Can California afford health care for undocumented immigrants? [Los Angeles Daily News] - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
January 6, 2024 Newswires
Share
Share
Post
Email

Can California afford health care for undocumented immigrants? [Los Angeles Daily News]

Daily News (Los Angeles, CA)

California is now providing the full scope of Medi-Cal benefits to undocumented immigrants.

Full-scope Medi-Cal, called Medicaid in other states, covers primary and preventive care, specialists, prescription drugs and other services. Previously, immigrants without legal status were eligible only for restricted scope Medi-Cal, which provided benefits for such things as emergency room visits and pregnancy-related care.

But effective Jan. 1, 2024, all California residents who meet the income eligibility requirements, regardless of immigration status, are eligible for full scope Medi-Cal benefits.

The policy was advanced piecemeal. Beginning in 2016, full scope Medi-Cal benefits were granted to children under the age of 19, regardless of immigration status, as long as they met the other eligibility criteria. That was expanded to young adults through age 25 in 2020. Two years later, the policy was expanded again to include anyone age 50 or older. And on January 1 of this year, the missing group, adults age 26 through 49, became entitled to exactly the same full-scope Medi-Cal benefits available to low-income citizens and legal residents of California.

There are now approximately 14 million people, roughly one-third of the state population, on Medi-Cal. State officials said the latest addition could add another 700,000 people to the rolls and will cost about $3.1 billion per year.

In truth, no one has any idea how many people will be added to the rolls, or what it will cost.

Medi-Cal is an entitlement program. Everyone who meets the eligibility requirements is entitled to enroll in it, and then they’re entitled to have Medi-Cal cover the cost of whatever medical services they need.

The latest expansion was approved by lawmakers in 2022 and tucked into SB 184, one of those lengthy budget trailer bills that are rushed through the legislature in a matter of days without going through the usual committee process where policies can be more thoughtfully considered.

If lawmakers had taken the time to read the bill, this sentence might have jumped out at them: “The federal Medicaid program prohibits payment to a state for medical assistance furnished to an alien who is not lawfully admitted for permanent residence or otherwise permanently residing in the United States under color of law.”

That means California will not receive federal matching funds to help pay for the extension of full scope Medi-Cal benefits to undocumented immigrants. The cost of this new entitlement is on California taxpayers.

But the highest cost will be borne by the Californians who already depend on Medi-Cal for health care.

Politicians can stand pompously in front of cameras and declare, “Health care is a human right,” but that’s a lie. Health care is a service provided by skilled and trained people. There can’t be a right to anything that has to be provided by someone else. What about their rights?

To stretch the state’s funds while enrolling more people to receive benefits, California sharply limits the amount that health care providers will be paid for treating Medi-Cal patients, and as a result, doctors sharply limit the number of Medi-Cal patients they will accept.

Medi-Cal reimburses providers at roughly 70% of the rate that Medicare pays, and Medicare pays far less than employer-paid health insurance.

In 2015, groups representing California Latinos filed a civil rights complaint with the U.S. Department of Health and Human Services alleging that long wait times for care had resulted in lower survival rates for cancer patients on Medi-Cal. Then in 2017, the Mexican American Legal Defense and Educational Fund (MALDEF) sued the California Department of Health Care Services. The complaint stated that Medi-Cal reimbursements were among the lowest in the nation, causing Medi-Cal patients to have substantially worse access to health care than Californians who had different insurance.

MALDEF’s lawsuit, filed in Alameda County, cited the Department of Health Care Services’ own data to show that between 2000 and 2016, the percentage of Medi-Cal recipients who were Latino went up, and at the same time, Medi-Cal fee-for-service reimbursements went down. “Medi-Cal now only pays 52 percent of what Medicare pays for the same service, compared to 65 percent in 2000,” the complaint stated, adding that managed-care reimbursement rates also dropped.

MALDEF argued that Medi-Cal’s low reimbursement rates violate the law. The federal Medicaid act requires that reimbursement rates to health care providers must be “adequate to enlist providers for the level of care and services . . . available to the general population” and that medical care must “be provided with reasonable promptness to all eligible individuals.”

In 2017, there were “only” 13 million Californians on Medi-Cal. Now it’s 14 million, with an estimated 700,000 more eligible to enroll as a result of the latest expansion.

But is it 700,000 or will it be even more? Asked Thursday how many illegal immigrants have been released into the U.S. during the Biden administration, Director of Homeland Security Alejandro Mayorkas admitted it was “well more than a million per year.” The number of border crossings in December alone was reported to be 302,000, an all-time record. How many will come to California?

Related Articles

Gov. Gavin Newsom, who will unveil his annual budget proposal this week, was asked on Wednesday if he plans to roll back the latest expansion of Medi-Cal. “No,” he said, “I’m committed to it. I believe in universal healthcare. I believe it’s a fundamental right.”

California is currently facing a $68 billion budget shortfall. What’s the plan? Can you guess?

On Jan. 10, the Assembly Revenue and Taxation Committee will hold a hearing on a “wealth tax” proposal, AB 259, to be accompanied by a constitutional amendment, ACA 3, that would allow the Legislature to define wealth and tax it. Call Chair Jacqui Irwin at (916) 319-2042 if you’d like to let her know what you think. You can watch the hearing at arev.assembly.ca.gov/hearings.

Write [email protected] and follow her on Twitter @Susan_Shelley

©2024 MediaNews Group, Inc. Visit dailynews.com. Distributed by Tribune Content Agency, LLC.

Older

Editorial: Good ideas to lower insurance rates

Newer

Almost 57,000 Idaho kids have lost Medicaid. Federal regulators are worried

Advisor News

  • Help child-free clients plan for their later years
  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
  • Three estate planning ideas to protect your clients and their wealth
More Advisor News

Annuity News

  • Guidance, bulletin or reg? NAIC debates form of annuity illustration update
  • Nationwide adds mutual fund-linked strategy to New Heights Select FIA
  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
More Annuity News

Health/Employee Benefits News

  • New York approves increase for health insurance in 2027
  • Keep the transcript; Don’t delete the audio
  • State announces rates for 2027 Affordable Care Act plans
  • More than half of insured Americans fear a major medical bill
  • Starbucks raises health insurance premiums, sparking worker tension
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Agam Capital Advises JAB Insurance on Completing the Acquisition and Successful Rehabilitation of Columbian Financial Group
  • Former Lawrence County deputy indicted in alleged life insurance fraud scheme
  • Life insurance sales rise across all product lines in Q2, Wink reports
  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.