To cut federal spending, Republicans should join Newsom in reforming Medicaid.
It says something about congressional Republicans’ unwillingness to reduce Medicaid spending when many of them stand well to the left of Gavin Newsom — I repeat, Gavin Newsom — on the subject. The California governor, a Democrat, recently put forward proposals that would reduce program spending and enrollment.
Newsom won’t win awards for courage when it comes to reforming Medicaid; an ongoing budget crisis, as opposed to policy principle, prompted his volte-face. But the problems in California speak to the larger dynamic Washington will face if it doesn’t get serious about curbing Medicaid’s problems.
Restrictions on Undocumented Immigrants’ Coverage
In his revised budget, Newsom proposed freezing enrollment for undocumented immigrants. Children would be permitted to join the state’s Medicaid program, but no more adults could enroll. Those adults who remain enrolled would face a $100 monthly premium, beginning in 2027.
The Medicaid expansion to those in the country illegally has remained a source of controversy. For starters, that program came in billions of dollars over budget earlier this spring, forcing Newsom’s office to seek emergency bailouts for the Medicaid program. That bailout came after Newsom used a legally questionable accounting scam to have Washington help fund this program — even though federal tax dollars generally do not cover Medicaid coverage for the undocumented. The reconciliation bill before Congress would prevent future use of this accounting loophole by states, saving an estimated $34.6 billion over ten years.
Given that Newsom helped expand California’s Medicaid coverage to the undocumented to begin with, let’s not kid ourselves that he acted out of deep-seated principle in proposing an enrollment freeze and premium charges. Instead, his state faces yet another cash crunch, and the governor was forced to react. Which could well describe what will
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