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California Faces Financial Pain If Senate Health Bill Passes: State Report

California Gov. Jerry Brown signed a Medicaid expansion into law as part of t...

Photo by Rich Pedroncelli AP

Above: California Gov. Jerry Brown signed a Medicaid expansion into law as part of the state's budget authorization in 2013.

California faces a major budget shortfall if the Senate health bill passes, according to a new state analysis.

Devastating. That is the word state officials use to describe the effects of the Senate health care bill on California in a new analysis by the California Department of Health Care Services.

The report found that by cutting Medicaid funding, the Senate bill would shift an enormous amount of costs from the federal government to the state.

In particular, California would face a $3 billion shortfall in 2020. That would grow to more than $30 billion a year by 2027.

To put it another way, the report says the Obamacare replacement bill would create a $114.6 billion shortfall in California between 2020 and 2027.

In addition, the report says the measure would phase out funding the state has used to expand the Medi-Cal program.

Since 2014, the state has given Medi-Cal coverage to nearly 4 million additional people.

State officials say to maintain that expansion, California would have to spend five times the amount it originally planned for.

Senators will take up the bill when they return from their July Fourth recess.


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