LOS ANGELES – May 14, 2025 – Today, Governor Gavin Newsom unveiled his May Revision budget proposal for the 2025-26 fiscal year. The budget identifies $12 billion in corrective proposals to balance the budget and maintain reserves. The Governor attributes a projected $16 billion reduction in state revenue to federal policies and actions but does not otherwise incorporate any projected effects of federal cuts currently under consideration in Congress.
Health centers are dismayed to see proposals that will weaken recent Medi-Cal expansions and reduce access to care for our patients. The May Revision proposes to freeze enrollment for Health4All expansion adults starting in January 2026 and add a $100 monthly premium for those adults who remain enrolled beginning in January 2027. It also calls for the elimination of full-scope dental coverage, in-home supportive services, and long-term care benefits for this population. We are disappointed that the May Revision steps back from California’s commitments to a robust Medi-Cal program and health care for all.
Health centers are alarmed by the proposal to eliminate Prospective Payment System (PPS) rates to health centers for care provided to patients covered by Health4All expansions. The FQHC PPS structure is intended to be a fair payment rate to cover the robust and comprehensive services health centers provide to their patients. Eliminating adequate reimbursement for certain populations is the antithesis of health for all. This proposal would pick winners and losers depending on a health center’s patient population. It would unfairly punish providers who serve certain populations and communities, creating further gaps in access to care in California’s health care delivery system.
Health centers provide care to 1 in 3 Medi-Cal members. They depend on Medi-Cal to keep their doors open and their staff employed. We are extremely concerned that the combination of these proposed cuts plus looming federal Medicaid changes will decimate the viability and sustainability of community health centers.
We recognize that the state faces significant budgetary challenges, but weakening the safety net is not the solution. Health centers and their patients need support, not cuts. CCALAC looks forward to working with the legislature to identify alternative solutions to preserve California’s coverage gains, protect access to care, and strengthen the safety net.
About the Community Clinic Association of Los Angeles County
Founded in 1994, the Community Clinic Association of Los Angeles County (CCALAC) is the largest regional association of community health centers in California. Health centers in Los Angeles serve more than 2.02 million patients at over 450 sites across the county. The majority of these patients (74%) have low incomes, and 93% are covered by public insurance or uninsured. CCALAC is dedicated to helping health centers remain at the forefront of health care transformation, in support of the patients and communities they serve. For more information about CCALAC, visit www.ccalac.org or call (213) 201-6500.
Contact: Taryn Burks – Communications Manager, media@ccalac.org | (213) 201-6529.