{"id":2437503,"date":"2025-05-21T14:18:01","date_gmt":"2025-05-21T18:18:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-house-gop-budget-could-cost-medi-cal-nearly-40-billion-per-year-bankrupt-ca-washington-examiner\/"},"modified":"2025-05-21T14:21:55","modified_gmt":"2025-05-21T18:21:55","slug":"analysis-house-gop-budget-could-cost-medi-cal-nearly-40-billion-per-year-bankrupt-ca-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-house-gop-budget-could-cost-medi-cal-nearly-40-billion-per-year-bankrupt-ca-washington-examiner\/","title":{"rendered":"Analysis: House GOP budget could cost Medi-Cal nearly $40 billion per year, bankrupt CA &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-house-gop-budget-could-cost-medi-cal-nearly-40-billion-per-year-bankrupt-ca-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2437503&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>California Governor Gavin Newsom has criticized congressional proposals that threaten to considerably cut Medicaid funding, perhaps costing the state nearly $40 billion annually. These proposals include reducing the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cpac-warns-backing-trump-is-a-line-in-the-sand-washington-examiner\/\" title=\"CPAC warns: Backing Trump \u2018is a line in the sand\u2019 - Washington Examiner\">federal match rate<\/a> for states providing non<a href=\"https:\/\/amzn.to\/3YuVZYV\" >-emergency health care<\/a> to illegal immigrants and imposing work, volunteer, or school requirements for able-bodied Medicaid recipients. Newsom warned that such changes could lead to millions losing coverage and jeopardize the state&#8217;s healthcare infrastructure. The analysis highlights concerns over the potential loss of state and federal revenue and the impact on california&#8217;s budget, which is already facing significant deficits. The proposed federal changes could exacerbate financial strains, requiring ample budget cuts or tax increases to maintain existing Medi-Cal services.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Analysis: House GOP budget could cost Medi-Cal nearly $40 billion per year, bankrupt CA<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2127524\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; California Gov. Gavin Newsom slammed congressional&nbsp;<strong><a href=\"https:\/\/d1dth6e84htgma.cloudfront.net\/05_13_2025_FCMU_Memorandum_UPDATED_55a74a132a.pdf\" target=\"_blank\" rel=\"noopener\" title=\"\">proposals<\/a><\/strong>&nbsp;that would, among other things, cut Medicaid funding to states that provide taxpayer-financed non-emergency health care to illegal immigrants.<\/p>\n<p>The governor was also critical of congressional proposals to require able-bodied Medicaid recipients to work, volunteer or be in school part-time, and limit states&rsquo; abilities to tax Medicaid providers higher to engineer increased federal Medicaid funding.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/3418545\/ice-busts-armenian-crime-syndicate-california-florida\/\">ICE busts Armenian crime syndicate operating in California, Florida<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/house\/3418465\/house-freedom-caucus-gop-leadership-trump-broker-peace\/\">Trump steps in to broker peace between Freedom Caucus and GOP leadership<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/3418470\/san-francisco-mayor-daniel-lurie-homeless-shelter-requirement\/\">San Francisco mayor to remove requirement for homeless shelters in every district<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>A cumulative analysis from The Center Square has found that these three proposals could cost the state nearly $40 billion per year in lost state and federal revenue.<\/p>\n<p>&ldquo;If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight,&rdquo; said Newsom in a statement.&nbsp;<\/p>\n<p>Newsom&rsquo;s office&nbsp;<strong><a href=\"https:\/\/www.gov.ca.gov\/wp-content\/uploads\/2025\/05\/newsom-medicaid-impacts-memo.pdf\">says<\/a><\/strong>&nbsp;the proposal to cut the Affordable Care Act Medi-Cal expansion federal match rate from 90% to 80% for states that enroll illegal immigrants in Medicaid for non-emergency care would cost $4.4 billion per year. Emergency care would remain unaffected.<\/p>\n<p>Newsom&rsquo;s&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/california\/article_71041414-90e6-4402-93e9-faa1000ab507.html\">updated<\/a><\/strong>&nbsp;May budget includes $12.1 billion for illegal immigrant Medi-Cal, for approximately for 1.6 million individuals&mdash; a sum that slightly exceeds the state&rsquo;s $11.9 billion projected budget shortfall. If Congress adopts this proposal, the state&rsquo;s cost for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/steve-scalise-blasts-biden-order-allowing-covid-vaccine-to-illegal-immigrants\/\" title=\"Steve Scalise Blasts Biden Order Allowing Covid Vaccine To ...\">allowing illegal immigrants<\/a> to enroll in Medi-Cal could rise to $16.5 billion this year.&nbsp;<\/p>\n<p>Newsom&rsquo;s office also said the proposed 2029 requirement that able-bodied working-age adults on Medicaid work, volunteer or go to school at least 80 hours per month or be &ldquo;kicked off their Medi-Cal &hellip; could lead to a loss of up to $22.3 billion in federal funding and cause up to 3 million people in California to lose coverage.&rdquo;&nbsp;<\/p>\n<p>This data suggests one in 13 Californians, including children and the elderly, are able-bodied adults enrolled in Medi-Cal and not engaged in half-time education, volunteering or work.<\/p>\n<p>While Newsom&rsquo;s office did not specify exact costs, the congressional proposal is to require that taxes on managed care provider organizations be based uniformly on the number of individuals whose care they manage. That would be instead of California&rsquo;s practice of imposing a higher tax on providers for their Medicaid enrollees.<\/p>\n<p>California voters passed Proposition 35 last year, which the state-funded Legislative Analyst&rsquo;s Office&nbsp;<strong><a href=\"https:\/\/voterguide.sos.ca.gov\/propositions\/35\/analysis.htm\" target=\"_blank\" rel=\"noopener\" title=\"\">says<\/a><\/strong>&nbsp;will generates about $7 billion to $8 billion per year via a permanent tax on managed care provider organizations beginning in 2027. Rules outline how the funds are broadly spent within Medi-Cal, and Prop. 35 requires compliance with federal rules on MCPO taxes.<\/p>\n<p>The LAO estimated the tax would generate about $4 billion more in Medi-Cal funding each year after accounting for transfers within the program due to the tax, with half the funding coming from more federal reimbursement due to higher costs imposed by the tax. The LAO said it found &ldquo;by charging the health plan tax, the state can receive more federal funding.&rdquo;<\/p>\n<p>The Trump administration&rsquo;s Centers for Medicare &amp; Medicaid Services has proposed a rule titled &ldquo;Preserving Medicaid Funding for Vulnerable Populations &ndash; Closing a Health Care-Related Tax Loophole,&rdquo; which closely mirrors the congressional proposal.<\/p>\n<p>CMMS&nbsp;<strong><a href=\"https:\/\/www.cms.gov\/newsroom\/fact-sheets\/preserving-medicaid-funding-vulnerable-populations-closing-health-care-related-tax-loophole-proposed\" target=\"_blank\" rel=\"noopener\" title=\"\">says<\/a><\/strong>&nbsp;its proposed rule would &ldquo;end states&rsquo; ability to exploit a health care-related tax loophole currently used by seven states to generate billions in federal Medicaid payments &mdash; without contributing their fair share or expanding care for Medicaid enrollees.&rdquo; CMMS outlines how &ldquo;after imposing the tax disproportionately on Medicaid plans or providers, the states reimburse them with federal funds, while avoiding any state financial cost.&rdquo;<\/p>\n<p>CMMS says this allows &ldquo;states to use the surplus for other purposes &mdash; including the expansion of healthcare coverage for illegal immigrants,&rdquo; which &ldquo;effectively means federal money is financing these other interests, instead of enhancing the state Medicaid program.&rdquo;<\/p>\n<p>The congressional proposal would solidify this rule change by requiring the aforementioned uniformity, and thus rendering Prop. 35 noncompliant and depriving California of the estimated $7 billion to $8 billion on MCPO tax revenue, and additional $2 billion per year or so in estimated higher federal Medicaid funding.<\/p>\n<p>Should the congressional proposals pass, the state could effectively lose a combined $36.7 billion per year in federal and state revenues. This would necessitate some combination of substantial budget cuts elsewhere, or higher taxes to maintain Medi-Cal services and obligations at current levels.<\/p>\n<p>In late 2024, the LAO already <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pennsylvanias-1-1b-education-spending-projections-questioned\/\" title=\"Doubts arise over Pennsylvania&#039;s .1B education spending estimates\">anticipated budget deficits<\/a> in the coming years rising to $30 billion per year,&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/california\/article_dff26146-a797-11ef-8806-1758912f94a3.html\">saying<\/a><\/strong>&nbsp;the state has &ldquo;no capacity&rdquo; for new spending, suggesting the state has little leeway to make such changes.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_2127524\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"2127524\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>House GOP budget may cost Medi-Cal $40 billion yearly, warns Newsom<\/p>\n","protected":false},"author":1,"featured_media":2437504,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/12\/iStock-1490413693-1024x768.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[55656,32455,55655],"class_list":["post-2437503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-california-budget","tag-house-gop","tag-medi-cal"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/12\/iStock-1490413693-1024x768.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2437503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2437503"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2437503\/revisions"}],"predecessor-version":[{"id":2437507,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2437503\/revisions\/2437507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2437504"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2437503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2437503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2437503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}