California is set to pioneer a groundbreaking initiative by becoming the inaugural state to extend health insurance coverage to all undocumented adults. Starting January 1, 2024, Medi-Cal, California’s equivalent of the federal Medicaid program for low-income individuals, will be accessible to undocumented immigrants of all age groups.
The state’s new guidelines mark a significant step, making California the sole provider of comprehensive healthcare for undocumented immigrants. Senator María Elena Durazo (D-Los Angeles) expressed the historic nature of this move, stating, “This historic investment speaks to California’s commitment to health care as a human right.”
Governor Gavin Newsom, in May, announced a budget deal with the Legislature that included the expansion of Medi-Cal to cover more undocumented adults. The expansion is anticipated to extend health coverage to approximately 700,000 undocumented residents aged 26 to 49, as outlined by Senator Durazo.
California initiated the inclusion of undocumented children in Medi-Cal in 2015, and in 2019, the eligibility criteria were further broadened to encompass those aged 26 or younger. A law passed in May 2022 permitted undocumented adults aged 50 and older to receive healthcare through the program.
However, the decision to expand the Medi-Cal program has faced criticism. The California Senate Republicans voiced concerns, noting the strain on Medi-Cal, which currently serves 14.6 million Californians—over a third of the state’s population. The addition of 764,000 individuals is expected to exacerbate existing provider access issues, according to the Senate Republicans.
The ambitious Medi-Cal expansion is projected to incur an annual cost of $2.6 billion. California’s budget deficit has concurrently surged to $68 billion, a substantial increase attributed to months of unexpectedly low tax revenues, according to a December analysis from the Legislative Analyst’s Office. This figure far exceeds the $14.3 billion estimate from June.
Despite the impending inclusion of more individuals in the Medi-Cal program starting January 1, a study published in the International Journal of Health Services suggests that immigrants utilize fewer healthcare resources compared to non-immigrants.