California is considering extending health insurance subsidies to all adult immigrants, regardless of their legal status. [Source]
A concerning proposal This proposal has come under scrutiny, particularly from those concerned about the ongoing border crisis and the implications of providing state-funded services to individuals without permanent legal residency.
California’s decision to become the first state to extend Medicaid to all qualifying adults, regardless of immigration status, was hailed by health advocates and political leaders.
However, many who oppose the influx of illegal immigrants view this policy as an undue burden on state resources, particularly given California’s current budget deficit projected to be between $38 billion and $73 billion next year.
The state is now considering further expanding coverage through AB 4, a bill that would include all immigrant adults in Covered California, the state’s Affordable Care Act (ACA) marketplace.
This “mirror marketplace” would provide health plans subsidized entirely by the state, given that federal law prohibits undocumented immigrants from receiving ACA benefits.
The cost of setting up and subsidizing this marketplace could be substantial. Assembly member Joaquin Arambula, who introduced the bill, mentioned that initial estimates for creating the marketplace hover around $15 million, with ongoing subsidies potentially costing billions annually.
While the bill passed the Assembly with significant support, its future in the Senate Appropriations Committee is uncertain amidst financial constraints.
Despite these challenges, Arambula remains hopeful about California’s leadership in expanding healthcare access. “I believe we will continue to stand up, as we are working to make this a California for all,” he asserted.
According to the labor research center at the University of California-Berkeley, approximately 520,000 individuals in California would be eligible for a Covered California plan were it not for their undocumented status.
This proposal can become an imprudent use of taxpayer money, especially during a budgetary shortfall.