Millions of Californians who rely on Medi-Cal support services and at home could lose eligibility under a proposal forcing beneficiaries to prove that their assets total less than $ 2,000.
Recent of Governor Gavin Newsom Revised budget proposal highlighted A brutal increase of $ 37.6 billion in funding costs associated with Medi-Cal between the 2024 and 2025 fiscal year, against $ 17.1 billion during the 2014 to 2015 fiscal year.
The amount of the dollar required to finance the program should continue to increase in the coming years. The cost was increased by an increase in registrations, pharmacy costs and higher care costs, according to the budgetary proposal.
Medi-Cal’s workload reported an increase of 12.7 million beneficiaries between 2019 and 2020 to 15 million in 2024 to 2025.
Medi-Cal is the state health care program that offers free or low cost health coverage for those who are eligible, especially adults and low-income families, the elderly and disabled people. Home support services provide home assistance to aged, blind and disabled people eligible as an alternative to out -of -home care.
Newsom proposed to attack the costs of programs by reintroducing what is called the “asset test” to limit the eligibility for Medi-Cal support and home support services programs.
What is the “active test”?
For decades, low-income elderly and disabled people had to pass the “asset test” to be eligible for medi-calt and home support services programs. This meant that one applicant could not qualify if he had assets worth more than $ 2,000. The limit for a couple was $ 3,000.
To determine whether someone had $ 2,000 or not, the state would examine a person’s bank accounts, the amount of the money they had in hand and if he had a second vehicle, among other analyzes.
In 2024, the test was eliminated, allowing people eligible for all income to apply for the aged and handicapped program of Medi-Cal, the business savings programs and the long-term care program, whatever the assets.
What does the Governor of California offer?
Newsom proposed to restore the “asset test” and include in this evaluation the value of the main house funds, vehicle or retirement of a person for Medi-Cal service programs and home support.
The reintegration of the test would save around $ 94 million allegedly in the coming financial year, $ 540 million next year and $ 791 million later, which includes costs for home support services, according to the California Department of Health Care Services.
If it is approved, the “asset test” would come into force on January 1, 2026.
What do the defenders of health and disability say?
Defenders of disability and health criticize the governor’s proposal, with the non -profit group California Handicap Rights Call him a desire to “sacrifice the health and social services of the Californian people, in particular the disabled, poor and elderly populations”.
“Disabled rights in California and many others fought tirelessly for years to have this active limit eliminated, finding that it is a deeply inhuman and punitive approach, the change has simply entered into force in 2024, and it is really disturbing to see the governor’s inverted course so quickly,” the non -profit organization said in a press release.
The reintegration of the “asset test” would lead to “the loss of coverage of people and to force the elderly and the disabled in extreme poverty,” said the non -profit organization California Health Advocates.
The organization claims that individuals who would lose coverage following the proposed change in policy could finally become “media-complaints eligible once they have exhausted the resources they have”.
“Due to loss of access to care, state costs when they resume eligibility will probably increase because their condition will have aggravated and they will no longer be able to live at home, thus requiring full -time care for nursing institutions,” the organization said in a press release.
Newsom defended its proposed budget cuts saying: “None of this is the kind of work you like to do – but you have to do it. We must be responsible. We must be responsible. We have to balance the budget. “
The legislative analyst’s office determined that the elderly represented just under 10% of Med-Cal registrations in December 2024.
The largest category of MEDI-CAL registrants is families, followed by children without children aged 19 to 64 who qualify under the patient protection law and affordable care, the elderly, disabled people, children of the children’s health insurance program (Chip) and other registered.
Families and registrants of the Patient Protection Act and affordable care represent approximately three-quarters of registration Medi-Cal.
Even if the number of senior registrants is relatively low compared to the other groups, the State spends strongly there, with annual costs per registration of around $ 15,000, against $ 8,000 in other categories of cases of cases.
To finance most Medi-Cal programs for families, the elderly and disabled people, the federal government provides correspondence of 50%, compared to other programs such as the affordable care law and the health insurance program for children who obtains an improved correspondence of 90%and 65%, respectively.
“Although higher health care costs are expected as people are aging, the elderly also have higher state costs due to the standard federal reimbursement rate,” the report.
