California is expanding health care coverage for low-income immigrants in the new year

SACRAMENTO, Calif. (AP) — More than 700,000 immigrants living illegally in California will gain access to free health care starting Monday under one of the state's most ambitious coverage expansions in a decade.

It's an effort that will eventually cost the state about $3.1 billion per year and inches California closer to Democrats' goal of providing universal health care to its roughly 39 million residents.

Democratic Gov. Gavin Newsom and lawmakers agreed in 2022 to provide health care access to all low-income adults regardless of their immigration status through the state's Medicaid program, known as Medi-Cal.

California is the most populous state to guarantee such coverage, though Oregon began doing so in July.

Newsom called the expansion "a transformative step towards strengthening the health care system for all Californians" when he proposed the changes two years ago.

Newsom made the commitment when the state had the largest budget surplus in its history. But as the program kicks off next week, California faces a record $68 billion budget deficit, raising questions and concerns about the economic ramifications of the expansion.

"Regardless of what your position is on this, it doesn't make sense for us to be adding to our deficit," said Republican Sen. Roger Niello, the vice-chair of the Senate Budget and Fiscal Review Committee.

Immigration and health care advocates, who spent more than a decade fighting for the changes, have said the expanded coverage will close a gap in health care access and save the state money in the long run. Those who live in the state illegally often delay or avoid care because they aren't eligible for most coverage, making it more expensive to treat them when they end up in emergency rooms.

"It's a win-win, because it allows us to provide comprehensive care and we believe this will help keep our communities healthier," said Dr. Efrain Talamantes, chief operating officer at AltaMed in Los Angeles, the largest federally qualified health center in California.

The update will be California's largest health care expansion since the 2014 implementation of former President Barack Obama's Affordable Care Act, which allowed states to include adults who fall below 138% of the federal poverty level in their Medicaid programs. California's uninsured rate dropped from about 17% to 7%.

But a large chunk of the population was left out: adults living in the United States without legal permission. They are not eligible for most public benefit programs, even though many have jobs and pay taxes.

Some states have used their tax dollars to cover a portion of health care expenses for some low-income immigrants. California first extended health care benefits to low-income children without legal status in 2015 and later added the benefits for young adults and people over the age of 50.

Now the last remaining group, adults ages 26 to 49, will be eligible for the state's Medicaid program.

The state doesn't know exactly how many people will enroll through the expansion, but state officials said more than 700,000 people will gain full health coverage allowing them to access preventative care and other treatment. That's larger than the entire Medicaid population of several states.

"We've had this asterisk based on immigration status," said Anthony Wright, executive director of Health Access California, a consumer advocacy group. "Just from the numbers point of view, this is a big deal."