Lawmakers in deep blue state demand audit over skyrocketing healthcare costs: ‘Alarming nature’

A group of California Republican lawmakers is asking for a formal audit of the state’s Medicaid program, known as Medi-Cal, after its costs have gone up significantly after a law went into effect last year allowing illegal immigrants to enroll.

The Medi-Cal program is $2.8 billion over budget, as it was originally expected to cost $6 billion this fiscal year. Since then, the governor’s office has requested $6.2 billion in two separate loans.

“On March 12, 2025, the Governor informed the legislature that Medi-Cal was insolvent and could not continue to pay all of its obligations to healthcare providers,” the letter states.

NEWSOM ASKS FOR NEARLY ANOTHER $3B FOR STATE HEALTH PROGRAM OVERWHELMED BY ILLEGAL IMMIGRANTS

“Despite the alarming nature of this problem, the Governor has failed to provide an explanation for why Medi-Cal costs are far greater than what was budgeted. Many are concerned that continued growth in the cost of Medi-Cal benefits for undocumented immigrants is a major driver of the cost overruns,” the letter continues.

CLICK HERE TO READ MORE IMMIGRATION COVERAGE

Specifically, the letter asks what the “future estimates for enrollment of undocumented immigrants” are in the program, as well as “cost containment strategies” to make sure that it does not harm Californian’s healthcare access.

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The lawmakers are also seeking answers about why the forecast of the cost was incorrect.

The letter was led by Republican Assemblyman Carl DeMaio, who went viral for questioning a state budget official amplifying the spending issue earlier this year. Assembly Republican Leader James Gallagher and Republican Reps. Kate Sanchez, Leticia Castillo, Stan Ellis, Tom Lackey, Phillip Chen, Heath Flora and David Tangipa also signed the letter.

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Gov. Gavin Newsom previously said illegal immigrants being allowed to enroll in Medi-Cal is a “partial” part of the problem, but his office argues that overall rising healthcare costs led to higher than expected Medicaid program costs in other states as well.

“With tough fiscal choices ahead, Governor Newsom, jointly with Pro Tem McGuire and Speaker Rivas, will evaluate proposals to rein in long-term spending — including in Medi-Cal — while working to protect the core health and social services Californians rely on,” Newsom spokesperson Izzy Gardon told Fox News Digital in a statement last month. 

Newsom’s office was not immediately available for comment.