Latest news with #MediCal
Yahoo
2 days ago
- Business
- Yahoo
Gavin Newsom proposes $2,000 asset eligibility test to control soaring state Medi-Cal costs
California Gov. Gavin Newsom is proposing an "asset test" for seniors to prove eligibility for Medi-Cal healthcare benefits for low-income Californians in response to a budget shortfall. To qualify, people would have to possess less than $2,000 in assets to qualify. The governor's budget proposal, written by the California Department of Finance, said the reasons for the increased costs include "higher overall enrollment, pharmacy costs and higher managed care costs." In the last 10 years, he said, Medi-Cal costs have increased by $20.5 billion. Newsom Proposes Freeze On Allowing Adult Illegal Immigrants To Join California Medicaid Program Newsom has also proposed freezing new enrollment for adults in the country illegally as a way to cut Medi-Cal costs. "Some of the most significant contributing factors to this growth are the COVID-19 continuous coverage requirement and the implementation of major policy changes such as the full elimination of the asset test for older adults and the full-scope expansion to all income-eligible Californians, regardless of immigration status," the proposal said. . Read On The Fox News App The assets included in the test would be salary, money in a bank account, cash on hand, a second car, home value and retirement funds. Applicants with more than $2,000 in assets would be ineligible for Medi-Cal. The 2025-26 budget proposal said Medi-Cal costs have increased starkly and continue to outpace revenues. The program cost $37.6 billion over the last year, and the cost is expected to increase by $10 billion over the next year without cuts. Along with low-income adults, many seniors and people with disabilities use Medi-Cal benefits that include in-home care services. For decades before 2024, the asset test was required for seniors to prove their eligibility for Medi-Cal, and Newsom's proposal would reinstate it. The proposal said that the asset test would save $94 million this fiscal year and $791 million by the 2028-29 fiscal year. Lawmakers In Deep Blue State Demand Audit Over Skyrocketing Healthcare Costs: 'Alarming Nature' Disability Rights California, a nonprofit, said the proposal would do "tremendous harm" to Californians. Illegal Immigrant Healthcare Costs In Blue State Triggers Intense Budget Debate "While we understand the reality of budget shortfalls and that cuts will sometimes be necessary, the priorities and reality of this May revision are even worse than what we imagined," the group said in a statement. "It demonstrates a continued willingness on the part of the governor to sacrifice the health and human services of California's people, particularly the disabled, poor, and elderly populations of this abundant state." The group added that the asset test "effectively demands extreme poverty in order to continue receiving critical healthcare." The governor defended his proposals, according to the Los Angeles Times, saying, "None of this is the kind of work you enjoy doing, but you've got to do it. We have to be responsible. We have to be accountable. We have to balance the budget." Fox News Digital has reached out to Newsom's office for article source: Gavin Newsom proposes $2,000 asset eligibility test to control soaring state Medi-Cal costs
Fox News
2 days ago
- Business
- Fox News
Gavin Newsom proposes $2,000 asset eligibility test to control soaring state Medi-Cal costs
Print Close By Brie Stimson Published May 31, 2025 California Gov. Gavin Newsom is proposing an "asset test" for seniors to prove eligibility for Medi-Cal healthcare benefits for low-income Californians in response to a budget shortfall. To qualify, people would have to possess less than $2,000 in assets to qualify. The governor said the reasons for the increased costs include "higher overall enrollment, pharmacy costs and higher managed care costs." In the last 10 years, he said, Medi-Cal costs have increased by $20.5 billion. NEWSOM PROPOSES FREEZE ON ALLOWING ADULT ILLEGAL IMMIGRANTS TO JOIN CALIFORNIA MEDICAID PROGRAM Newsom has also proposed freezing new enrollment for adults in the country illegally as a way to cut Medi-Cal costs. "Some of the most significant contributing factors to this growth are the COVID-19 continuous coverage requirement and the implementation of major policy changes such as the full elimination of the asset test for older adults and the full-scope expansion to all income-eligible Californians, regardless of immigration status," he wrote. The assets included in the test would be salary, money in a bank account, cash on hand, a second car, home value and retirement funds. Applicants with more than $2,000 in assets would be ineligible for Medi-Cal. In his 2025-26 budget proposal, Newsom said Medi-Cal costs have increased starkly and continue to outpace revenues. The program cost $37.6 billion over the last year, and the cost is expected to increase by $10 billion over the next year without cuts. Along with low-income adults, many seniors and people with disabilities use Medi-Cal benefits that include in-home care services. For decades before 2024, the asset test was required for seniors to prove their eligibility for Medi-Cal, and Newsom's proposal would reinstate it. Newsom wrote that the asset test would save $94 million this fiscal year and $791 million by the 2028-29 fiscal year. LAWMAKERS IN DEEP BLUE STATE DEMAND AUDIT OVER SKYROCKETING HEALTHCARE COSTS: 'ALARMING NATURE' Disability Rights California, a nonprofit, said the proposal would do "tremendous harm" to Californians. ILLEGAL IMMIGRANT HEALTHCARE COSTS IN BLUE STATE TRIGGERS INTENSE BUDGET DEBATE "While we understand the reality of budget shortfalls and that cuts will sometimes be necessary, the priorities and reality of this May revision are even worse than what we imagined," the group said in a statement. "It demonstrates a continued willingness on the part of the governor to sacrifice the health and human services of California's people, particularly the disabled, poor, and elderly populations of this abundant state." The group added that the asset test "effectively demands extreme poverty in order to continue receiving critical healthcare." CLICK HERE TO GET THE FOX NEWS APP The governor defended his proposals, according to the Los Angeles Times, saying, "None of this is the kind of work you enjoy doing, but you've got to do it. We have to be responsible. We have to be accountable. We have to balance the budget." Fox News Digital has reached out to Newsom's office for comment. Print Close URL
Yahoo
3 days ago
- Business
- Yahoo
Gov. Newsom proposes 'asset test' for low-income and disabled Medi-Cal applicants. What does that mean?
Millions of Californians who rely on Medi-Cal and In-Home Supportive Services could lose eligibility under a proposal requiring recipients to prove their assets total less than $2,000. Gov. Gavin Newsom's recent revised budget proposal highlighted a stark $37.6 billion increase in funding costs associated with Medi-Cal between the 2024 and 2025 fiscal year, compared to $17.1 billion in the 2014 through 2015 fiscal year. The dollar amount needed to fund the program is expected to continue rising over the next several years. The cost has been driven up by a surge in enrollment, pharmacy costs and higher managed care costs, according to the budget proposal. The Medi-Cal caseload reported an increase of 12.7 million recipients between 2019 and 2020 to 15 million in 2024 through 2025. Medi-Cal is the state's health care program that provides free or low-cost health coverage for those who qualify, specifically low-income adults and families, seniors and individuals with disabilities. In-Home Supportive Services provides in-home assistance to eligible aged, blind and disabled people as an alternative to out-of-home care. Newsom has proposed tackling the rising costs of the programs by reintroducing what is called the "asset test" to limit eligibility for the Medi-Cal and In-Home Supportive Services programs. For decades, low-income seniors and those with disabilities had to pass the "asset test" to be eligible for Medi-Cal and In-Home Supportive Services programs. That meant that a single applicant couldn't qualify if they had assets valued more than $2,000. The limit for a couple was $3,000. To determine whether someone had $2,000 or not, the state would look at a person's bank accounts, the amount of cash they had in hand and whether they had a second vehicle, among other analyses. Read more: Cost of undocumented healthcare in California is billions over estimates, pressuring Democrats to consider cuts In 2024, the test was eliminated, allowing all-income eligible people to apply for Medi-Cal's Aged and Disabled program, Med-Care Savings programs and Long-Term Care program regardless of assets. Newsom has proposed reinstating the "asset test" and include in that evaluation the value of a person's primary home, vehicle or retirement fund for both Medi-Cal and Home Supportive Services programs. Reinstating the test would purportedly save an estimated $94 million this coming fiscal year, $540 million the next year and $791 million annually thereafter, which includes costs for Home Supportive Services, according to the California Department of Health Care Services. If approved, the "asset test" would go into effect Jan. 1, 2026. Disability and health advocates are criticizing the governor's proposal, with the nonprofit group Disability Rights California calling it a willingness to "sacrifice the health and human services of California's people, particularly the disabled, poor and elderly populations." "Disability Rights California and many others fought tirelessly for years to get this asset limit eliminated, finding it to be a deeply inhumane and punitive approach, the change just went fully into effect in 2024, and it is truly disturbing to see the Governor reverse course so quickly," the nonprofit said in a statement. Reinstating the "asset test" would result in "people losing coverage and force older adults and people with disabilities into extreme poverty," said the nonprofit organization California Health Advocates. Read more: California faces an additional $12-billion budget deficit, Newsom says The organization says the individuals who would lose coverage as a result of the proposed policy change could ultimately become "Medi-Cal eligible again once they have exhausted any resources they have." "As a result of losing access to care, the costs to the state when they regain eligibility will likely increase because their condition will have worsened and they may no longer be able to live at home, thus requiring full time nursing facility care," the organization said in a statement. Newsom defended his proposed budget cuts saying, "None of this is the kind of work you enjoy doing — but you've got to do it. We have to be responsible. We have to be accountable. We have to balance the budget.' The Legislative Analyst's Office determined that seniors made up just under 10% of Med-Cal enrollment in December of 2024. The largest category of Medi-Cal enrollees is families, followed by childless adults aged 19 to 64 who qualify under the Patient Protection and Affordable Care Act, seniors, persons with disabilities, children in the Children's Health Insurance Program (CHIP) and other enrollees. Families and enrollees of the Patient Protection and Affordable Care Act make up about three-quarters of Medi-Cal enrollment. Even though the number of senior enrollees is relatively low compared to other groups, the state spends heavily on them, with annual costs per enrollee of around $15,000 compared to $8,000 across other caseload categories. To fund most Medi-Cal programs for families, seniors and those with disabilities, the federal government provides a 50% match, compared to other programs like the Affordable Care Act and Children's Health Insurance Program which gets an enhanced match of 90% and 65%, respectively. "While higher health care costs are expected as people age, seniors also carry higher state costs due to the standard federal reimbursement rate," according to the report. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Associated Press
3 days ago
- Business
- Associated Press
Prop 56 Cuts: Patients Will Suffer from Lack of Access to Proper Dental and Oral Healthcare – Leading to Severe and Costly Chronic Health Problems
ORANGE, Calif.--(BUSINESS WIRE)--May 30, 2025-- Western Dental, California's largest Medi-Cal dental provider, with 223 offices in 35 counties across the state, will be forced to close offices if the current proposal to cut Proposition 56 funding moves forward. The company is evaluating the extent of the expected closures, along with other measures to offset the significant impact to dental offices. Proposition 56, a measure overwhelmingly passed by California voters in 2016, directed revenue from a new tobacco tax to increase access to care for individuals and families that qualify for Medi-Cal (California's version of Medicaid) dental services. Prop 56 has not only made it possible for California dentists to provide access and care to more patients but also allowed new providers to open their doors and create a more stabilized and equitable health care system throughout the state, including areas where dentists were previously in short supply for everyone. 'Medi-Cal dental has been significantly under-resourced for decades. Proposition 56 provided critical funding that helped Western Dental open more than 100 new offices across the state and serve millions of patients, many in underserved areas who were otherwise without access to care,' said Preet Takkar, Chief Executive Officer of Western Dental. 'The current budget proposal represents dramatic cuts to dental reimbursement rates, which would make it impossible to keep many of these new offices open, while also impacting additional practices statewide. This proposal would reignite the dental access crisis that existed before the passage of Prop 56 and would ultimately cost the state more in the long run. Unfortunately, dental practices like ours across California will have to make tough choices—reassessing staffing, hours, and office locations—if this funding is eliminated.' Today, Western Dental employs more than 4,000 people in California, including more than 750 dentists and hygienists who provide more than 1 million Medi-Cal patient visits every year. 'Dental care is more than just getting your teeth cleaned. It's essential primary care for children and systemic care for adults,' said Dr. Peter Truong, Western Dental's Chief Dental Officer. 'If dental care is eliminated or reduced, patients suffer adverse health consequences, including tooth decay, gum disease, systemic health issues and social and economic impacts that are far more costly to treat. Eliminating access to dental care will have significant health consequences for millions of Californians. 'Western Dental will be forced to make hard decisions in the coming weeks and months, should Prop 56 funding be eliminated. Unfortunately, that will likely include closing as many as 50 offices, reducing staff in many offices and reducing the number of Medi-Cal dental patients each practice is able to treat. The choices made by the Governor and California State Legislature will have a direct and immediate impact on access to necessary health care and jobs lost should Prop 56 funding be redirected and removed from dental care' added Mr. Takkar. About Western Dental Western Dental has been serving California communities for over 100 years, with a strong commitment to delivering high-quality, affordable dental care. With over 200 locations across the state, Western Dental provides a full spectrum of services including general dentistry, orthodontics, and pediatric care — creating a convenient, comprehensive 'Dental Home' for families across California. As part of the Sonrava Health family of brands, Western Dental shares in the mission to expand access and drive innovation in dental care. View source version on CONTACT: Media Contact Ron Trujillo [email protected] KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: PUBLIC POLICY/GOVERNMENT PRACTICE MANAGEMENT STATE/LOCAL MANAGED CARE PUBLIC POLICY GENERAL HEALTH HEALTH DENTAL SOURCE: Western Dental Copyright Business Wire 2025. PUB: 05/30/2025 11:00 AM/DISC: 05/30/2025 11:01 AM
Fox News
6 days ago
- Business
- Fox News
Illegal immigrant healthcare costs in blue state triggers intense budget debate
The Republican minority leaders in California are responding to potential next steps for the highly scrutinized Medi-Cal program, which is insolvent, as some believe the ability for people to enroll "regardless of their immigration status" is a leading cause. The state faces a $12 billion budget shortfall as budget talks continue in Sacramento. The Medi-Cal program went insolvent earlier this year after it went billions over budget, resulting in $3.44 billion in loan requests to salvage the program, which covers low-income Golden State residents. Republicans said it was in large part due to illegal immigrants being allowed to enroll in the program, and Newsom also said that it was part of the spending issue, but not the whole picture, according to KCRA. "That's going to continue to be a big debate here in California as we're wrestling with a $12 billion dollar deficit and the cost of providing free healthcare to illegal immigrants is $11.4 billion dollars, so if we just didn't do that, that would eliminate our budget deficit," California State Senate Minority Leader Brain Jones said. "Now, there's lots of other ways we can find $12 billion dollars to eliminate the deficit as well." Newsom's May budget revision proposes a pause for adults 19 and older from enrolling in "full-scope coverage" and to start charging a $100 premium each month "for individuals with certain statuses," Fox News Digital reported earlier this month. "To be very clear, these proposals are the results of a $16 billion Trump Slump and higher-than-expected health care utilization. Because of these outside factors, the state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians," Elana Ross, deputy communications director for Newsom's office, told Fox News Digital in a statement. "Governor Newsom refuses to turn his back on hardworking Californians, especially when it comes to their basic health care needs," she added. The proposal from the Newsom administration sparked criticism among some in the legislature, as the Democratic California Legislative Latino Caucus is suggesting a tax hike to pay for the program's coverage for illegal immigrants, according to KCRA. The question remains whether a $100 premium would be enough to get people to leave the program. However, Jones said that Medi-Cal being offered to illegal immigrants might not be quite what Democrats present it as. "It's just a messaging point for the governor and the Democratic leadership. It's not an actual thing. Meaning the governor and the Democrat leadership are promising illegal immigrants coverage, and they are on the rolls, but there's very little access," he said. "A lot of doctors in California that used to provide Medicare and Medicaid have closed up shop, moved to other states. A lot of other doctors that are still here have stopped taking those kinds of patients, even if they're here legally or illegally, because the reimbursement rates are so low, the doctors actually lose money when they take a Medicare or Medicaid patient," Jones continued. Meanwhile, Assembly Minority Leader James Gallagher told Fox News Digital in an interview that the budget shortfall is "a total disaster" that "was completely predictable." "You know, two years ago, Gavin Newsom and the supermajority Democrats decided to fund illegal immigrant healthcare through our Medi-Cal program. And everybody said it's gonna be billions of dollars. It's not sustainable. And at the time, Biden was president, and people were coming across the border, millions of people. We had no idea. And I think a lot of them came to California and signed up. And so now we have a completely unsustainable, bankrupted Medi-Cal system that's required $3.4 billion worth of loans to prop up." On a federal level, the pending reconciliation bill that recently passed the House of Representatives could also create issues for the state's Medi-Cal offerings, as it would change the federal "match" from 90% to 80% for care that is not an emergency, which the Newsom administration says could cost the state billions, The Center Square reported. "If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight," Newsom stated last week.
