Newsom proposes to freeze Medi-Cal enrollment for undocumented immigrants - 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
May 14, 2025 Newswires
Share
Share
Post
Email

Newsom proposes to freeze Medi-Cal enrollment for undocumented immigrants

Kristen Hwang & Ana B. Ibarra, CalMattersSanta Ynez Valley News

A year after granting Medi-Cal access to low-income immigrants without legal status, Gov. Gavin Newsom is proposing to freeze enrollment of new recipients and charge premiums in a move expected to save the state more than $5 billion.

Under Newsom's proposal announced today, Medi-Cal — the state's health insurance program for low-income people and those with disabilities — beginning in 2026 would no longer accept new enrollees 19 and older who lack permanent legal status.

The 1.6 million immigrants already signed up would not lose their Medi-Cal coverage, and children could still enroll. All undocumented Californians would still be covered for emergency medical and pregnancy care — so-called "limited scope" coverage that is paid for with federal dollars. But those who don't enroll before January 2026 would be uncovered for other medical expenses, such as prescription drugs and doctor's visits.

Before the changes could go into effect, the California Legislature would have to approve them in the state budget. Democratic lawmakers have so far largely balked at making major cuts to Medi-Cal coverage for immigrants.

California's Medi-Cal shortfall hits $6.2 billion with 'unprecedented' cost increases

State Sen. Scott Wiener, a San Francisco Democrat and chair of the Senate budget committee, said at a luncheon last month that despite fiscal uncertainty, Senate Democrats want to ensure healthcare coverage for immigrants in California.

"These are folks who are working, paying taxes. They should have access to health care," Wiener said.

Newsom also proposed that adults with "unsatisfactory immigration status" should pay a $100 monthly premium starting in 2027. Those are people whose immigration status makes them ineligible for federal Medicaid, including those with lawful status. The $100 premium is less than the average subsidized premium paid under Covered California, according to the governor's office.

Together these moves would save the state $5.4 billion by 2028-29, Newsom's office said, helping to address the state's projected $16 billion deficit.

Newsom's office said the deficit required "tough decisions" but that the governor remained committed to protecting immigrants.

"These changes are designed to preserve that commitment, protect coverage for millions of Californians, and preserve the strength of our values and health care system," according to the governor's fact sheet.

The decision is a bruising blow to Newsom, who ran for governor on the promise of universal health care. California was the second state after Oregon to offer full-scope health insurance to all immigrants without legal status.

Newsom's office blamed wide-ranging tariffs imposed by the Trump administration for weakening the state's expected revenues, but the Medi-Cal program was already experiencing cost problems related to growing enrollment and increasing costs of prescription drugs.

In March, the administration reported a $6.2 billion shortfall in its Medi-Cal budget, and had to appropriate additional funds to pay providers through the end of June.

The Department of Health Care Services, which oversees Medi-Cal, cited a number of reasons for exceeding its budget, including that it was spending about $2.7 billion more than anticipated on people without legal status.

The state spends about $8.5 billion a year from the general fund to cover immigrants who are in the country without legal authorization, according to the Newsom administration's estimates.

The request for additional dollars was criticized by Republicans in the Legislature, who say the governor and Democrats over-promised on what the state could afford.

Newsom's call to limit enrollment comes as Congress is proposing major spending reductions to the federal Medicaid program. (Medi-Cal is California's name for Medicaid.)

One proposal aims to penalize states that cover unauthorized immigrants. That penalty would come in the form of reduced federal funding for the Affordable Care Act expansion population — largely able-bodied adults without children. If enacted, that penalty could cost California about $3.2 billion a year in federal funding, according to the Center on Budget and Policy Priorities.

CalMatters reporter Yue Stella Yu contributed to this story.

California's fourth-ranked economy is also tops in unemployment, poverty and deficits | Dan Walters

Older

Sweeping Insurance Bill Advances Through The Senate Insurance Committee

Newer

Best’s Market Segment Report: AM Best Maintains Outlook on Philippine Non-Life Insurance Segment at Stable

Advisor News

  • Gov. Kim Reynolds signs health insurance premium tax increase into law
  • Gov. Reynolds signs temporary tax hike to address Iowa Medicaid shortfall
  • Temporary tax hike to fill Medicaid gap heads to governor
  • Iowa Senate sends health insurer tax increase to governor’s desk
  • Temporary tax hike to fill Iowa Medicaid gap heads to governor’s desk
More Advisor News

Annuity News

  • Corebridge, Equitable merge to create potential new annuity sales king
  • LIMRA: Final retail annuity sales total $464.1 billion in 2025
  • How annuities can enhance retirement income for post-pension clients
  • We can help find a loved one’s life insurance policy
  • 2025: A record-breaking year for annuity sales via banks and BDs
More Annuity News

Health/Employee Benefits News

  • Wyden, Merkley slam 'baseless' federal investigation into Oregon abortion coverage requirement
  • I Didn’t Look Sick Enough — My Painful Battle With Insurance
  • WHAT THEY ARE SAYING: HOSPITAL MONOPOLIES AND RISING PRICES MAKE CARE LESS AFFORDABLE
  • Column: Lawmakers need to listen to people with IDD
  • Anthem again pays restitution and fine over claims delays
More Health/Employee Benefits News

Life Insurance News

  • Corebridge, Equitable Merger Creates $1.5tr Platfrom
  • AM Best Removes from Under Review with Positive Implications and Affirms Credit Ratings of Sompo Seguros Mexico S.A. de C.V.
  • Corebridge, Equitable merge to create potential new annuity sales king
  • Aflac adds new long-term care rider
  • AM Best Affirms Credit Ratings of Nan Shan General Insurance Co., Ltd.
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

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

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

Press Releases

  • RFP #T01725
  • Insurate expands workers’ comp into: CA, FL, LA, NC, NJ, PA, VA
  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
  • YourMedPlan Appoints Kevin Mercier as Executive Vice President of Business Development
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