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Friday, October 16, 2026 · Updated 6:12 AM MT · 32 stories today
Fri, Oct 16 · 32 stories todayPRO
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State Policy · CAOctober 16, 2026

California's Next Governor Faces Medi-Cal Funding Crisis

California's Medicaid program, Medi-Cal, faces a deepening financial crisis as the state's next governor takes office amid federal funding cuts from the One Big Beautiful Bill Act, expected to cut federal Medicaid spending by over $900 billion over ten years. The state borrowed $4.4 billion in 2025 to keep provider payments flowing, after years of expansions, including coverage for all low-income residents regardless of immigration status, drove Medi-Cal spending from $50 billion to $222 billion annually since 2010. Democratic lawmakers delayed several painful eligibility and benefit cuts until 2027, hoping the next governor would reverse them, but neither gubernatorial candidate, Republican Steve Hilton nor Democrat Xavier Becerra, has offered detailed plans for addressing the shortfall. A state commission co-chaired by former health official Mark Ghaly is exploring ways to modernize the program as advocates debate whether to scale back eligibility or protect coverage despite federal cuts.

Why it mattersState agencies, providers, and the 13.6 million Californians on Medi-Cal face likely eligibility rollbacks, rate pressure, and provider tax restrictions as the state confronts a structural budget gap without a clear gubernatorial plan to close it.

Finance · Managed Care

Read the full article at kffhealthnews.org →
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