Gavin Newsom’s health plan would restore Obamacare mandate, expand access for undocumented

Sacramento Bee (CA)

Jan. 07--On his first day in office, Gov. Gavin Newsom unveiled a sweeping health care plan that would prop up the Affordable Care Act, expand health care for undocumented immigrants and give the state new powers to negotiate drug prices.

Part of his plan involves reinstating the individual mandate, a tax on people who don't have insurance that was part of the federal Affordable Care Act. Congress revoked it in 2017, allowing people to opt out of having health insurance without a penalty.

Revenue from imposing the penalty at the state level would subsidize health insurance, building on existing federal subsidies.

Newsom also announced signing an executive order that makes the Department of Health Care Services responsible for negotiating all drug prices for Medi-Cal, the state's health insurance program, a dramatic expansion of the department's power to negotiate prices.

Currently, drug prices for Medi-Cal are negotiated piecemeal by public and private entities. The order also directs state agencies to collaborate when purchasing prescription drugs. It's intended to lower prescription drug costs.

Newsom's announcement Monday also includes a budget proposal to expand Medi-Cal eligibility to young adults living in the country illegally. Currently, children without legal status are eligible for Medi-Cal benefits until they turn 19. Newsom wants to extend that age limit to age 26.

His plan doesn't go as far as the one proposed by Democratic lawmakers this legislative session, which would let all adults access Medi-Cal regardless of immigration status, provided they meet the programs income requirements.

The California Immigrant Policy Center, which supports the Legislature's plan, applauded the governor's proposal.

"Making sure healthcare is affordable and accessible for every Californian, including undocumented community members whom the federal government has unjustly shut out of care, is essential to reaching that vision for our future," the group said in a statement. "Today's announcement is an historic step on the road toward health justice for all."

Also on Monday, Newsom sent a letter to the Trump administration asking for permission for California to pursue a government-funded health care system known as "single payer." It's unlikely the federal government will cooperate with Newsom's liberal plans.

The governor also signed an executive order establishing a California surgeon general.

"These are concrete, tangible steps toward universal coverage in California," said Anthony Wright of Health Access California, which advocates for expanded access to health care. "It's important that the governor is focused not just on coverage but on cost."

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