Cost to expand Medi-Cal a mystery
- Share via
SACRAMENTO -- Gov. Jerry Brown’s administration has warned repeatedly that California is venturing into unknown territory with the expansion of healthcare under the new federal law. The exact cost of implementation is unknown.
A report issued Tuesday by the Legislative Analyst’s Office shows how big a range of potential bills California taxpayers are confronted with when it comes to a central component of the healthcare law: growing the Medi-Cal insurance program for the poor by about 1 million people.
The federal government has vowed to pick up the tab for the first few years. But costs for the state could grow quickly after that. By 2021, the state could be spending as little as $300 million annually to pay for the Medi-Cal expansion -- or as much as nearly $1.4 billion.
The understatement in the report: “Expansion costs are subject to substantial uncertainty.”
The analyst’s office nevertheless urges lawmakers to continue moving aggressively to grow Medi-Cal. They say the costs to the state will be outweighed by the savings that come from getting as many as 1 million more lo- income Californians insured.
The expansion amount of “uncompensated healthcare” would drop dramatically, the report notes, saving California counties as much as $1.2 billion per year. Private hospitals and physicians would still end up providing some “charity care” to the uninsured, but it wouldn’t be nearly as much as the current $1-billion worth.
The analyst’s bottom line: “We believe the policy merits of the expansion and the fiscal benefits that are likely to accrue to the state as a whole outweigh the costs and potential fiscal risks.”
ALSO:
Jerry Brown asks for changes to state’s Medi-Cal expansion plan
California budget increasingly goes to salaries, healthcare, report says
Lawmaker wants to open Southern California carpool lanes for off-peak use
Twitter: @evanhalper
More to Read
Get the L.A. Times Politics newsletter
Deeply reported insights into legislation, politics and policy from Sacramento, Washington and beyond. In your inbox twice per week.
You may occasionally receive promotional content from the Los Angeles Times.