Gov. Gavin Newsom's administration is seeking an additional $2.8 billion for the Medi-Cal program, essential for providing healthcare to nearly 15 million Californians. This request follows notification that $3.44 billion has already been borrowed to make crucial payments through March. Department of Health Care Services has identified escalating costs, particularly from larger caseloads and increasing pharmacy expenses. The legislature is expected to vote on the funding request in the upcoming month amidst discussions on sustainable spending and the recent expansion of Medi-Cal to undocumented adults.
"We took these steps because it is important to maintain our commitment to our providers and plans to make timely payments for the remainder of the current year to ensure Californians and those on Medi-Cal get the services in the current year."
"The state expanded Medi-Cal eligibility to undocumented adults between 26 and 49 years of age in 2024, adding about 750,000 residents to the state's insurance pool."
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