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DHCS projects higher Medi‑Cal costs driven by immigration‑status enrollment, redeterminations and pharmacy spending
Summary
DHCS presented updated Medi‑Cal local assistance estimates showing increases in total funds and general fund needs for the current and budget years, driven by higher enrollment among beneficiaries with pending immigration status, increased pharmacy expenditures and redetermination costs from the public‑health unwinding.
Department of Health Care Services presented the November 2024 Medi‑Cal local assistance estimate to the Senate Budget Subcommittee. For the current year DHCS reported an updated projection of $174.6 billion in total Medi‑Cal spending, including $37.6 billion in state general fund, reflecting an increase of about $13.7 billion in total funds and $2.6 billion in general fund compared with the 2024 Budget Act.
DHCS attributed current‑year increases primarily to higher‑than‑anticipated enrollment for persons…
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