A healthy California relies on a strong economy, which depends on Medi-Cal | Opinion
If Congress approves the proposed federal Medicaid cuts, millions of Californians could lose access to health care through Medi-Cal.
The proposed cuts threaten access to life-sustaining and life-saving health care. But the danger does not stop there. Cuts to Medicaid would also be disastrous for our economy, with ripple effects that would hurt everyone in California.
These Californians are not strangers. They are cashiers at our local grocery store. They are senior citizens who live in nursing homes in our communities. They are children and young adults whose main source of care is through the Medi-Cal program. Every Californian deserves to have a healthy life, and this fundamental right will be taken away if the Medi-Cal program is cut.
Researchers project that Medicaid cuts would hurt California’s economy the most among all 50 states. The UC Berkeley Labor Center estimates the proposed cuts could result in California losing $37 billion in economic output. That means less resources flowing into our communities.
Medi-Cal pays health care providers such as hospitals and community clinics. It sustains jobs not just in health care, but also in associated businesses like retail stores and restaurants. Our state could lose as many as 217,000 jobs as workers across these sectors are laid off, and facilities such as hospitals, clinics, and nursing homes are forced to close.
The proposed cuts would not just affect people enrolled in Medi-Cal — they would make care harder to access for all Californians. For example, in many rural areas, hospitals are a primary source of care. Yet 10% of the rural hospitals in California are already at immediate risk of closing, and may not be able to keep their doors open under the proposed Medicaid cuts.
Residents would bear the repercussions, forced to travel farther and face significantly longer wait times for the care they need.
At the local level, certain counties will feel the harm more than others; in San Bernardino and Riverside, which are among the state’s top five most populous counties, both Medi-Cal enrollment and job loss predictions are particularly high. The federal cuts propose to take affordable health care away from nearly half of residents and erase more than 27,000 jobs across both counties. Simultaneously losing both gainful employment and health coverage would pose an imminent threat to working families’ livelihoods. Consider also the impact on the Central Valley, which already experiences more unemployment compared to the rest of the state. Losing jobs here would be especially detrimental.
It is important to mention these potential impacts not to spread fear, but to emphasize how we all depend on Medi-Cal for accessible, affordable health care and economic stability — even people who are not enrolled in it. As we have seen at The California Endowment in nearly 30 years working alongside communities and partners to improve health outcomes for all Californians, our health and prosperity are intertwined.
The community organizers and leaders we partner with all affirm that our communities are healthiest when jobs are plentiful, public services have enough funding to function well, and we have enough money in our pockets to keep up with everyday expenses. That is why so many Californians express support for Medi-Cal.
In a statewide voter poll we commissioned earlier this year, 60% of voters agree Medi-Cal has a positive effect on life in California and 72% believe it is important to preserve Medi-Cal. A majority of voters expressed concern about the impact of Medi-Cal funding cuts.
We know this is about much more than health insurance. It is about protecting jobs, being able to pay bills, being able to see a doctor when we are injured or sick, and watching small businesses succeed. Saving Medi-Cal is the right thing to do so that our families, communities and economy can be prosperous and healthy.
