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Committee discusses Medi‑Cal changes, HR1 mitigation and immigrant coverage delays
Summary
Department of Finance and committee members described Medi‑Cal adjustments and funding to delay or mitigate federal HR1 cuts; speakers highlighted a $1.3 billion general fund augmentation for Medi‑Cal to implement HR1 requirements and temporary delays to some adult dental and benefit changes.
Members and DOF staff outlined how the three‑party agreement addresses prospective federal HR1 changes and Medi‑Cal program design. Jessica Holmes said the budget includes $1.3 billion general fund in 2026–27 for Medi‑Cal to implement HR1 requirements and a $300,000,000 ongoing healthcare affordability reserve to expand subsidies for Covered California enrollees.
Throughout the hearing members repeatedly emphasized efforts to delay or soften the most harmful cuts slated under HR1, including delaying certain Medi‑Cal general fund solutions for one year and preserving dental and other benefits for this budget year. Public commenters from Health Access, the California Immigrant Policy Center and other advocacy groups thanked the Assembly for delaying cuts that would immediately remove full‑scope coverage for some humanitarian immigrants and urged continued advocacy to restore coverage permanently.
Committee members pressed DOF and LAO on the scale of mitigation funding and on counties' exposure to uncompensated indigent care if coverage losses proceed in future years. DOF and county officials said additional local and federal solutions may be required as HR1 implementation continues to unfold.
