Bobbie D. Frantz Treasurer | DeKalb County Republican Party
Bobbie D. Frantz Treasurer | DeKalb County Republican Party
California's Medi-Cal program, which offers healthcare coverage to undocumented immigrants, is facing a significant financial shortfall. Initially projected to cost $6.4 billion, the program's expenses have surged to $9.5 billion, resulting in a $3.4 billion deficit.
Governor Gavin Newsom is seeking a loan from the state's general fund to address this gap. This request comes after last year's expansion of Medi-Cal to include undocumented immigrants, a move that has sparked political debate.
A spokesperson for Governor Newsom's office cited rising healthcare costs as one reason for the increased expenses. However, Republican Assembly Minority Leader James Gallagher criticized the administration's decision to extend coverage to undocumented immigrants, stating it has been "the biggest driver of cost" for the system.
State Representative Carl DeMaio also voiced his disapproval, claiming that Governor Newsom and California Democrats have rendered Medi-Cal "insolvent" by providing free healthcare to undocumented individuals.
The Department of Finance recently informed California legislators about the need for a $3.44 billion loan due to underestimating the program's costs following its expansion last year.
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