Facts.
Fund the Gap.
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FACTS
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California’s counties and public hospitals are on the front lines of care for millions of residents. But the Governor’s May Revision fails to provide the support needed to address the impacts of H.R.1 and the growing number of uninsured Californians.
When people lose coverage, they still turn to county hospitals and clinics for care — providers that are legally required to serve everyone, regardless of ability to pay. Without targeted state investment, counties and public hospitals will face mounting financial pressure that threatens California’s entire health care safety net.
The facts below highlight the urgent need for state action.
- The Governor’s May Revise left counties behind. By failing to invest in critical health care and food access for Californians impacted by H.R.1, the budget proposal not only undermines the fiscal health of counties but puts the state’s entire safety net at risk.
- When people lose coverage here, they don’t disappear. They delay care, get sicker, and ultimately turn to our county hospitals and clinics, where we are legally required to serve them regardless of their ability to pay.
- Unprecedented numbers of residents are at risk of losing their Medi-Cal coverage. This will result in people showing up at our public hospitals and clinics without insurance—and without the federal reimbursement that helps us cover the cost of their care.
- The State has got to provide some targeted investments in the state budget to mitigate HR 1 impacts.
Public Hospitals
- The May Revision provides no support for public hospitals, despite a $500 million request to address the impacts of H.R.1.
- Instead, public hospitals face an $800 million cut due to Medi-Cal policy changes, further straining already overstretched hospitals.
- In total, with H.R.1 impacts and shifting undocumented patients to fee-for-service, public hospitals face a nearly $4 billion reduction – an unsustainable blow that threatens trauma, burn care, and medical training education that all Californians rely on.
- These cuts highlight the urgent need for a $500 million General Fund appropriation in the 2026-2027 State Budget.
- Public hospitals must be included in efforts to mitigate the impact of H.R.1 on California’s health care.
- The May Revision fails to address the financial crisis for public hospitals and could worsen their situation.
- Each dollar lost means longer wait times, less access to primary and specialty care, and more patients delaying treatment until emergencies arise.