Medi-Cal cuts in GOP budget bill could deal 1B blow to Santa Clara County health system

Congressional Republicans’ budget bill could inflict over $1 billion in losses on Santa Clara County's public hospital system, impacting one in four residents who rely on Medi-Cal for healthcare. This funding is crucial, as Medi-Cal represents the largest federal revenue source for the county, which operates four hospitals and 15 clinics. The anticipated cuts come just months after significant expansions in the county's health services. County Executive James Williams indicated that the effects of these cuts may not be felt until 2027, as lawmakers scheduled most reductions to start after the midterm elections. The bill also introduces work hour reporting requirements, which could hinder access to care for those who qualify.

Williams emphasized that the county will still have to provide care for uninsured individuals, even as revenues decline. Additionally, California's upcoming budget cuts will further strain Medi-Cal, targeting vulnerable populations. Supervisor Betty Duong expressed concern that the bill undermines the county's ability to maintain its social safety net.