Medi-Cal Fails in Expanding Health Care Access: State’s Goal Unmet
TL/DR –
In January, California became the first state to open its Medicaid program to every undocumented immigrant within its borders, qualifying some 700,000 adults for publicly funded health coverage. The expansion is expected to cost more than $2 billion annually, a significant burden for a state already facing a budget deficit of up to $73 billion. Critics argue that the added strain on California’s Medicaid system may worsen care for existing beneficiaries due to a shortage of providers and underpayment, and suggest that expanding access to private insurance options like short-term plans could deliver more affordable care.
In January, California Achieved a Historic First in Undocumented Immigrant Healthcare
In a groundbreaking move, California expanded Medi-Cal to include undocumented immigrants, the first state to do so. This offers publicly funded health coverage to around 700,000 adults aged 26-49.
History of Medi-Cal Expansion for Undocumented Immigrants
This is the fourth program expansion in California, following eligibility for children in 2015, young adults in 2019, and those over 50 in 2022. Minnesota may be next.
Cost Analysis of the Medi-Cal Expansion
The Medi-Cal expansion could cost over $2 billion annually. The number of immigrants and financial strain of the program could result in taxpayers bearing a heavier burden.
Fiscal Impact on California’s Budget
California, already dealing with a budget deficit of up to $73 billion, faces a larger financial challenge with the expansion. The state’s contribution to Medicaid costs is set to increase by 17% this year.
Impact on Medi-Cal Beneficiaries and Providers
The expansion may result in longer wait times and fewer available providers for existing beneficiaries. According to a 2021 report, only 70% of physicians accept new Medicaid patients due to low reimbursement rates.
Alternatives to Medicaid Expansion
If the goal is to improve access to quality healthcare, there might be better ways. Lifting the ban on the sale of short-term plans, which cost up to 70% less than Obamacare, could be one solution. As undocumented immigrants can’t enroll in Obamacare, these plans may offer a viable alternative.
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