Gavin Newsom proposes $2,000 asset eligibility test to control soaring state Medi-Cal costs

6 days ago 5

California Gov. Gavin Newsom is proposing an "asset test" for seniors to beryllium eligibility for Medi-Cal healthcare benefits for low-income Californians successful effect to a fund shortfall. To qualify, radical would person to person little than $2,000 successful assets to qualify.

The governor said the reasons for the accrued costs see "higher wide enrollment, pharmacy costs and higher managed attraction costs."

In the past 10 years, helium said, Medi-Cal costs person accrued by $20.5 billion. 

NEWSOM PROPOSES FREEZE ON ALLOWING ADULT ILLEGAL IMMIGRANTS TO JOIN CALIFORNIA MEDICAID PROGRAM

Newsom has besides projected freezing caller enrollment for adults successful the country illegally arsenic a mode to chopped Medi-Cal costs.

"Some of the astir important contributing factors to this maturation are the COVID-19 continuous sum request and the implementation of large argumentation changes specified arsenic the afloat elimination of the plus trial for older adults and the full-scope enlargement to each income-eligible Californians, careless of immigration status," helium wrote. 

The assets included successful the trial would beryllium salary, wealth successful a slope account, currency connected hand, a 2nd car, location worth and status funds. Applicants with much than $2,000 successful assets would beryllium ineligible for Medi-Cal.

Gavin Newsom raising his eyebrow

California Gov. Gavin Newsom is proposing an "asset test" to beryllium eligibility for Medi-Cal healthcare benefits for low-income Californians successful effect to a fund shortfall.  (Andrew Harnik/Getty Images)

In his 2025-26 fund proposal, Newsom said Medi-Cal costs person accrued starkly and proceed to outpace revenues. The programme outgo $37.6 cardinal implicit the past year, and the outgo is expected to summation by $10 cardinal implicit the adjacent twelvemonth without cuts.

Along with low-income adults, galore seniors and radical with disabilities usage Medi-Cal benefits that see in-home attraction services. 

For decades earlier 2024, the plus trial was required for seniors to beryllium their eligibility for Medi-Cal, and Newsom’s connection would reinstate it. 

Newsom wrote that the plus trial would prevention $94 cardinal this fiscal twelvemonth and $791 cardinal by the 2028-29 fiscal year. 

LAWMAKERS IN DEEP BLUE STATE DEMAND AUDIT OVER SKYROCKETING HEALTHCARE COSTS: 'ALARMING NATURE'

Newsom talking to reporters

Newsom wrote that the plus trial would prevention $94 cardinal this fiscal twelvemonth and $791 cardinal by the 2028-2029 fiscal year.  (Chip Somodevilla/Getty Images)

Disability Rights California, a nonprofit, said the connection would bash "tremendous harm" to Californians. 

ILLEGAL IMMIGRANT HEALTHCARE COSTS IN BLUE STATE TRIGGERS INTENSE BUDGET DEBATE

"While we recognize the world of fund shortfalls and that cuts volition sometimes beryllium necessary, the priorities and world of this May revision are adjacent worse than what we imagined," the radical said successful a statement. "It demonstrates a continued willingness connected the portion of the politician to sacrifice the wellness and quality services of California’s people, peculiarly the disabled, poor, and aged populations of this abundant state."

The radical added that the plus trial "effectively demands utmost poorness successful bid to proceed receiving critical healthcare." 

Senior consulting with healthcare worker

For decades earlier 2024, the plus trial was required for seniors to beryllium their eligibility for Medi-Cal, and Newsom’s connection would reinstate it.  (Getty)

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The politician defended his proposals, according to the Los Angeles Times, saying, "None of this is the benignant of enactment you bask doing, but you’ve got to bash it. We person to beryllium responsible. We person to beryllium accountable. We person to equilibrium the budget."

Fox News Digital has reached retired to Newsom’s bureau for comment. 

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