About Medi-Cal
More than 15 million Californians rely on Medi-Cal, the state’s version of the federal program known as Medicaid, for health insurance. The program acts as California’s health care coverage safety net, with those on Medi-Cal often living in communities with a lack of adequate health care providers. Without significant investments to support providers that deliver health care to California’s most vulnerable, millions living in rural and underserved areas are in jeopardy.
May Budget Revision Avoids Broad Health Care Cuts
What’s happening: Gov. Newsom’s May Revision to the proposed 2026-27 state budget reflects a stronger-than-expected revenue outlook that avoids broad cuts to health care while maintaining a cautious fiscal approach that includes significant changes to Medi-Cal coverage.
Governor’s May Budget Revise Proposes Significant Medi-Cal Coverage Changes, $50 Million for Distressed Hospitals
What’s happening: Today, Gov. Newsom released his May Revision budget proposal, which includes changes to Medi-Cal coverage along with spending cuts and revenue increases to address the long-term structural budget deficit. The proposal also includes $50 million to provide short-term support for distressed hospitals and commits to working with the Legislature on the issue.
Applications for Distressed Hospital Small Grant Program Due May 18
What’s happening: Following the governor’s signing of Assembly Bill 108 (Gabriel, D-Encino) last week, the Department of Health Care Access and Information has established the Distressed Hospital Small Grant Program, which will provide $25 million to assist hospitals in immediate and severe financial distress. HCAI has released the grant application, which is due May 18 by 5 p.m. (PT).
May Budget Revise Approaches with Mixed Fiscal Signals
What’s happening: The governor is expected to release his May budget revise next week, which will kick off budget negotiations with the Legislature ahead of the June 30 deadline.
CHA Warns of Growing Financial Strain on Hospitals at Budget Subcommittee Hearing
What’s happening: On April 6, the Assembly Budget Subcommittee on Health held a hearing to continue its overview of the state’s budget condition and impacts of the One Big Beautiful Bill Act (OBBBA).
Medicaid State-Directed Payments Help Ensure Patient Access to Care
About State-Directed Payments (SDPs) SDPs are additional payments made to health care providers to support Medicaid quality and access goals. The Centers for Medicare & Medicaid Services (CMS) reviews and approves SDPs for each 12-month rating period. Payments to providers are made via managed care organizations (MCOs) and are based on utilization of Medicaid services....
Medicaid Provider Taxes Protect Californians’ Access to Care
Medicaid provider taxes are a cornerstone of the Medicaid financing structure. Without federal revenue generated from these taxes, reimbursement for care provided to patients covered by Medicaid would be woefully insufficient and health care access would be at grave risk. For many hospitals, losing this revenue would mean closure of service lines; for others, it...
Key Messages: California’s Health Care System Is on Life Support
The risk of losing access to critical health care services for Californians has never been greater.
Infographic: Financial Instability
Newsom Administration Proposal to Use Proposition 35 Funds to Balance State Budget Thwarts Will of California Voters
SACRAMENTO (May 14, 2025) — “Just two days after a congressional committee released a federal budget proposal that would hollow out Californians’ health care services through drastic Medicaid cuts, the state’s May budget revision proposal piles on. The state would fill its spending gap by taking $1.6 billion from resources that voters directed to Medi-Cal providers and protecting access to care,” said Carmela Coyle, President & CEO of the California Hospital Association.