California healthcare costs soar after covering undocumented residents

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California’s Medi-Cal program faces mounting financial challenges as Governor Gavin Newsom seeks additional emergency funding, requesting another $2.8 billion loan on top of last week’s $3.44 billion request to maintain the state’s Medicaid operations.

The financial strain comes in the wake of California’s groundbreaking decision to extend healthcare coverage to undocumented immigrants. As Breitbart News reported in 2022: “Beginning January 1, 2024, illegal aliens residing in California will become eligible for taxpayer-funded health insurance — the first state in the nation to enact such a policy.”

When implementing the policy, Newsom had proudly declared: “With these new investments, California will become the first state to achieve universal access to health care coverage.”

🚨 BREAKING: California’s Medi-Cal is officially BANKRUPT, and Gavin Newsom’s begging for ANOTHER $2.8 BILLION to keep it afloat through June. This comes DAYS after he quietly borrowed $3.4 BILLION to cover costs through March. That’s $6.2 BILLION in bandaids for a program… pic.twitter.com/ceAvh0O1ZX

— Houman David Hemmati, MD, PhD (@houmanhemmati) March 17, 2025

The cost of including undocumented immigrants has significantly exceeded initial projections. According to figures presented to state lawmakers, the coverage of undocumented immigrants has surpassed planned expenditures by $2.7 billion, emerging as the primary factor in Medi-Cal’s current financial crisis.

This financial predicament isn’t unique to California. Other progressive states implementing similar policies are experiencing comparable challenges. In Illinois, Governor J.B. Pritzker is currently working to exclude undocumented immigrants aged 42 to 64 from their healthcare program due to substantial budget deficits.

The situation has become so dire that Republican State Assemblyman Carl DeMaio of San Diego informed Breitbart News Sunday about Medi-Cal’s inability to meet its payment obligations to healthcare providers, effectively rendering the program insolvent.

Meanwhile, as these fiscal challenges mount, Governor Newsom has turned his attention to a new venture in podcasting, despite the ongoing financial and natural disasters facing his state.

California is a preview of what the rest country could look like. Take health care.

Newsom is giving free healthcare to everyone here illegally, costing taxpayers $3 billion. Meanwhile, our own citizens aren't well-served by Medi-Cal because the reimbursements rates are so low. pic.twitter.com/teXYwzjyIB

— Kevin Kiley (@KevinKileyCA) November 4, 2024