Katy's favorite bumper sticker from 1985.
DOGE Needs to Take a Deep Dive into California’s Bankrupted Medi-Cal Program
Assembly Republicans are calling for an audit of the program to determine why costs are rising so rapidly
By Katy Grimes, April 8, 2025 9:25 am
California Governor Gavin Newsom’s Medi-Cal program is insolvent.
Newsom just confessed last month that California’s Medi-Cal is insolvent. Medi-Cal is California’s Medicaid program, a public health insurance program which provides needed health care services for low-income individuals. As California Congressman Kevin Kiley noted, “the cost of Newsom’s policy of giving free coverage to every illegal immigrant in the state has ballooned to $9.5 billion, and he’s now asked for a $3.4 billion “loan” just to continue making payments for this month.”
That number has grown: Newsom now needs to borrow $6.2 billion to cover Medi-Cal expenses to cover the massive shortfall in Medi-Cal, California’s version of Medicaid, free to low-cost health coverage for low-income individuals and families, “regardless of their immigration status,” the Globe recently reported.
And that is because Gov. Newsom expanded Medi-Cal to cover all illegal aliens. The bills are coming due and Newsom is overdrawn – with no checks left.
Assemblyman Carl DeMaio (R-San Diego) said “I uncovered this cost spike 2 weeks ago…and got removed from Budget Committee for exposing it,” on X. “CA Governor asks for emergency $3.4B loan to cover Medi-Cal cost spike for free health care for illegal immigrants.”
DeMaio said the program has no money left. “It is broke. It is insolvent. They can’t pay hospitals, doctors, nurses and health care providers, which means giving free health care to illegal immigrants puts the health insurance security for the neediest among us at risk,” DeMaio told Fox Business. “Children, seniors, others that cannot afford it are being threatened with their health coverage because we gave away the store to illegal immigrants. It needs to stop. Governor Newsom’s Medi-Cal system should be audited by the Trump administration immediately.”
“My constituents in my district, if they want the bronze plan under Obamacare for a family of four, that’s $16,000 a year. Illegal immigrants get it free. So the first thing that’s wrong about this policy is it incentivizes illegal immigration by providing a carrot to attract illegal immigrants into this country,” DeMaio added. “Second of all, we were lied to when the governor said it would be reimbursed by the federal government. It’s not. It’s hitting the general fund.”
Congress is eyeing potentially dramatic cuts to Medicaid. State Republicans like Assemblyman Carl DeMaio and Senate Minority Leader Brian Jones have been hammering the $8.4 billion price tag for being far higher than the original estimate, critiques that made it all the way to Elon Musk’s posts on X.
Assembly Republicans are calling for an audit of the program to determine why costs are rising so rapidly.
In a letter to the chair of the Joint Legislative Audit Committee (JLAC), Republican lawmakers requested an investigation to explain why Medi-Cal’s cost overruns are so severe, how the Newsom administration failed to accurately estimate the program’s budget, what steps have been taken to stabilize the program, and to what extent did the governor’s expansion of benefits to illegal immigrants contributed to the program’s fiscal crisis.
DeMaio said in an email, “illegal immigrants are now receiving 1-out-of-4 dollars for MediCal program” in the state general fund budget! I will call on Newsom to use emergency powers to immediately suspend the healthcare handouts to illegal immigrants at taxpayers expense before the whole Medi-Cal system collapses.”
“General Fund spending on Medi-Cal has nearly doubled in six years to $42.1 billion, and total spending on Medi-Cal has grown by 84% to $188.1 billion,” Assembly Republicans reported. “Republicans cited the expansion of Medi-Cal benefits to illegal immigrants as a major reason for the increase, with current-year costs at $9.5 billion, including $2.8 billion in unanticipated costs.”
“Democrats’ bad accounting has brought Medi-Cal to the breaking point, making it harder for patients to get in to see a doctor,” said Assembly Republican Leader James Gallagher (R-East Nicolaus). “We owe it to Californians — and to the vulnerable people who depend on this program — to make sure Medi-Cal is meeting their needs.”
The letter requesting the audit is available HERE.
It’s time for the Trump administration to DOGE California’s Medi-Cal system.
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Let’s see this audit happen now. NOW.
What Newsom is doing and has been doing is out of control, outrageous, and completely unacceptable and it must STOP NOW. For crying out loud.
Newsom has told many lies to California residents but this is a whopper!
“We can cover undocumented California residents and the Federal government will pay for it!”
Oops, the Federal Government is no longer in the business of funneling funds through Beccerra’s HHS. Ahh, now you know why he was placed in that role!
This is why Newsom is desperate to file lawsuit after lawsuit, to get Federal funds! This state government cannot live within it’s means. It is like a druggie looking for it’s next fix?
And for what? To lure migrants from around the world to suck off the American taxpayer!
To look compassionate? This is false, fake, compassion. It is deceit!
Yes, DOGE TO SHOULD BE APPLIED TO THIS SITUATION, ABSOULUTELY!
So goes California, so goes the nation! As Newsom et. al like to preach.
I agree that there needs to be an audit of the program. I actually believe that Medi-Cal should be abolished, and the program be folded into Medi-Caid and folks be on a type of Medi-Care Advantage Plan. We have to many Medi- type plans with each having its own bloated overhead. In regard to illegals on the California plan the numbers should start dropping soon. https://www.thegatewaypundit.com/2025/04/trump-cracks-down-illegal-aliens-be-fined-nearly/
Medi caid is medi cal
I agree we need change, but not Advantage plans. Those are give a ways to insurance industry and cost more than regular plans.
Perhaps the Globe can write an article on Cloward-Piven. This would enlighten their readers about the root cause of these financial disasters. Hint – it is all part of the plan.
Ah yes, the old communist Cloward-Piven strategy of overloading the welfare system in order to collapse our representative government. That’s exactly what Gov. “Hair-gel Hitler” Newsom, who was a WEF Young Global Leader, and the rest of the criminal Democrat thug mafia that controls this state are doing?
Katy Grimes reminded us a few weeks ago with an article detailing how Newsom inked a backroom deal with Kaiser in 2022 for statewide Medi-Cal health after expanding Medi-Cal to cover all illegal aliens. Now illegal aliens are receiving 1-out-of-4 Medi-Cal program dollars and the program is bankrupt.
Meanwhile many Kaiser members are furious about the insane wait times they must endure in order to get healthcare because Newsom’s deal meant they added more people into Kaiser plans, but Kaiser did not increase the number of doctors, nurses or staff. All these illegal aliens are getting free Kaiser healthcare over Kaiser’s paying members. How many of us have family and friends with Kaiser coverage who can attest to the frustration of dealing with Kaiser after Newsom’s backroom Medi-Cal deal?
With federal Medicaid funding accounting for over 60% of Medi-Cal’s budget, a DOGE audit is needed immediately!