Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Health Policy topic
No spam. Unsubscribe anytime.
Health omnibus outlines Medi‑Cal eligibility and benefit changes; advocates warn of coverage loss for immigrants
Summary
The Assembly Budget Committee heard Department of Finance staff describe health omnibus trailer‑bill provisions that would freeze enrollment for full‑scope Medi‑Cal expansion for some adults and introduce premiums and benefit changes for adults with unsatisfactory immigration status.
Department of Finance staff outlined the health omnibus trailer bill (AB/SB 116) during the Assembly Budget Committee hearing. The proposal described in committee would, among other measures, institute a freeze on new enrollment for full‑scope Medi‑Cal expansion for adults 19 and older effective Jan. 1, 2026; assess a $30 monthly premium per individual for adults aged 19–59 with unsatisfactory immigration status beginning July 1, 2027; and eliminate dental benefits for adults 19 and older with unsatisfactory immigration status effective July 1, 2026.
The presentation also detailed other program changes in Medi‑Cal: requiring prior authorization to access drugs removed from contracted drug lists effective Jan. 1, 2026; reinstating an asset test for certain Medi‑Cal applicants and members effective Jan. 1, 2026 (an asset limit of $130,000 for an individual and $65,000 for each additional household member for those whose eligibility is not based on modified adjusted gross income methods); and new regulatory directives for acute psychiatric hospital staffing ratios.
Why it matters: committee members and public commenters said the package would reduce state exposure to federal funding uncertainties, but advocates and immigrant‑serving groups warned it would create a two‑tier system of coverage and cause eligible people to lose care. Several community and legal‑services organizations urged the Legislature to restore access or to pursue targeted revenue measures instead of benefit reductions.
Advocates’ concerns and committee follow‑up
Health‑care advocates and immigrant‑rights groups who testified at the hearing said the freeze and premiums threaten access to care and disproportionately affect immigrant communities already facing federal enforcement pressures. Health Access California said the enrollment freeze and premiums “will result in people who lose coverage due to inability or inability to pay or other paperwork reasons, losing further coverage.” Western Center on Law and Poverty and other groups urged revenue options instead of cuts.
Department of Finance and legislative staff said they were working on trailer‑bill language that includes implementation timelines and regulatory direction; staff also told members they would return with technical clarifications.
Ending: Committee members indicated they want greater detail on implementation, outreach and vendor accountability for children’s behavioral health services and asked the Department of Finance and health agencies for follow‑up information before floor votes.
