Medi-Cal or Medicaid is the payment system used for persons enrolled in California’s Assisted Living Waiver Program (ALWP). In September 2024, the program suspended enrollments to over 7,000 eligible individuals due to “budget shortfalls.” A thorough search of the Department of Health Care Services’ (DHCS) website could not determine when the state may reopen enrollments. Facilities that admitted residents in anticipation of the March 2025 opening of new enrollments must wait until the state establishes its 2025-2026 budget.
Overall, the state’s Medicaid program appears to be replete of resources. According to DHCS, “California’s Medicaid program covers more than one-third of the state’s population.” That one-third does include persons who the state labels as “immigrants” but not illegal immigrants.
Due to higher than anticipated costs, the Medicaid/Medi-Cal program took a loan of $3.44 billion, and now Governor Gavin Newsom wants $2.8 billion more. Budget figures in March were released showing even more money is needed to “fully cover Medi-Cal bills through the end of the [fiscal] year.” California’s director of DHCS, Michelle Baass, said unanticipated costs have caused the shortfall including “coverage for undocumented immigrants.”
The nonprofit, nonpartisan CalMatters reported that the reason for California’s Medicaid budget shortfalls is “the insurance of undocumented immigrants.” Newsom’s policy of “universal health care, regardless of immigration status” is causing a fiscal disaster. However, the state deliberates deflects self-blame opting to blame the state’s problems on anyone and anything. Senate Budget Chair Scott Wiener said, “Trump and the Republicans in Congress are trying to take a wrecking ball to Medicaid.” Budget subcommittee chair Assemblymember Dawn Addis said, “It is our own federal government that appears fixated on rectifying years of its own mismanagement on the backs of those with the least economic means who are seniors, people with disabilities and others in our community.”
California said it “fears” Robert F. Kenndy, Jr., the Secretary of the U.S. Department of Health and Human Services, and to possible cuts to Medicaid funding, but what exactly has been cut? The HHS website revealed only contract terminations for “consulting,” DEIA promotions, media, and “subscription” contracts, including 19 Politico contracts, have been cut.
The Los Angeles Times wrote that only California provides healthcare to illegal immigrants at a current taxpayer price tag of $9.5 billion but is more than $3 billion over the budget. CalMatters: “The [budget] news came as a surprise to some lawmakers, prompting questions about the scale of the problem.” The excessive cost of Ozempic for illegals is being blamed, too.
The 2025-2026 budget will allegedly increase 11.8 percent, or $4.4 billion, as more illegals enter the state. “There is no single, agreed-upon estimate of the current size of the budget deficit,” CalMatters said. Estimates from many state sources range from $38 million to $68 billion.
Apparently, on May 14 the state’s Department of Finance and its Legislative Analyst’s Office will release a “May Revision” budget. It is likely to show the state’s revenues are significantly down. The Legislature is seeking to increase taxes upon “wealthy corporations,” which is likely to create a greater exodus of corporations.