California is confronting a $6.2 billion budget gap in its Medicaid program due to the unexpected costs of expanding health coverage to all low-income adults, including immigrants. This expansion, part of an initiative to provide free health care to the state's 15 million Medicaid recipients, has proven more expensive than anticipated, costing $2.7 billion above projections. As federal budget cuts loom, there are concerns about sustaining this level of coverage, which benefits over a third of California's population.
California underestimated the costs of its Medicaid expansion, resulting in a $6.2 billion budget gap that may jeopardize health care for 15 million residents.
The expansion aimed to provide health care for all low-income adults, but the actual sign-up numbers exceeded expectations, adding $2.7 billion more in costs.
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