California Republicans are calling for an audit into California’s $6.2 billion shortfall over its medical safety net program, Medi-Cal.
GOP lawmakers sent a letter to the chair of the Join Legislative Audit Committee asking for an investigation into the shortfall.
The backstory: Last month, Gov. Gavin Newsom told lawmakers that the state needed to borrow $3.44 billion from the federal government to fund Medi-Cal.
- Part of the reason for the shortfall is due to the state covering illegal immigrants under Medi-Cal, which had an initial estimated annual cost of $3 billion. The actual cost rose to $8.4 billion, per Newsom’s budget proposal.
- Shortly after revealing the need for a loan, Newsom also asked state lawmakers to approve an additional $2.8 billion to maintain Medi-Cal operations through the end of the fiscal year, resulting in a $6.2 billion shortfall.
- State spending through the General Fund has nearly doubled over the last six years to total $42.1 billion, with total spending growing by 84.2 percent to $188.1 billion.
The big picture: Republican lawmakers are asking for the audit to address several questions, including what were the primary cost drivers of Medi-Cal’s overruns and why Newsom’s administration failed to forecast the shortfall.
- Lawmakers are asking for an audit to determine what the future estimates are for the enrollment of illegal immigrants in Medi-Cal and how the inclusion of illegal immigrants has impacted access to providers and the availability of appointments for those already covered under Medi-Cal.
- Further, they are asking what cost containment strategies are being considered to stabilize Medi-Cal’s budget and how those strategies would impact access to care.
What they’re saying: “Medi-Cal is billions of dollars over budget with no clear explanation or accountability from the Governor’s office,” Asm. Carl DeMaio (R–San Diego) said. “Taxpayers deserve transparency – and a full audit to determine how this happened and how we can fix this vital program Californians rely on for health care.”
- Minority Leader James Gallagher (R–East Nicolaus) added, “Democrats’ bad accounting has brought Medi-Cal to the breaking point, making it harder for patients to get in to see a doctor. We owe it to Californians – and to the vulnerable people who depend on this program – to make sure Medi-Cal is meeting their needs.”
