Supporters of Medi-Cal warn that proposed cuts to the program could result in a ripple effect, leading to substantial job losses in California's healthcare sector and beyond. A report estimates the loss of up to 217,000 jobs, with central community hospitals like Kaweah Health Center heavily reliant on Medi-Cal funding. This situation poses risks not only to healthcare employment but also to local economies. Additionally, there are political implications as cuts could hinder Republican successes in upcoming elections, especially in districts with high Medi-Cal enrollment. Moderate Republicans are shifting focus to limiting access for undocumented immigrants instead of pursuing federal funding rate changes.
The potential cuts could also slow Republican momentum in California heading into the 2026 midterm elections.
When a healthcare job is lost, that healthcare worker has less money to spend in their community, which could lead to job losses in other non-healthcare industries.
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