L.A. Care Health Plan, the nation’s largest publicly operated health plan, provides access to health care to more than 2.3 million Angelenos covered by Medicaid, known as Medi-Cal in California. As a health plan with deep roots in Los Angeles County, where nearly 1 out of every 2 residents is covered by the Medi-Cal program, L.A. Care is deeply concerned about the proposed federal Medicaid cuts currently being discussed in Congress.
Medicaid stands as a cornerstone of the American safety-net system, providing vital health coverage to 78.5 million Americans – including 15 million Californians. This program represents our nation's commitment to supporting families, children, seniors, and people with disabilities, protecting workers, and ensuring healthier communities overall.
As of this writing, the budget passed by the House of Representatives would cut an estimated $698 billion from Medicaid. Budget cuts of this magnitude will result in widespread loss of healthcare access, destabilize safety net systems, and be detrimental our state and local economies.
In California alone, preliminary estimates indicate the proposal would result in cuts of $10 to $20 billion on a yearly basis and approximately $90-100 billion in cuts over the next decade. If this happens, California will be forced to dramatically reduce coverage, benefits, and funding – significantly compromising Medi-Cal as a lifeline for Californians.
Medicaid is more than a mere budget expenditure – it is a strategic investment in America's human capital and infrastructure. The program's demonstrated record of efficiency, support among American voters, combined with its measurable impacts on our healthcare system and economy, make a compelling case for its protection. The bottom line is clear: a strong Medicaid program creates jobs, strengthens families, and fuels economic growth.
The House-passed budget also negatively impacts individuals who receive coverage through the Affordable Care Act marketplaces, including Covered California. Covered California is a lifeline for more than two million Californians who make too much to be eligible for Medi-Cal but don’t receive coverage through their employer. The proposed budget would impose significant and unnecessary burdens on consumers in accessing health coverage, limit eligibility for enrollees to receive financial help to make health insurance more affordable, and reverse the progress that Covered California has made over the last 13 years in increasing the number of insured and decreasing health disparities.
At a very high level, California estimates that 30 percent of Covered California marketplace enrollees and 23 percent of Medi-Cal members will lose coverage as a direct result of these proposed changes.
We recognize that Washington faces tough budget decisions, but balancing the budget should not come at the expense of children, working families, seniors, and people with disabilities. Healthcare is not a partisan issue – it’s a human one.