Lawmakers in deep blue state demand audit over skyrocketing healthcare costs
A group of California Republican lawmakers is calling for a formal audit of the state’s Medicaid program, known as Medi-Cal, due to significant cost overruns following a law that allowed illegal immigrants to enroll. The program is currently $2.8 billion over budget, far exceeding the initial $6 billion estimate for this fiscal year. To cover the shortfall, the governor’s office has requested $6.2 billion in loans.
In a letter to the legislature, Governor Newsom acknowledged that Medi-Cal is insolvent and unable to meet all its healthcare provider obligations. The lawmakers are concerned about the growing costs associated with providing benefits to undocumented immigrants and are questioning the accuracy of cost projections. They are specifically seeking information on future estimates for immigrant enrollment in the program and cost containment strategies to safeguard Californians’ access to healthcare.
The letter was spearheaded by Republican Assemblyman Carl DeMaio, who gained attention earlier this year for highlighting the state’s spending issues. Assembly Republican Leader James Gallagher and several other Republican lawmakers have joined the call for an audit.
Governor Newsom has attributed part of the problem to allowing illegal immigrants to enroll in Medi-Cal, but his office contends that rising healthcare costs nationwide have also contributed to the program’s budget overruns. Newsom’s spokesperson emphasized the need to evaluate proposals to rein in long-term spending while maintaining essential health and social services for Californians.
As the state grapples with tough fiscal decisions, the lawmakers are pressing for transparency and accountability in managing Medi-Cal costs. The audit request underscores the need for a thorough examination of the program’s finances to ensure efficient use of taxpayer funds and sustainable healthcare access for all Californians.
