California Just Cut Off 900,000 from Medicaid: Are You Affected by this Mass Removal?

By: Omprakash

On: Thursday, August 7, 2025 7:57 AM

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Over the past two years, hundreds of thousands of people have been dropped from a California health care plan, according to a non-profit journalism and research group focused on health policy.  Medicaid coverage was expanded after the COVID-19 outbreak, and as part of the unravelling process occurring nationwide, about 900,000 Americans were disenrolled from the program in the state. 

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California renews over a million members a month on average, according to the department, and “discontinuance rates may vary as members ‘cure’ their case” by supplying any missing info and regaining coverage.  The March 2025 enrollment number, 14,724,647, was significantly higher than anticipated, according to the California Department of Health Care Services’ Medi-Cal Enrollment and Renewals Dash.

California Just Cut Off 900,000 from Medicaid

Recent MediCal coverage losses in California have been widespread, depriving roughly 900,000 low-income citizens of health insurance as part of a nationwide unwinding process.  This widespread termination is a direct result of eligibility reviews from the epidemic period being resumed and evaluated under more stringent process guidelines in the midst of larger state and federal funding reductions. Serving more than one in three Golden State citizens, MediCal provides hospital care, mental health services, maternity support, dentistry and eye care, and long-term services like in-home supportive care to its roughly 15 million clients.  In addition to the growing expense of benefits and the shortage of workers, California is also facing a nearly 19 percent reduction in Medicaid funding over the next ten years.

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Procedure violations during eligibility renewals are a major contributing factor to the disenrollment wave.  Annual MediCal eligibility checks were suspended by health systems throughout the epidemic, but when they were restarted, administrative obstacles resulted in a large number of terminations.  About 90% of coverage losses were due to procedural issues rather than shifts in eligibility.  The independent KFF reported that the number of Californians enrolled in Medicaid, which is referred to locally as Medi-Cal, decreased from 14.29 million in March 2023 to 13.39 million in March 2025. This modification was made following the expiration of a federal regulation that mandated states to continue providing members with coverage throughout the COVID-19 public health emergency.

California Medicaid Healthcare Plan – Overview

Post nameCalifornia Just Cut Off 900,000 from Medicaid: Are You Affected by this Mass Removal?
DepartmentDepartment of Health Care Services
CountryCalifornia
RecipientsEligible Medicaid recipients
Year2025
CategoryFinance
Official websitedhcs.ca.gov

Who lost Medicaid Coverage?

Working-age persons, especially undocumented immigrants and low-wage workers who were previously eligible under post-pandemic expansions, make up the majority of those losing MediCal.  Despite their relative protection, seniors and those with disabilities remain at risk as cost-cutting initiatives jeopardize optional services like IHSS (In-Home Supportive Services).  Despite high labor force participation rates, new enrollment limitations and increased documentation requirements affect many Latino MediCal enrollees, who make up around 52% of the program’s membership, far greater than their share of the state’s population.

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Communities of Latinos and immigrants are disproportionately affected by these regulatory changes.  A freeze on adult undocumented enrollment beginning in January 2026 was just approved by the state legislature.  People between the ages of 19 and 59 may also have to pay monthly charges for coverage continuity starting in 2027.  In light of the state’s estimated $12 billion deficit, these measures, which are a scaled-down version of a prior $100 a month proposal, aim to cut billions.

California Just Cut Off 900,000 from Medicaid

Beneficiaries’ Opinion on Eliminating Medicaid

Due to a number of factors, including more unemployment and a requirement that states refrain from recertifying beneficiary eligibility until the “public health emergency” was declared over in exchange for greater federal funds, Medicaid enrollment skyrocketed during the pandemic.  In short, millions of people joined up during the pandemic, and in spring 2023, their eligibility could only be examined.   The way this has transpired and what it implies could occur when Medicaid work requirements, which provide their own set of administrative challenges, are put into place, is cause for serious concern. 

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First, those who qualify for insurance shouldn’t be denied it. Negative health consequences will ensue.  The second is to direct those who are no longer eligible for Medicaid to alternative options, like subsidized coverage through the ACA marketplace. Finally, there are regrettable disparities as a result of the differences in state procedures for Medicaid eligibility evaluations.

How to Eliminate 900,000 Beneficiaries from Medicaid?

Medicaid is cut by more than $1 trillion nationally by the contentious Republican-led federal “Big Beautiful bill” tax and spending plan.  In California, experts caution that it may result in significant cuts to SNAP food assistance and provider reimbursement rates that endanger service networks, leaving up to 3.4 million people without health insurance.  To address this imbalance, state authorities are asking for billions more in funding, pointing to increased expenses for treatment for undocumented immigrants and greater eligibility if asset checks are removed in 2024.

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However, these budget cuts also lock up federal funds, further taxing an already overburdened system.  States were not allowed to remove the majority of Medicaid members, even if their eligibility altered, and enrollment soared during the pandemic as millions of people lost their jobs or income.  States resumed eligibility checks when the public health emergency ended, however.  However, there has been a great deal of variation in their methods. Unlike states like Texas and Florida, where coverage declined by double digits, California, like New York, reviewed eligibility more slowly and deliberately, leading to a very moderate 6.3% loss.

Official WebsiteClick Here
HomepageMoyle-Council.org

FAQs

What is the medical benefit limit in California?

The medical benefit limit in California is based on family size and poverty level.

How many citizens were eliminated from Medicaid?

Around, $900,000 beneficiaries will be eliminated from Medicaid.

What is the Medicaid program in California?

Medical program provides free or low-income health coverage for individuals, adults, children’s or families who qualify.

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