Health care — one of our most fundamental needs as human beings — is at an inflection point.
As federal and state policies continue to squeeze the system, the number of safe harbors for those in need is shrinking by the day.
At the federal level, a proposal now headed to a floor vote by the House of Representatives would strip $715 billion over the next decade from Medicaid (Medi-Cal in California). For our state, this would mean hospitals being forced to reduce services or close, and millions of people — including everyone, not just those on Medicaid — would have nowhere to turn when they need emergency care or other health care.
We are pressing hard for members of Congress to reject these proposals.
At the state level, a massive budget deficit means even more reductions to Medi-Cal. This week’s May Budget Revise included proposals to illegally sweep away $1.6 billion in funding to support Medi-Cal providers that voters overwhelmingly approved in a ballot measure in November.
We have called upon the Legislature to protect Medi-Cal coverage and resources.
But the pain doesn’t end there.
Just last month, the state’s unelected Office of Health Care Affordability (OHCA) board enacted drastic cuts to California’s health care system as it races to limit health care spending in our state. It did so while ignoring thoughtful, data-driven approaches to making health care more affordable for all Californians without sacrificing access, quality, or equity. Those spending caps will strip $44 billion over four years in health care spending below current hospital expenses.
These policies are coming at a time when expenses for hospitals are skyrocketing. Broad-based inflation for health care driven by salary increases, pharmaceuticals, and more — along with the impact of federal tariffs on medical supplies — are driving costs up at the same time resources are being cut to the bone.
That’s devastating for anyone who needs health care services.
And in a mere four-and-a-half years, California hospitals will be forced by state law to close if they are not able to complete upgrades to their facilities that will keep every building fully operational following an earthquake — despite all of these facilities already being safe for patients and workers. This cost is estimated at more than $100 billion statewide.
With massive state and federal cuts, where will this money come from?
Over the decades, California’s health care system has been resilient. It has endured pandemics, tough budget times, systemic workforce shortages, a behavioral health crisis, recessions, a homelessness crisis, and so much more.
This time is different.
With all of these forces yanking in their own directions at the already-fraying fabric of our health care system, the patchwork cloth is bound to rip. When it does, the question will no longer be how much more we can put on the backs of hospitals before they break, but what kind of health care system we, as California and as a nation, will be left with to care for us all.
If we cut without answering that question in the right way, the suffering of our neighbors, friends, and family will not be a warning.
