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The legislature is set to head into its final week before they break for summer recess on July 18. Next week will also mark the final days for bills to make it out second house policy committees. The legislature will return to Sacramento on August 18 for the final leg of the first year of our two-year session.
Budget:
It has been a busy few weeks for the California state budget process. The Senate and Assembly worked hard to close the current $12 billion budget shortfall, and Governor Newsom approved that final spending plan for the budget year just before it began on July 1. While the state budget is currently balanced over a 4–5-year period, there are still many questions to be answered regarding the impact of fiscal pressures created by the passage of the federal budget bill. The press statement can be read here.
It is unclear exactly when and how much the passage of the Federal budget bill will impact the health care ecosystem and California’s overall existing budget structure. Governor Newsom’s fiscal unit and legislative leadership are working to evaluate the impacts ($22-30 billion in lost funding) and have already signaled that a special session over the fall may be necessary to address potential budget shortages. Governor Newsom’s press event prior to the federal bill’s passage gave a few early insights as of June 27:
- $28.4 billion shortfall in the Medi-Cal budget created by the passage of the bill
- 3.4 million Californians at risk of losing health care coverage
- 2 million Californians enrolled in Covered California will see premium increases
- 217,000 jobs lost
- $305 million cut to Planned Parenthood
- 735,000 Californians losing food assistance
The Department of Health Care Services (DHCS) on Monday, sent a message to stakeholders, informing them that H.R. 1 will significantly reduce funding for Medi-Cal, CalFresh, and other safety net programs. In this statement, they underscored that these cuts pose serious threats to California’s programs. Importantly, the communication included that DHCS will be providing stakeholders with information on impacts and updates, signaling that critical departments in California are not yet fully aware of the implications of the bill across various programs.
More information on H.R. 1 details can be found at the following resources below. ACHD will continue to analyze the specific impacts to healthcare districts broadly.
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Center on Budget and Policy Priorities summary focusing on Medicaid and eligibility related changes, and state-by-state impact.
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KFF analysis on how the final bill would impact health care in rural America.
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KFF summary on the impact to some legal immigrants losing coverage and a curtailment of ACA Exchange coverage.
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CalMatters article: How Trump’s Budget will change California Health Care.
HCAI Seismic Webinar:
The Department of Health Care Access and Information will be hosting a webinar on August 14, from 1:00 -2:00 pm. The deadline for Seismic Compliance Plan submittal is fast approaching! All General Acute Care Hospitals are required to submit their plans by January 1, 2026. This webinar will discuss the requirements and strategies for developing a Seismic Compliance Plan for California hospital facilities. We encourage hospitals or districts who lease their hospitals to other operators, who still need to submit compliance plans, to participate in this webinar. More information and registration can be found, here.
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