California Faces $6.4 Billion Medi-Cal Shortfall Amid Illegal Immigrant Healthcare Costs

California Gov. Gavin Newsom’s administration has asked a $2.8 billion bailout for taxpayer-funded Medi-Cal, in addition to the $3.4 billion requested last week.

With Medi-Cal spending $9.5 billion on illegal immigrant health care this year, Newsom told a press conference that the benefits expansion was at least partly to blame. He also expressed his support for universal, taxpayer-funded healthcare.

“It’s partial,” Newsom said, referring to the link between expanding taxpayer-funded healthcare to illegal immigrants and the $6.4 billion bailout request. “I believe in universal healthcare … it’s just a core principle.”

Newsom stated that turning back the expansion is not on his “docket,” but he is open to “changes.”

With an estimated 1.9 million illegal immigrants and $9.5 billion spent on their healthcare through Medi-Cal, the state is spending about $5,000 per illegal immigrant this year.

The average illegal immigrant in California makes $13 per hour, often in untaxed cash, or $27,040 per year if they work 40 hours per week. If taxed, this wage would generate $464 in state income tax. Assuming 30% of leftover income goes to rent and the remainder goes to sales-tax qualified spending, that’s an additional $1,372 in state sales tax.

This means that a working illegal immigrant may pay approximately $1,846 in state taxes per year, which is far less than the $5,000 spent by Medi-Cal, let alone other services like CalFresh, the state’s food assistance program, and other benefits they may claim on behalf of their children born in the United States.

Trump-era Republicans portray illegal immigration as a fiscal drain, pointing to the disparity between the high expenses of services used and the relatively little taxes levied on even working, single individuals.

See also  The 5 Most Snake-Infested Lakes in California—Beware of These Danger Zones

“Newsom doubling down on bankrupting CA by giving free universal healthcare to illegal immigrants,” said Assemblyman Bill Essayli, R-Corona, in response to the governor’s conversation. “He’s unfit to be Governor, let alone President!”

Reference: Newsom’s Medi-Cal requests $6.4B bailout, spending $9.5B on noncitizens

Leave a Reply

Your email address will not be published.