About Medi-Cal
More than 15 million Californians rely on Medi-Cal, the state’s health care coverage safety net, for health insurance. Two-thirds of those on Medi-Cal are people of color and often live 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.
Medi-Cal is California’s version of the federal program known as Medicaid. To learn more about CHA’s work to protect Medicaid, visit our federal resource page.
Governor’s May Revision Proposes Backfilling Budget with Prop 35 Funds
What’s happening: On May 14, Gov. Gavin Newsom released his May Revision budget proposal for 2025-26, which diverts much of the funds from Proposition (Prop) 35 away from their intended purpose — provider payment increases — to address a $12 billion projected budget deficit.
Proposed Changes to Medicaid Health Care-Related Tax Rules Threaten MCO Tax, Hospital Fee Program
What’s happening: The Centers for Medicare & Medicaid Services (CMS) has issued proposed changes to the Medicaid health care-related tax rules that present significant risks for California’s managed care organization (MCO) tax and Hospital Quality Assurance Fee Program — both of which hospitals rely on to deliver patient care. Comments on the proposed rule are due to CMS by July 14.
Budget Proposal Would Cut Tens of Billions from Medicaid
What’s happening: On May 14, the House Energy and Commerce Committee finalized bill language that proposes major cuts and policy changes to the Medicaid program (Medi-Cal in California) that would severely impact California’s health care system.
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.
Medicaid Cuts Will Hurt All Californians
SACRAMENTO (May 12, 2025) — “The legislation proposed by the House Energy and Commerce Committee to enact massive Medicaid cuts is a devastating blow that will be felt by all who need hospital care,” said Carmela Coyle, President & CEO of the California Hospital Association. “Cuts of this magnitude cannot be absorbed. Hospitals will have no other choice but to reduce patient care services or, in the worst cases, close entirely. That means care is lost for everyone — children, seniors, privately insured people — no matter what type of health insurance coverage you have.”
DHCS Updates Community Services and Supports Guide
What’s happening: The Department of Health Care Services’ (DHCS’) revised Community Supports Policy Guide reflects extensive feedback from managed care plans, providers, and other stakeholders.
Hospital Fee Program 8 Invoices Past Due
What’s happening: Payments for the Hospital Quality Assurance Fee program 8 fee-for-service were due to the Department of Health Care Services (DHCS) on May 7.
Hospital Leaders Take Message on Threats to Medicaid, Medicare to Capitol Hill
What’s happening: As part of the American Hospital Association Annual Meeting held in Washington, D.C., this week, California hospital and health system leaders participated in more than 20 meetings with the California congressional delegation.
Medicaid Cuts Front and Center as Congress Returns from Recess
Earlier this week, members of Congress returned to Washington, D.C., from their spring recess, with both the House of Representatives and the Senate laser-focused on delivering a 2026 domestic spending bill to President Donald Trump.
DHCS Community Support Updates Take Effect July 1
What’s happening: The Department of Health Care Services (DHCS) has updated service definitions for four of the 14 community supports that Medi-Cal managed care plans (MCPs) may offer as part of the state’s Medi-Cal reform effort, California Advancing and Innovating Medi-Cal (CalAIM). The four updated service definitions go into effect July 1.