California Proposes Extending Federal Work Requirements to State-Funded Immigrant Coverage
California's budget proposal would apply federal work requirements from the 2025 Reconciliation Act (OBBBA) to state-funded Medi-Cal coverage for immigrants ineligible for federal Medicaid. The Governor's Office has previously called OBBBA work requirements 'cruel' and 'costly,' projecting coverage losses and increased administrative burden. The proposal would extend these federal mandates to a population funded entirely by state dollars, not subject to federal CMS approval. Stakeholders across California oppose the measure as counterproductive policy.
Managed care organizations operating in California would face expanded work requirement verification and compliance obligations for state-funded immigrant enrollees, increasing administrative costs without federal reimbursement and potentially reducing covered lives.
Managed Care · Finance
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