More than 1.2 million California residents face the potential loss of Medi-Cal coverage, the local name for the federal Medicaid program. This is due to new changes in eligibility requirements and the resumption of normal processes.
The situation arises after the end of special measures implemented during the COVID-19 pandemic. The potential impact on the Medi-Cal beneficiary population is significant.
Continuous Medi-Cal (Medicaid) coverage may be interrupted
If this happens, federal proposals seek to establish work requirements for certain adults on Medicaid. Beneficiaries would have to demonstrate 80 hours of work, volunteering, or education per month. This measure would primarily affect adults under 65. They must have no dependent children and no recognized disabilities to be eligible for this requirement.
During the coronavirus health emergency, annual eligibility reviews were suspended. This policy allowed millions to maintain continuous coverage without mandatory interruptions. The measure officially ended on March 31, 2023. California resumed annual reviews beginning April 1, 2023.
Some specific exemptions are contemplated for specific situations. Pregnant women, primary caregivers, and people with disabilities could be excluded. Despite these provisions, official estimates project a massive impact. Between 1.2 and 3.5 million Californians could lose their coverage due to noncompliance.
Up to 3 million could lose their halthcare coverage in California
This restart of normal processes entails significant operational challenges. It is estimated that between 2 and 3 million people could lose their coverage during this period. Many losses are attributed to common administrative issues in these processes. These include not receiving notifications or errors in submitted documentation.
Reinstatement of reviews requires action on the part of beneficiaries. Get in touch with yuor local Medi-Cal office and update your data. Completing and returning renewal forms on time is crucial. Failure to respond to these requests results in automatic termination of benefits.
Medicaid to eliminate asset limits in California
California implemented a significant change to its financial eligibility criteria. As of January 1, 2024, the asset limit requirement for certain programs was eliminated. This affects specific programs within Medi-Cal, such as long-term care services.
Financial assets such as bank accounts or cash are no longer considered. Additional properties other than the primary residence are also excluded from the analysis. This change simplifies the eligibility determination process for affected groups. It seeks to reduce administrative barriers to access.
The change applies primarily to programs such as Long-Term Care and Medicare Savings Programs. Eligibility will now be based primarily on the applicant’s monthly income. This adjustment represents a shift from the previous means-tested policy.
Governor Gavin Newsom has expressed concern about federal proposals. He warns that they could significantly cut Medicaid funding. “Up to 3.4 million Californians could lose their coverage,” Newsom said. He emphasized that this would “put hospitals and clinics across the state at risk.”
Additionally, California faces a projected $12 billion state budget deficit. This complex financial context influences policy decisions regarding Medi-Cal. Proposals have been introduced to freeze new enrollments for undocumented adults. Another measure would require monthly premiums starting in 2027 for some groups.
