Governor Newsom’s devastating Medi-Cal reforms would force California seniors to own less than $2,000 in assets while the state simultaneously spends billions on healthcare for illegal immigrants.
Key Takeaways
- Governor Newsom proposes reinstating a strict $2,000 asset limit for seniors and disabled citizens to qualify for Medi-Cal benefits, which was previously eliminated in 2024.
- The proposal aims to save $94 million this fiscal year and $791 million by 2028-29 as California faces soaring Medi-Cal costs that have increased by $20.5 billion over the past decade.
- Critics argue the asset test unfairly targets taxpaying citizens who contributed their whole lives while California continues extending benefits to undocumented immigrants.
- Health advocates warn the proposal could increase homelessness among seniors and disabled Californians and ultimately cost the state more in expensive nursing home care.
- Newsom has acknowledged that healthcare coverage for undocumented immigrants is “partially” contributing to Medi-Cal’s funding problems.
California’s Budget Crisis Targets Taxpaying Seniors
In a move that has outraged advocates for elderly and disabled Californians, Governor Gavin Newsom has proposed reinstating an asset test for seniors to qualify for Medi-Cal healthcare benefits. The proposal would limit eligible seniors to having less than $2,000 in total assets – including savings accounts, a second vehicle, and retirement funds. This draconian limit has not been fully enforced since 1989 and represents a dramatic reversal from Newsom’s previous policies, which had raised the asset limit to $130,000 in 2022 before eliminating it entirely in 2024.
The proposal comes as California faces a significant budget shortfall, with Medi-Cal costs projected to increase by $10 billion next year without cuts. Newsom claims these measures are necessary for fiscal responsibility, but many see a clear pattern of prioritizing services for undocumented immigrants over taxpaying citizens. While legal residents who worked and paid taxes their entire lives face severe restrictions, California has expanded Medi-Cal coverage to undocumented immigrants at enormous cost to the state.
Lives Devastated By Unrealistic Asset Limits
The human impact of Newsom’s proposal would be devastating for countless Californians who depend on Medi-Cal for survival. Cynde Soto, a quadriplegic, risks losing her state health insurance due to the proposed $2,000 asset limit. Richard Dallatorre, who requires caretakers for daily living, expressed his frustration with a system that seems designed to punish rather than help taxpaying citizens who contributed their whole lives.
“I worked 40 years of my life never receiving help, always paying taxes. I was glad to do it because I thought maybe when I need it, somebody will be able to help me. I didn’t know how stupid the system is,” said Richard Dallatorre, a Medi-Cal recipient who requires caretakers for daily living.
The $2,000 asset limit is particularly cruel in a state with one of the highest costs of living in the nation. Many seniors and disabled individuals would be forced to deplete their life savings to qualify for essential healthcare services. Critics point out that this limit hasn’t been adjusted for inflation in over three decades, and $2,000 today provides virtually no safety net for emergencies, home repairs, or unexpected expenses.
Prioritizing Illegal Immigrants Over Citizens
While Newsom’s budget proposal does include a temporary freeze on new enrollment for undocumented adults in Medi-Cal, it comes only after years of expanding these benefits at taxpayer expense. California became the first state to offer full Medi-Cal coverage to all income-eligible residents regardless of immigration status, a policy that has contributed significantly to the program’s financial strain.
“Gov. Newsom told reporters today CA’s healthcare coverage for undocumented people is ‘partially’ contributing to its Medi-Cal funding problems,” admitted Governor Newsom himself, finally acknowledging what conservatives have long pointed out.
Health advocates and legislators warn that the proposed cuts could actually increase costs in the long run. “This is going to lead to more homelessness of seniors and the disabled. That’s what’s going to happen, and that will cost our state money too,” said Assemblymember Pilar Schiavo, highlighting the shortsightedness of the proposal. Without access to preventive care and home support services, many seniors will require expensive nursing home placements, ultimately costing taxpayers more.
Fiscal Reality Catches Up With Progressive Policies
Newsom’s Medi-Cal reforms represent a painful reality check for California’s progressive healthcare policies. After years of expanding benefits without sustainable funding mechanisms, the fiscal constraints have finally forced difficult decisions. However, the choice to target vulnerable seniors and disabled citizens while continuing to provide benefits to non-citizens reveals the administration’s priorities.
“None of this is the kind of work you enjoy doing, but you’ve got to do it. We have to be responsible. We have to be accountable. We have to balance the budget,” said Governor Gavin Newsom, defending his proposal.
Disability Rights California has condemned the proposal, stating it “demonstrates a continued willingness on the part of the governor to sacrifice the health and human services of California’s people, particularly the disabled, poor, and elderly populations of this abundant state.” The organization’s criticism highlights the fundamental injustice of asking the most vulnerable citizens to bear the burden of budget cuts while maintaining expensive programs for non-citizens.
As this proposal moves through the legislative process, many California taxpayers are left wondering why their decades of tax contributions count for so little when they finally need assistance themselves. The message from Sacramento seems clear: citizens who played by the rules come second to progressive political priorities.
