California's Medi-Cal program is facing significantly higher costs than projected primarily due to an unexpected surge in enrollment among undocumented immigrants and increased pharmacy expenses. The state had anticipated spending $2.7 billion more than budgeted, resulting from new eligibility policies and adjustments. Notably, the recent inclusion of adults ages 26 to 49 and relaxed asset considerations for seniors have contributed to this rapid increase in enrollment. These factors, compounded by pandemic-related changes, complicate fiscal projections as the administration strives to manage these new expenditures effectively.
With the loan and these additional funds, the administration anticipates being able to manage expenditures for the remainder of the current year.
Bass said the department had about one month of data regarding new policies before it had to make projections for the budget Newsom signed.
These changes were unprecedented, and all happened at once,
the state underestimated the number of immigrants without legal status who would sign up to the program in the last year.
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