California Governor Gavin Newsom has proposed an "asset test" for seniors to prove eligible for Medi-Cal health care benefits for low-income Californians in response to budgetary underpayments. To qualify, people must have less than $2,000 in assets to qualify.
The governor said the reasons for the increase include “higher total enrollment, pharmacy costs and higher cost of custodial care.”
He said Medi-Cal expenses have increased by $20 billion over the past decade.
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“Some of the most important factors to this growth are the continuous coverage requirements for Covid-19 and the implementation of major policy changes such as the complete elimination of asset testing for older adults and the full scale expansion of all earned eligible Californians, regardless of immigration status,” he wrote.
The assets included in the test will include wages, money in a bank account, cash on hand, a second car, home value and retirement funds. Applicants with assets of more than $2,000 will not be eligible for Medi-Cal.
California Governor Gavin Newsom has proposed an "asset test" to demonstrate eligibility for health care benefits for low-income Californians in response to budgetary underpayments. (Andrew Harnik/Getty Images)
Newsom said in his 2025-26 budget proposal that Medi-Cal's costs have increased dramatically and continue to outpace revenue. The plan cost $37.6 billion last year and is expected to increase $10 billion next year without cutting.
Along with low-income adults, many elderly and disabled people use Medi-Cal benefits, including home care services.
In the decades before 2024, older people need asset testing to prove they are eligible for Medi-Cal, and Newsom's proposal will restore it.
Newsom wrote that asset testing in the fiscal year will save $94 million, up $791 million by fiscal year 2028-29.
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Newsom wrote that asset testing will save $94 million in the current fiscal year and $791 million in the 2028-2029 fiscal year. (Chip Somodevilla/Getty Images)
The nonprofit’s disability rights California state says the proposal will cause “tremendous harm” to Californians.
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“While we understand the reality of budget shortages and sometimes need to cut, the priorities and reality of this situation may be worse than we think,” the organization said in a statement. “This shows the governor’s continued willingness to sacrifice the health and human services of the California people, especially those with disabilities, poor and elderly people in this rich country.”
The team added that asset testing “efficiently requires extreme poverty to continue to access critical health care.”
In the decades before 2024, older people need asset testing to prove they are eligible for Medi-Cal, and Newsom's proposal will restore it. (Getty)
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According to the Los Angeles Times, the governor defended his proposal, saying, "It's not the kind of work you like to do, but you have to do it. We have to be responsible. We have to be responsible. We have to be responsible. We have to be balanced."
Fox News Digital has contacted Newsom's office for comment.