California Gov. Gavin Newsom (D) on Wednesday proposed to pause enrolling immigrants who entered the U.S. illegally into a state-funded health care program, in order to cut down costs.
The Medi-Cal program currently provides health care coverage to low-income adults who are residents of the state regardless of federal legal status.
Newsom said he hopes to begin the process by 2026 and will also plan to charge those who are already enrolled a traditional monthly premium, The Associated Press reported. The premium price would be set at $100 for those without legal status and legal residents who remain ineligible for federally funded Medicaid.
Officials have estimated that the program has cost the state more than $2.7 billion amid a $6.2 billion Medicaid shortfall, according to the AP. The program is fully funded by state dollars.
Due to the unexpected deficit, Newsom has floated allowing families and children who are already enrolled in the program to continue receiving coverage.
It’s unclear how long the Medi-Cal freeze would pause enrollment.
“The state must take difficult but necessary steps to ensure fiscal stability and preserve the long-term viability of Medi-Cal for all Californians,” the governor’s office said in a memo announcing the decision.
The Golden State has wrestled with price increases after several concurrent wildfires ravaged communities in the Los Angeles metropolitan area. Newsom has requested nearly $40 billion of federal funds to help with recovery efforts that are also expected to cost billions.
