SACRAMENTO, CA — A new publication from the California Budget & Policy Center (Budget Center) explains the increase in Medi-Cal spending and the policy and budget decisions driving these changes. The Q&A, authored by Adriana Ramos-Yamamoto, details why Medi-Cal costs have exceeded expectations and what steps state leaders can take to protect access to health care for millions of Californians.
With health care costs climbing nationwide, California is grappling with higher spending due to several key factors, including the expanded use of high-cost prescription drugs, continued pandemic-era enrollment protections, and the recent expansion of Medi-Cal to include income-eligible undocumented adults. These cost increases reflect broader national trends and the ongoing challenge of accurately predicting spending for one of the largest state-run health care programs in the country.
“There is no single reason why Medi-Cal costs are rising — and it’s misleading to suggest otherwise,” said Adriana Ramos-Yamamoto, senior policy analyst at the California Budget & Policy Center. “Blaming immigrants or singling out one policy masks the real story. State leaders must focus on sustainable solutions to ensure all Californians continue to have the health care they need.”
The publication also outlines how budget actions taken this spring — including a $3.4 billion loan and a nearly $11 billion funding increase through AB 100 — aim to stabilize Medi-Cal for the current fiscal year. But long-term challenges remain. Without new revenues to support ongoing investments in the face of harmful federal cuts, Californians could face disruptions in care, particularly for communities that already face deep health inequities.
To ensure a stronger Medi-Cal system moving forward, state policymakers should pursue sustainable funding solutions — including increasing revenues by re-evaluating tax breaks that benefit wealthy individuals and profitable corporations — to protect the program from federal cuts that threaten health care access for millions.
View the publication at: www.calbudgetcenter.org/resources/qa-whats-behind-californias-rising-medi-cal-spending.
For more information and resources, visit the Budget Center’s website at: www.CalBudgetCenter.org.
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About the California Budget & Policy Center:
The California Budget & Policy Center (Budget Center) is a nonpartisan research and analysis nonprofit advancing public policies that expand opportunities and promote well-being for all Californians.
