Next Governor To Face Thorny Choices After California’s Rapid Medicaid Expansion

Next Governor To Face Thorny Choices After California’s Rapid Medicaid Expansion

Medi-Cal, the nation’s largest Medicaid program, was in trouble even before the GOP’s One Big Beautiful Bill Act. Rapid expansion, spiraling costs, and billions in federal funding cuts will mean tough challenges for California’s next governor. On the campaign trail, the two men running for the job have offered few answers.

Next Governor To Face Thorny Choices After California’s Rapid Medicaid Expansion - Health Care Today

In March 2025, when California ran out of Medicaid funds to pay doctors and hospitals, the state borrowed $3.4 billion to keep the program afloat. It was, as a spokesperson for Gov. Gavin Newsom insisted, nothing new. Indeed, a handful of times over the years, the state had taken out internal, short-term loans to sustain [...]