More than 1.2 million Californians face possible loss of Medi-Cal coverage as the state resumes normal eligibility reviews and adapts to new federal proposals affecting Medicaid.
End of COVID-19 Special Measures Triggers Coverage Reviews
During the COVID-19 pandemic, annual Medi-Cal eligibility reviews were paused, allowing millions to maintain uninterrupted coverage. This pause officially ended on March 31, 2023, with reviews restarting April 1, 2023.
As a result, millions must now complete renewal paperwork and update their information to continue receiving benefits. Failure to respond or provide required documents can lead to automatic termination of coverage.
Federal Work Requirements Could Impact Millions
Federal proposals may impose work requirements on some adults under 65 without dependent children or disabilities. Eligible individuals would need to show 80 hours per month of work, volunteering, or education to maintain coverage.
Certain groups, such as pregnant women, primary caregivers, and people with disabilities, are expected to be exempt.
However, estimates predict between 1.2 and 3.5 million Californians could lose coverage, largely due to noncompliance or administrative errors, such as missed notices or incomplete forms.
Up to 3 Million Could Lose Healthcare Coverage in California
The resumption of eligibility processes poses significant challenges. Experts warn that 2 to 3 million people may lose Medi-Cal coverage due to common issues with paperwork and communication.
Beneficiaries are urged to contact their local Medi-Cal office promptly and submit all renewal forms on time.
California Eliminates Asset Limits for Certain Medi-Cal Programs
Starting January 1, 2024, California removed asset limits for some Medi-Cal programs, including long-term care and Medicare Savings Programs. This means financial assets like bank accounts and additional properties (beyond the primary home) no longer affect eligibility.
This change simplifies the process and reduces barriers for seniors and others needing long-term care.
Governor Newsom Warns of Medicaid Funding Cuts and Healthcare Risks
Governor Gavin Newsom expressed concerns over federal proposals that could lead to significant Medicaid funding cuts, warning that up to 3.4 million Californians might lose coverage. He highlighted the risk this poses to hospitals and clinics statewide.
California is also grappling with a $12 billion state budget deficit, influencing potential policy decisions. Proposals under consideration include freezing new enrollments for undocumented adults and requiring monthly premiums for some groups starting in 2027.