted that while some conservative members of Congress were disappointed with the proposals, there is a growing recognition of the political risks associated with significant Medicaid cuts, especially as polls indicate strong public support for the program.

The meeting also touched on the strategic expansion of UC's Medi-Cal program, which aims to enhance specialty care access while navigating the complexities of federal healthcare policies. Committee members acknowledged the balancing act of expanding services amid potential federal challenges, emphasizing the need for continued dialogue on managing risks associated with recent acquisitions and federal actions.

As the committee concluded, members reiterated their commitment to advocating for California's healthcare needs in Washington, D.C., and emphasized the importance of maintaining robust healthcare services for all Californians. The discussions underscored the urgency of addressing these federal proposals and their potential impact on the state's healthcare landscape.

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