New LAO Report Examines Future of Medi-Cal Among Massive Changes

The Legislative Analyst’s Office (LAO) has published a new and comprehensive report, “Considering Medi-Cal in the Midst of a Changing Fiscal Policy Landscape.” Recent state policy changes to Medi-Cal, compounded by significant eligibility and financing changes enacted through the federal passage of H.R. 1, will result in the loss of billions of dollars to California’s Medicaid system, new workload pressures, and over a million Californians with lost Medi-Cal coverage.

The LAO’s report lays out different points for the Legislature to consider as it relates to balancing Medi-Cal eligibility, financing, and benefits in future years. Notably, the report examines potential state responses to provide care and coverage for the increasing number of people that will lose health care coverage as a result from the recent and upcoming policy changes.

In addition, the LAO’s report appropriately recognizes that counties, like the state, face significant fiscal challenges and are not positioned to absorb additional cost shifts. Specifically, county indigent care programs were pared down in response to coverage expansion initiatives over the last decade, and funding that was previously used to maintain these services were realigned to other programs.

The full report is available on the LAO’s website.