A coalition of California Republican legislators has initiated a request for a thorough audit of Medi-Cal, the state’s Medicaid program. This action follows substantial cost increases within the program, which they attribute partly to a recently enacted law permitting enrollment by individuals residing in the state without legal immigration status.
Medi-Cal is currently facing a $2.8 billion budget shortfall, exceeding initial projections that anticipated a $6 billion expenditure for this fiscal year. To address this deficit, the governor’s office has secured two loans totaling $6.2 billion.
As stated in their formal correspondence, “On March 12, 2025, the Governor informed the legislature that Medi-Cal was insolvent and could not continue to pay all of its obligations to healthcare providers.”
The letter further expresses concern, stating, “Despite the alarming nature of this problem, the Governor has failed to provide a clear explanation for why Medi-Cal costs significantly exceed budgeted amounts. There’s considerable apprehension that escalating expenses related to benefits provided to undocumented immigrants are contributing substantially to these cost overruns.”
The lawmakers have specifically requested information regarding:
- Projected enrollment figures for individuals without legal immigration status within the program.
- Strategies aimed at containing costs and ensuring continued access to healthcare services for all Californians.
- An explanation for the inaccuracies in previous cost forecasts.
The request was spearheaded by Assemblyman Carl DeMaio, who gained significant attention earlier this year for questioning a state budget official regarding spending practices. He was joined by Assembly Republican Leader James Gallagher and fellow Republicans Reps. Kate Sanchez, Leticia Castillo, Stan Ellis, Tom Lackey, Phillip Chen, Heath Flora, and David Tangipa.
While Governor Gavin Newsom has acknowledged that allowing enrollment of individuals residing in the state without legal immigration status is a contributing factor, his administration argues that rising healthcare costs across all states have influenced Medi-Cal expenses.
A spokesperson for Newsom stated, “With tough fiscal choices ahead, Governor Newsom, jointly with Pro Tem McGuire and Speaker Rivas, will evaluate proposals to rein in long-term spending — including in Medi-Cal— while working to protect the core health and social services Californians rely on.”
Newsom’s office has not yet responded to additional requests for comment.
