Millions are at risk under federal health care cuts. California must step up - 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
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
July 3, 2025 Newswires
Share
Share
Post
Email

Millions are at risk under federal health care cuts. California must step up

TOM PHILPNapa Valley Register

One in 10 Californians are at risk of losing their health insurance based on what Congress is up to in Washington, if Gov. Gavin Newsom's estimates are anywhere close to right.

This is the governor who once vowed to find the money to maintain tax rebates for electric vehicles if Donald Trump and his federal Republicans were to take them away, as if he can protect California from the shifting political winds back east.

Yet, now, Newsom and Sacramento Democrats aren't exactly racing to keep Californians insured.

Lawmakers all but ignored the health care implications to California of Donald Trump's so-called "Big, Beautiful Bill" as they passed a new state budget last week.

And who can blame them? The impacts of nearly 4 million Californians losing their health care coverage overnight are so massive, so expensive — and so downright cruel — all Newsom (or any of us) can really do right now is to quantify the inhumanity and hope that it doesn't actually happen.

"I never thought I'd see this in my lifetime," Newsom said the other day at a press briefing. "This is devastating." These impacted Californians don't fit into an established political identity that lawmakers can rally behind, such as the undocumented immigrants who will receive health care in next year's budget because they are an important constituent to Democrats (and as workers, important contributors to the economy).

Will anyone rise to be the champion of low-income Californians who don't work 20 hours a week and are at risk of losing their coverage? Or the family purchasing insurance through the state's Medi-Cal program that simply can't afford the higher premiums proposed in the federal legislation?

These are real people who don't fit tidily into a certain demographic. And they may be left on their own to deal with one personal crisis after another.

The legislation, in search of spending cuts that only partially pay for tax increases that go disproportionately to the wealthy, attacks health care in two ways. The biggest is Medicaid, the federal health care program for low-income Americans that is administered here as Medi-Cal.

In a complete reversal of the efficiency efforts previously championed by Elon Musk (who continues to hate this bill), Congress is proposing dozens of pages of new paperwork for many Medi-Cal recipients to maintain their coverage. Those between the ages of 19 and 64 would have to document 80 hours of monthly work, education or job training, to qualify.

Newsom's administration is estimating that 3 million Californians would no longer qualify for coverage and another 400,000 would outright lose it because they can't deal with or understand the new paperwork.

Meanwhile, Congress is also seeking to make life a lot more miserable for those getting subsidized insurance from the Obama-era Affordable Care Act, administered here as Covered California. Another 400,000 Californians could drop this coverage, by Newsom estimates, based on higher premiums proposed in the legislation.

The misery doesn't end there: An estimated 5.5 million Californians could be heading toward less-healthy diets, as Cal Fresh, a program that provides fresh produce to low-income residents, is on the congressional chopping block as well.

These cuts aren't about waste, fraud or abuse. This is a carefully crafted attack on some Americans who are among the most politically disenfranchised. These are people living on the edge who scramble to make end meets.

The solution isn't to go back into the state budget and strip it of health care coverage of undocumented Californians. This wouldn't come close to funding the care of those Californians who may be about to lose it. We should be heading toward a nation where everyone can see a doctor. Now we're racing precisely in the opposite direction.

Health care rarely rises as the top issue for voters.. If this legislation passes and does anything close to the damage that is envisioned, these victims will be left behind. Hopefully they will vote and send Washington a message that tax cuts for our most fortunate cannot be shouldered by our least fortunate. •

Tom Philp is a Pulitzer Prize-winning editorial writer and columnist for the Sacramento Bee.

©2025 The Sacramento Bee. Distributed by Tribune Content Agency, LLC.

Older

California’s former insurance commissioner wants oil and gas companies to pay for the home insurance crisis

Newer

How artificial intelligence controls your health insurance coverage

Advisor News

  • Lifetime income is the missing link to global retirement security
  • Don’t let caregiving derail your clients’ retirement
  • The ‘magic number’ for retirement hits $1.45M
  • OBBBA can give small-business clients opportunities for saving
  • Equitable launches 403(b) pooled employer plan to support nonprofits
More Advisor News

Annuity News

  • Lifetime income is the missing link to global retirement security
  • ‘All-weather’ annuity portfolios aim to sharply limit rainy days
  • Annuity income: The new 401(k) standard?
  • Smart annuity planning can benefit long-term tax planning
  • Agam Capital Announces the Continued Growth of Agam ISAC’s Bermuda Platform
More Annuity News

Health/Employee Benefits News

  • Findings from University of Pennsylvania Provides New Data on Managed Care (Is Medicare Home Health Care Utilization Substituting for Long-Term Care? Evidence From Dual Eligible Beneficiaries): Managed Care
  • Helping you age better
  • Carolina Complete Health and WellCare of North Carolina Combine to Form Provider-Led Managed Care Organization: Carolina Complete Health
  • Findings from National Center for HIV Broaden Understanding of HIV/AIDS (Implementation of health insurance navigation for racial/ethnic minority men who have sex with men presenting for community-based HIV testing): Immune System Diseases and Conditions – HIV/AIDS
  • No qualifying bids, so State Health Plan will restart search for new insurer
More Health/Employee Benefits News

Life Insurance News

  • Lifetime income is the missing link to global retirement security
  • AM Best Affirms Credit Ratings of ReliaStar Life Insurance Group Members
  • Voya Financial announces expanded Employee Assistance Program services with TELUS Health
  • How improving the customer experience can build trust
  • AI won’t solve the workforce crisis; here’s what will
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

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

FEATURED OFFERS

Protectors Vegas Arrives Nov 9th - 11th
1,000+ attendees. 150+ speakers. Join the largest event in life & annuities this November.

An FIA Cap That Stays Locked
CapLock™ from Oceanview locks the cap at issue for 5 or 7 years. No resets. Just clarity.

Aim higher with Ascend annuities
Fixed, fixed-indexed, registered index-linked and advisory annuities to help you go above and beyond

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Leveraging Underwriting Innovations
See how Pacific Life’s approach to life insurance underwriting can give you a competitive edge.

Bring a Real FIA Case. Leave Ready to Close.
A practical working session for agents who want a clearer, repeatable sales process.

Press Releases

  • RFP #T01825
  • RFP #T01825
  • RFP #T01525
  • RFP #T01725
  • Insurate expands workers’ comp into: CA, FL, LA, NC, NJ, PA, VA
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.
Insurance News | InsuranceNewsNet