A group of California Republican lawmakers are seeking a formal audit of the state's Medicaid program, known as Medi-Cal, after the law came into effect last year and the costs rose significantly after illegal immigrants were able to register.
The MEDI-CAL program was initially expected to cost $6 billion this year, making it a budget of $2.8 billion. Since then, the governor's office has demanded $6.2 billion on two separate loans.
“On March 12, 2025, the governor notified Congress that the medical was insolvent and that it was unable to pay the health care provider for all its obligations,” the letter states.
Newsom is seeking another $300 million for the state's health program, overwhelmed by illegal immigration
California Governor Gavin Newsom's upcoming podcast is the second podcast he is involved in. (Getty Images)
“Despite the surprising nature of this issue, the governor has failed to provide an explanation for why Medi-Cal costs are far greater than the budget.
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Specifically, the letter asks what the program includes “future estimates for undocumented immigrant registrations,” and what “cost control strategies” to ensure that access to health care in California is not harmed.
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Illegal immigrants will wait for a greet at the southern border on May 23, 2024. (Bill Melgin/Fox News)
Lawmakers also want answers as to why the cost forecast was incorrect.
The letter was led by Republican Rep. Carl DeMaio. Carl DeMaio issued a review earlier this year after questioning a state budget official who amplified spending issues. Congressional Republican leader James Gallagher and Republican officials. Kate Sanchez, Leticia Castillo, Stan Ellis, Tom Lucky, Philip Chen, Heath Flora, David Tanguipa
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Councillor Carl Demaio. (CQ/Getty)
Gov. Gavin Newsom previously said that illegal immigrants allowed to register with MEDI-CAL were a “partial” part of the issue, but his office argues that the overall healthcare costs have increased Medicaid program costs, which are expected in other states.
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“With a tough financial choice, in collaboration with Protem McGuire and Speaker Ribas, Governor Newsom will evaluate proposals to curb long-term spending, including medical, while working to protect California's core and social services.”
Newsom's office could not immediately comment.
