Governor Newsom’s latest proposal to reinstate harsh Medi-Cal asset tests on seniors while maintaining benefits for undocumented immigrants has sparked outrage among California taxpayers who feel abandoned by their own government.
Key Takeaways
- Governor Newsom proposes reinstating a $2,000 asset cap for seniors and disabled citizens to qualify for Medi-Cal, a limit unchanged since 1989
- The proposal would save $94 million this fiscal year while penalizing elderly and disabled citizens who have contributed taxes for decades
- Critics argue the policy prioritizes undocumented immigrants over taxpaying citizens, as Newsom only suggests “freezing” new immigrant enrollment rather than eliminating it
- The harsh asset test could force seniors to deplete savings, sell homes, or enter nursing facilities at greater expense to the state
- Medi-Cal costs have skyrocketed by $20.5 billion over the past decade, partly due to extending coverage to undocumented immigrants
Newsom’s Medi-Cal Asset Test Targets Vulnerable Citizens
Governor Gavin Newsom’s latest budget proposal has ignited fierce debate across California by reintroducing a stringent asset test for seniors and disabled citizens to qualify for Medi-Cal healthcare benefits. The proposed test would limit eligible individuals to less than $2,000 in assets – a threshold unchanged since 1989 – while merely freezing, not eliminating, new enrollment for undocumented immigrants. The asset cap would force elderly Californians to choose between healthcare coverage and maintaining minimal financial security, effectively requiring extreme poverty for continued medical care.
The asset test would evaluate savings accounts, cash, second vehicles, home values, and even retirement funds, potentially disqualifying many seniors who have worked and paid taxes their entire lives. While defending this harsh policy, Newsom cites budget constraints that have been significantly exacerbated by his previous decision to extend Medi-Cal coverage to all low-income undocumented immigrants. This decision has contributed substantially to the program’s ballooning costs, which have risen by $20.5 billion over the past decade.
Citizens Face Impoverishment While Illegal Immigrants Retain Benefits
The proposal’s impact on longtime California taxpayers is devastating while the burden on illegal immigrants remains minimal. Cynde Soto, a quadriplegic who relies on Medi-Cal, would lose her health insurance due to having saved slightly more than the allowed $2,000. Similarly, Al Sanderson, a disabled senior, faces losing access to in-home care and being forced into a nursing facility. Meanwhile, Newsom’s budget only suggests freezing new enrollment for undocumented adults rather than rolling back the expensive and controversial expansion that has strained state finances.
“I worked 40 years of my life never receiving help, always paying taxes. I was glad to do it because I thought maybe when I need it, somebody will be able to help me. I didn’t know how stupid the system is,” said Richard Dallatorre, a Medi-Cal recipient who requires caretakers to maintain independent living.
Even Newsom has acknowledged that coverage for undocumented immigrants is “partially” contributing to Medi-Cal’s funding problems, yet his solution disproportionately targets the state’s most vulnerable citizens rather than addressing the root issue of unsustainable benefits for non-citizens. Health advocates argue the $2,000 asset limit is completely unrealistic given California’s high cost of living and would leave seniors with no financial cushion for emergencies.
Budget Shortfalls Expose Misplaced Priorities
The Newsom administration claims the proposal aims to save $94 million this fiscal year and $791 million by 2028-29, but critics argue this approach is both cruel and shortsighted. Disability Rights California has condemned the proposal, stating it “demonstrates a continued willingness on the part of the governor to sacrifice the health and human services of California’s people, particularly the disabled, poor, and elderly populations of this abundant state.” Assemblymember Pilar Schiavo and other critics warn the policy could ultimately cost taxpayers more by increasing homelessness among seniors and forcing them into expensive nursing facilities.
“While we understand the reality of budget shortfalls and that cuts will sometimes be necessary, the priorities and reality of this May revision are even worse than what we imagined. It demonstrates a continued willingness on the part of the governor to sacrifice the health and human services of California’s people, particularly the disabled, poor, and elderly populations of this abundant state,” said Disability Rights California in a statement.
Newsom‘s defense of the policy reveals the fiscal recklessness that created this crisis: “None of this is the kind of work you enjoy doing, but you’ve got to do it. We have to be responsible. We have to be accountable. We have to balance the budget.” This belated realization of fiscal responsibility comes after years of expanding benefits to illegal immigrants while neglecting the needs of taxpaying citizens. The proposed reinstatement of the asset test, which Newsom himself eliminated in 2024 after raising it to $130,000 in 2022, represents a painful reversal that will predominantly harm elderly and disabled Californians who have contributed to the system for decades.
