Care workers represented by the SEIU protested against potential Republican cuts to Medicaid, healthcare, and SNAP benefits at the U.S. Capitol. Analysts warn that proposed Republican tax restrictions on hospitals could lead to significant losses in Medicaid funding, particularly affecting California's Medi-Cal program, which supports nearly 15 million low-income residents. Such cuts could exacerbate California's existing $12 billion deficit, prompting further reductions in healthcare benefits, as emphasized by Democratic leaders like Gov. Gavin Newsom.
If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight.
California has netted an estimated $8.8 billion this fiscal year from its tax on managed care plans.
No state has more to lose than California, whose Medicaid program, called Medi-Cal, covers nearly 15 million residents with low incomes and disabilities.
Republican efforts to restrict taxes on hospitals could strip states of tens of billions of dollars, harming the nation's poorest and most vulnerable populations.
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