On May 14, Governor Newsom released the May Revise budget, which addresses a $12 billion shortfall for the upcoming fiscal year. To close this gap, the Governor’s plan includes reductions and eliminations to vital Medi-Cal programs and services, reversing years of commitment to coverage for all. The budget also proposes to redirect provider tax funding away from safety net providers and to the General Fund, undermining the will of voters who approved the historic passage of Proposition 35 in 2024.
At L.A. Care, we acknowledge that tough fiscal choices for California lie ahead—but those decisions must reflect California’s shared values.
The May Revise proposes that new enrollment into Medi-Cal for adults without satisfactory immigration status would be frozen as of January 1, 2026. Additionally, beginning January 1, 2027, this same population already enrolled in Medi-Cal would be required to pay a $100 monthly premium. These changes present significant challenges to equity and sustainability, as they are likely to reduce access to preventive care, drive up emergency room usage and costs, and increase uncompensated care on the provider safety net. Requiring monthly premiums may lead healthier individuals to forgo coverage, ultimately raising the cost of care for those who remain enrolled. Additionally, the infrastructure needed to implement and administer such a premium policy does not yet exist and will incur administrative costs that offset the anticipated savings.
Statewide polling shows overwhelming support for ensuring safety net services for all low-income residents, regardless of immigration status. Protecting access to health care services for all Californians—regardless of immigration status—is not only the right thing to do, it is also a smart economic strategy that keeps our communities healthy.
Recognizing this fact, in December 2024, L.A. Care’s Board of Governors unanimously approved a resolution to support healthcare for all, regardless of immigration status. The Board resolution states that L.A. Care will strongly advocate for continued access to health coverage and benefits for all eligible children and adults, regardless of immigration status.
L.A. Care also recognizes the need for a strong provider network that is financially viable and able to serve Medi-Cal recipients with quality care. That’s why the health plan urges legislators to preserve the original intent of Proposition 35, which was approved by voters to reinvest provider tax revenues into the Medi-Cal program to expand access, strengthen the provider network, and invest in the workforce necessary to meet the needs of Medi-Cal enrollees.
L.A. Care is eager to work with the State to protect Medi-Cal’s foundational principles while preparing for emerging fiscal and policy challenges. The health plan remains committed to our members and will continue to advocate for the services and coverage they need and rightfully deserve.