How a $220B Program Serving a Third of California Is Quietly Draining the State Dry

Executive Briefing

• Covers one-third of Californians, Medi-Cal now consumes roughly 40% of California's entire state budget.
• Trump administration paused over $860 million in federal funding after discovering inflated in-home care claims.
• Pacific Research Institute report warns program has expanded beyond the state's capacity to effectively manage it.
• Eligibility now extends to able-bodied adults and low-income immigrants regardless of immigration status.
• Experts urge eliminating fraud first, arguing savings would free resources for truly vulnerable residents.
• Provider shortages and longer wait times are worsening as excessive demand outpaces available doctors.