California State Governor Gavin Newsom before a meeting in Sacramento, CA, May 31, 2020. (Photo: Matt Gush/Shutterstock)
Remember Newsom’s 2022 Backroom Deal to Cut Out Competition and Force All of California into Kaiser?
Newsom’s policy of giving free medical coverage to every illegal immigrant in the state ballooned to $9.5 billion
By Katy Grimes, March 18, 2025 8:26 am
Remember when Governor Gavin Newsom inked the backroom deal with Kaiser for statewide Medi-Cal health?
He never learns, does he?
Last week we learned that the cost of Newsom’s policy of giving free medical coverage to every illegal immigrant in the state ballooned to $9.5 billion. Newsom announced he would need a $3.4 billion “loan” just to continue making payments for this month. But Wait! There’s More! Now we learn that the Newsom administration just asked for another $2.8 billion to be able to pay Medi-Cal providers through the end of the fiscal year – totaling $6.2 billion in the hole just for Medi-Cal.
DOGE needs to take a deep dive into California’s Medi-Cal program.
Gov. Newsom expanded Medi-Cal to cover all illegal aliens. The bills are coming due and Newsom is overdrawn.
So the Kaiser deal in 2022 makes more sense.
In 2022, only days after Newsom’s proposed Single Payer state-controlled health care bill failed to even get to a vote in the Assembly, a medical industry news website announced “California inks sweetheart deal with Kaiser Permanente, jeopardizing Medicaid reforms.”
While many heaved a sigh of relief that private health care in California was saved, a few select Newsom advisors were meeting behind closed doors, away from elected lawmakers, to ink a similar deal. It was no wonder Newsom wasn’t hammering the Legislature to pass the state-controlled health care bill Assembly Bill 1400.
Kaiser Permanente gave nearly $100 million in charitable funding and grant money to boost Newsom’s efforts against homelessness, COVID response, and wildfire relief since 2019, Modern Healthcare reported in 2022.
The plan was to cut out the competition and make everyone in California under Kaiser, a doctor familiar with the deal told the Globe.
Because if the Legislature and governor couldn’t pass single payer, the next best alternative was to place all of California under Kaiser. And, Kaiser’s Medi-Cal enrollment was already expected to grow by 25% under the contract, serving 32 counties.
How did the 2022 Kaiser deal come about? Modern Healthcare reported:
“In 2020, KP gave $25 million to one of Newsom’s key initiatives, a state homelessness fund to move people off the streets and into hotel rooms, according to a KHN analysis of charitable payments filed with the California Fair Political Practices Commission. The same year, it donated $9.75 million to a state COVID relief fund.
In summer 2020, when local and state public health departments struggled to contain COVID spread, the healthcare giant pledged $63 million in grant funding to help contract-tracing efforts.”
and:
“Jim DeBoo, Newsom’s executive secretary, used to lobby for KP before joining the administration. Toby Douglas, a former director of the state Department of Health Care Services, which runs Medi-Cal, is now Kaiser Permanente’s vice president for national Medicaid.”
and:
“Kaiser Permanente historically has not played a very big role in Medi-Cal, and the state has long recognized that we would benefit from having them more engaged because they get better health outcomes and focus on prevention,” said Daniel Zingale, a former Newsom administration official and health insurance regulator who now advises a lobbying firm that has Kaiser Permanente as a client.”
“Zingale is a strong proponent of Gov. Newsom’s desire to restore the Obamacare mandate, and universal coverage for all people living in California,” the Globe reported in January 2019 when Gov. Gavin Newsom named Zingale Senior Adviser on Strategy and Communications.
So it was interesting to see Kaiser last week cover the story admitting Newsom’s Medi-Cal financial situation and fraud:
“California’s Medicaid program has borrowed $3.4 billion from the state’s general fund — and will likely need even more — to cover ballooning health expenses for 15 million residents with low incomes and disabilities.
The state Department of Finance disclosed the loan to lawmakers in a letter late Wednesday, noting funds were needed to make critical payments to health care providers in Medi-Cal, the state’s version of Medicaid. In recent months, Gov. Gavin Newsom’s administration has warned of skyrocketing health care costs, including higher prescription drug prices and increased enrollment by newly eligible seniors and immigrants without legal status.
How ironic that Newsom was warning about “skyrocketing health care costs,” when he’s responsible for creating the crisis – first by trying to shoehorn in single payer healthcare to all of California, and when that didn’t work, by expanding Medi-Cal to anyone who can fog a mirror and illegal immigrants.
A Kaiser doctor told the Globe that the Newsom administration and the Kaiser CEO recently made a deal so both parties can look good. But Kaiser members are furious because wait time are insane because the deal meant they added more people into Kaiser plans, but did not increase the number of doctors, nurses or staff. So you have all these illegal immigrants getting free Kaiser healthcare over Kaiser’s paying members.
Kaiser continues:
“The cost overrun adds a new layer of difficulty for Democrats who control the legislature and are already grappling with congressional budget plans that could slash Medicaid funding, which accounts for 60% of Medi-Cal’s $174.6 billion budget.”
Let this sink in: federal Medicaid funding accounts for 60% of Medi-Cal’s $174.6 billion budget – about $116 billion from the federal government into California’s Medi-Cal coffers.
Remember when California’s entire state budget was less than $100 billion? Not that long ago when Jerry Brown was governor.
When Gov. Jerry Brown was (re)elected in 2011, the state budget was $98 billion. The state’s population was a little over 38 million. Brown doubled the budget to $199.3 billion in 8 years – with no measurable increase in population. Gov. Gavin Newsom inherited Brown’s $199.3 billion budget, and has grown it to $330 billion in 5 years – while losing population.
Newsom just confessed last week that California’s Medi-Cal is insolvent. 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.”
Newsom has to borrow $6.2 Billion 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.”
“This gives added urgency to my bill to end this scandal by requiring Medi-Cal to be reserved for legal residents,” Congressman Kevin Kiley said.
Kiley (R-CA) introduced the No Medicaid for Illegal Immigrants Act, legislation that would prohibit states from using both federal and state Medicaid funds to provide services for illegal immigrants, Contra Costs News reported. “This common sense legislation ensures that taxpayer-funded healthcare benefits are preserved for those who lawfully qualify, prioritizing the needs of American citizens and legal residents while promoting fairness and fiscal responsibility.”
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“DOGE needs to take a deep dive into California’s Medi-Cal program.”
Yes indeed, KG. Wondering where the billions of federal dollars are going if Kaiser services are being curtailed for paying customers and no new providers are being hired to help service the illegals and mirror foggers? This looks just like the USAID scheme where political friends are being paid and funds are being siphoned off for other purposes (e.g., the ngo homeless programs). Kevin Kiley should send another letter to Kash Patel at the FBI asking for an investigation of Medicaid/Medi-Cal.
This is slightly misleading it’s fromJ anuary 1, 2024 that all undocumented adults in California who meet income eligibility requirements are able to enroll in Medi-Cal, California’s Medicaid program. Adults ages 26-49 who earn less than 138%. They were still ending up in emergency rooms. Also california’s state constitution requires a balanced budget yearly. With all that’s been happening of recent it’s no surprise. Plus revenues were down during most of covid. We were supposed to catch up this year before the fire. I’m more concerned about the railroad that was to be built & all regulations on building. People suing others not to build homes next to them & regulations. There are NOT enough homes in CA bc of greed by corporations & some in. Especially for young families amd younger generations. Older generations don’t want to sell & have accumulated lots of equity. Well the younger ones will leave and we’ll see how the older folks will hold up with these Medicaid / Medicare issues. We need more family homes, cheaper.
Sadly, the vast majority of voters in this state will never know that Medi-Cal is insolvent (or what Medi-Cal even is) nor will they understand the consequences of giving free stuff to people who are here illegally and are not net income tax payers. So they will continue to elect the same people who have caused these problems over and over again and the state’s budgets and deficits will only continue to balloon even more.
it’s not the people voting them in. it’s that the democrats control the state legislature in sac. dark money like soros open society foundation pays them all off. ten counties in Cali turned red. not enough people vote to stop the problem.plus? ballot harvesting goes on. and who counts the votes.
Cloward-Piven. Look it up.
For those who are unfamiliar with this strategy to dismantle our country here is a good summary:
https://www.cairco.org/reference/cloward-piven-strategy-fundamentally-transforming-america
BTW, Hillary Clinton was an admirer of these Marxists.
“Kaiser members are furious because wait time are insane because the deal meant they added more people into Kaiser plans, but did not increase the number of doctors, nurses or staff. So you have all these illegal immigrants getting free Kaiser healthcare over Kaiser’s paying members.”
How many of us have family members who have Kaiser and can attest to this being the case? Kaiser has become a nightmare for those needing healthcare.
Hey look, it’s Governor Numbnut Hairgel’s favorite Chinese conglomerate, making news today!
https://www.marketwatch.com/story/byd-shares-rise-as-chinese-ev-maker-unveils-5-minute-charge-5efc8729?st=F7u8ku&reflink=desktopwebshare_permalink
No word on how many FIRES are associated with the Chinese Fire Drill charging platform….
The BYD “blade battery” is apparently the next step which replaces lithium-ion batteries and moves the technology toward an eventual solid-state battery system for EVs. The improvement is in safety and charging time:
https://www.euromarque.co.nz/news/byd-blade-battery-all-you-need-to-know
https://www.caranddriver.com/features/a63306863/solid-state-batteries-evs-explained/
Newsom is a complete disaster. He has to be removed and never hold office again.
I’ve noticed Kaiser Medicare Advantage members in Sacramento have been posting on the Nextdoor app asking for advice about other Medicare Advantage plans because they’re fed up with Kaiser’s long wait times to see a doctor and have procedures done. The local news media has not covered how Newsom’s shady backroom deal with Kaiser has impacted Kaiser members that I’m aware of. It’s another reason to read California Globe!
We need a DOGE treatment BAD and as soon as possible. We have a delusional idiot horse’s ass of a governor whose impulsivity and corruption knows no bounds. Every day, in every way, he is KILLING the Once-Golden State. HELP
DOGE needs to Audit Gavin Newsom. He needs to be impeached. The only reason he is still in office has nothing to do with him being reelected, but has everything to do with his aunt Nancy Pelosi simply sticking him back in the position. He needs to be investigated deep investigation. He is as crooked as a four dollar bill only everybody just keeps overlooking him like they overlook the Biden’s simply because he is Pelosi‘s nephew. Whatever they find, they’ll simply sweep under the rug, just like they have with the Biden‘s and the Obama‘s and the Clintons no new some claims that $9 million mansion he bragged about belongs to his wife because he knows he got that illegally. He did something when he went to China. How many governors do we know that have business in China? How many governors have made trips to China and then within months after coming back purchase a $9 million mansion. How can you afford all the things he has all the things he buys all the trips he goes on on a governor’s salary yes I understand that his wife works but come on for kids all in private schools. It’s a bunch of bull. He’s on the take. Let’s investigate him and let’s get him impeached.
Come on California, when are you going to Wise-up and get rid of the governor, and all the state leaders,who keep pushing his flawed legislation. Stop Newsom now, before he destroys California……..
We are trying to recall Newsom right now. Petitions are supposed to be out shortly. The petitions are in the reviewing process right now. Saving California is working on it.
It is true. There are some illegal workers who are working on a home next door. A few of them have had all their teeth fixed at a dentist office and paid zero. Medi cal paid for everything. And none of these men pay taxes. The have been getting paid in cash for years. Also the hospitals have been flooded now with illegals and it has impacted citizens and legal residents here in Los Angeles.
Put it on the ballot so we can vote this absurd policy down. No wonder Kaiser services have plummeted.
Question. Where are Gav’s college transcripts?
Did he just take acting classes and not business classes?
What qualified him to become a Lieutenant Governor and then Governor?