Assembly Republican Leader James Gallagher has introduced Assembly Joint Resolution 4, seeking a federal audit of California’s Medi-Cal program due to increasing costs that may jeopardize patient care and other state initiatives. Gallagher highlighted concerns with the expansion of Medi-Cal to include illegal immigrants, which he claims has significantly increased expenses, leading to financial strain on hospitals and healthcare providers. Under Governor Newsom, Medi-Cal spending from the state’s General Fund has almost doubled, with a notable portion attributed to the coverage expansion.
The program currently faces a $6.2 billion budget deficit, prompting Newsom’s administration to borrow funds and request additional financial support. Concurrently, proposed budget cuts could impact other critical areas such as the University of California and California State University systems, alongside a $7 billion reduction from the state’s rainy day fund.
Gallagher emphasizes the need for accountability and fiscal stability to ensure that Medi-Cal can continue to support low-income families, seniors, and the disabled effectively. The resolution calls on the federal Centers for Medicare and Medicaid Services to conduct an audit to address these financial challenges and safeguard taxpayer interests. Gallagher serves California’s 3rd Assembly District, which includes parts of Butte, Glenn, Sutter, Tehama, Yuba, and Placer County.
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