How do you feel about California needing to borrow $3.44B to cover a budget hole in state Medicaid program?

[Cubus]

California will need to borrow $3.44 billion to close a budget gap in the state’s Medicaid program, Newsom administration officials told lawmakers. That’s the maximum amount California can borrow, and will only be enough to cover bills for Medi-Cal — the state’s Medicaid program — through the end of the month

The budget pressure will bring fresh scrutiny to the state’s coverage of undocumented immigrants, which is costing more than first budgeted.

Originally, the state estimated it would cost around $5.8 billion in 2024-25 to insure that population. But one year after the program has been fully implemented, it’s turning out to be more expensive than anticipated.

Gov. Gavin Newsom’s current budget proposal estimates the state will shell out $8.4 billion to cover undocumented immigrants in Medi-Cal in 2024-2025, and $7.4 billion in 2025-2026.

California has been covering undocumented children on Medi-Cal since 2016. Under Newsom, the program has slowly expanded, to young adults in 2020, older adults in 2022 and then all ages in 2024.

Source: https://www.politico.com/news/2025/03/12/california-medicaid-shortfall-00227904

[Syntosi]

This is not particularly surprising. For starters, medicine prices has skyrocketed so any estimates made previously would be wrong by A LOT. As long as you can't control the cost of healthcare AKA single payer and price controls on medicine then this is going to keep happening. Capitalism is really, REALLY good at squeezing you and the government for money.

[exitseven]

Who would be crazy enough to loan them the money? The state will probably be in receivership soon.

[exitseven]

Thanks for the MHO😎

[Cubus]

you're welcome

[NaultD]

Everything medical is profiteering. None of the profits go to research and development but funding comes from the government so in theory the tax are the executive producer of all medical advances and should take pride in that.

So they take our tax funded resource and make a patent. Basically take $3 worth of components and 5 minutes of expert labor to mass produce medication and charges 10,000x because they have exclusive rights from our tax dollars.

How do we solve this? Single payer health care just like the rest of the globe. These profiteering scams don't work globally so usa being the last to play ball gets left holding the global bag of bills.

[Abbycado]

How about you worry about your own country’s affairs, instead of constantly worrying about ours?

[Cubus]

As the global hegemon and exporter of social culture by movies, tv series etc, what happens in USA affects my country a lot.

[Abbycado]

"social culture by movies, tv series etc" none of which you have to consume. That is a choice.

And what in the actual fuck does that have to do with California's budget? How does that affect you? It doesn't.

[lightbulb27]

borrow from where? no surprise.

I know where they can get it... Stacy Abrams... she got a few billion, or almost got...

[DrPepper12]

Take it from the federal military budget. Solved!

[jahaims]

I'm okay with cutting all federal funding for California.