
"It's the first wave of what is expected to be several rocky years financially for a county that operates four public hospitals and 15 clinics in the wake of Republicans' decision to slash $1 trillion from the federal Medicaid program over the next decade. In Santa Clara County, one in four residents rely on the publicly funded health insurance program for low-income and disabled individuals, which is known as Medi-Cal in California."
"While new work requirements that determine eligibility won't take effect until December 2026 - a change that could result in several million state residents losing health care coverage - County Executive James Williams said the county immediately felt the impact of the bill via cuts and freezes to several Medicaid-related revenue streams. Some of these payments helped bridge the gap between the actual cost of providing health care services and Medicaid reimbursement rates."
Santa Clara County lost $223 million in federal Medicaid revenues this fiscal year, forcing immediate budget adjustments across its public hospitals and clinics. The county operates four public hospitals and 15 clinics, and one in four residents depends on Medi-Cal. Federal plans to cut $1 trillion from Medicaid over the next decade and new work requirements effective December 2026 risk broader coverage losses. Cuts and freezes to Medicaid-related revenue streams removed supplemental payments that helped cover gaps between service costs and reimbursement. County officials are seeking $200 million in health-system savings for mid-year budget approval.
Read at The Mercury News
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