Officials warn H.R.1 will strip billions from Medi‑Cal, threaten hospitals and Planned Parenthood

A joint informational hearing of the Senate and Assembly health committees heard July 4 that H.R.1 will sharply reduce federal funding for Medi‑Cal, introduce work and paperwork requirements that could remove coverage for millions of Californians, and — through provider‑tax and payment limits — threaten the financial stability of hospitals and safety‑net providers.

State and provider officials said the changes would hit rural and safety‑net facilities especially hard and could force clinic closures and service cuts. Michelle Boss, director of the Department of Health Care Services, told lawmakers, “Medi Cal serves nearly 15,000,000 Californians, roughly 35% of the state. This includes over 5,000,000 children and teens.” She said H.R.1 “puts tens of billions of dollars of federal funding at risk and could result in the loss of coverage for millions of Californians.”

The hearing focused on specific H.R.1 provisions that speakers said would have immediate and phased effects. Boss outlined eligibility and access changes including a work requirement for adults 19–64 that would begin, as written, Jan. 1, 2027; more frequent eligibility redeterminations (every six months…