California Leaders Tussle With Health Industry Over Billions of New Dollars for Medi-Cal

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Gov. Gavin Newsom and state lawmakers are working with health industry leaders to reach an agreement on billions of new dollars for Medi-Cal before a November vote. An initiative backed by various health care sectors would provide funds to increase payment rates for health care professionals serving Medi-Cal patients. Newsom initially supported this but later proposed diverting the money to reduce the state’s budget deficit. The initiative has public support and, if passed, would override any compromise Newsom makes. Proponents believe it is essential for health equity, addressing the spotty access to care for Medi-Cal patients, particularly in specialty care.

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