A recent analysis by experts at UC Berkeley has raised concerns about the potential impact of proposed federal Medicaid cuts on California. The plan, which was approved by the U.S. House of Representatives and is now with the Senate, could result in millions of low-income Californians losing their health care coverage.
The report from the UC Berkeley Labor Center, authored by Miranda Dietz, Nari Rhee, and Laurel Lucia, highlights that nearly 40% of Californians depend on Medi-Cal for health care. An external study cited by the researchers suggests that between 2.3 million to 3.5 million Medi-Cal recipients might be affected.
Dietz emphasized the importance of Medi-Cal in California’s health care system: “We know just how important Medi-Cal is for our state, what an integral part of our health care system it is — from the coverage it provides to millions of people, to the support it gives to health care providers and health care workers, and then just the overall impact that those federal dollars have on our economy.”
The budget proposal includes requirements for Medicaid recipients to work or attend school and regularly document their activities. However, according to the Labor Center report, most adults receiving Medi-Cal are already employed or in school. The new reporting requirements could lead to confusion and potential loss of coverage.
The Republican-backed measure introduces stricter conditions than ever before on federal Medicaid programs. It requires recipients to document 80 hours per month of work or schooling, with certain exemptions like parents of minor children or individuals with disabilities.
Despite these exemptions, many adults at risk are already working. A Kaiser Family Foundation study found that 63% of adult Medi-Cal recipients have jobs while another 29% cannot work due to caregiving responsibilities or personal limitations.
Dietz criticized these proposals as adding unnecessary bureaucracy: “Requiring people to renew their eligibility every six months rather than every 12 months — that’s twice the amount of paperwork, and twice the chance for people to fall off because something gets lost in the mail.”
The report also notes similar approaches in states like Arkansas and New Hampshire resulted in significant numbers losing coverage due to administrative challenges.
Dietz warned about broader implications if rural hospitals lose funding: “Rural hospitals are deeply reliant on Medi-Cal for their funding… That would make it harder for them to stay open or shut down services.”
She concluded by stressing Medicaid’s role in saving lives: “Very simply, Medicaid saves lives… You’re less likely to die.” The Congressional Budget Office estimates over $800 billion in cuts over ten years under this plan.
California Governor Gavin Newsom has also proposed scaling back some benefits amid these federal discussions.
