California leaders tussle with health industry over billions of new dollars for Medi-Cal

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Gov. Gavin Newsom, state lawmakers, and health industry leaders are under pressure to reach an agreement on billions of new dollars for Medi-Cal before a November ballot initiative. The initiative, supported by various sectors of the state’s health care industry, aims to increase payment rates for health care professionals serving Medi-Cal patients. However, Newsom has proposed diverting most of the funds to reduce the state’s budget deficit. The initiative would override any compromise Newsom makes with lawmakers and secure increased funding for Medi-Cal in the future. Proponents argue that higher rates would improve access to care for Medi-Cal patients, who often face challenges in seeing specialists due to low payment rates.

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