May revision would limit full‑scope Medi‑Cal for some adults, impose premiums and narrow benefits

The California Assembly Budget Subcommittee No. 1 on Health heard testimony and public comment May 20 on the governor's May revision proposals that would restrict full‑scope Medi‑Cal coverage for adults the administration describes as having “unsatisfactory immigration status.” The administration told the committee the proposals are intended to help close an estimated $12 billion general‑fund shortfall.

In an opening statement, Chair Dawn Addis said the subcommittee would focus on fiscal stewardship and “do this with empathy and a commitment to every single Californian,” while warning that the May revision “appears to be balanced on the backs of the poor, the elderly, immigrants, women, and frontline health care workers.”

Why it matters: The administration’s package would directly change who can enroll in and keep full‑scope Medi‑Cal, add a premium for a class of adults, and reduce or eliminate optional benefits. The Legislative Analyst’s Office (LAO) and Department of Finance told members they understand the state faces unusual federal and revenue uncertainty; multiple advocates and health providers said the changes would reduce access, trigger loss of federal matching dollars and threaten clinic viability.

Administration overview and key proposals

Michelle Baass, director of the California Department of Health Care Services (DHCS), summarized the department’s role and the size of the program: Medi‑Cal covers nearly 15 million Californians and DHCS’s May revision request includes about $200.6 billion total funds and $45.2 billion general fund in 2025–26. Baass said the administration is proposing several options aimed at reducing general‑fund…