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Newsom Seeks Additional $2.8 Billion for Medi-Cal Cost Overruns

Newsom Seeks Additional $2.8 Billion for Medi-Cal Cost Overruns

Governor Gavin Newsom is set to request an additional $2.8 billion from the California legislature to address significant cost overruns in the Medi-Cal program. This request comes as the state grapples with the financial implications of providing healthcare to a growing number of residents, particularly those who have been uninsured or underinsured.

The Medi-Cal program, which offers free or low-cost health coverage to eligible residents, has seen an increase in enrollment and costs due to various factors, including the ongoing effects of the global health crisis and the expansion of eligibility criteria. The proposed $2.8 billion is intended to cover these unexpected expenses and ensure the program's sustainability.

Newsom's administration has emphasized the importance of maintaining a robust Medi-Cal system, which is crucial for the health and well-being of millions of Californians. However, the request for additional funding has sparked debate among lawmakers, with some expressing concerns about the state's budget deficit and the need for fiscal responsibility.

The California legislature will now review the governor's proposal and determine how to address the Medi-Cal funding shortfall. This decision will have significant implications for the state's healthcare system and its ability to provide essential services to those in need.

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