Healthcare systems in San Diego are experiencing positive financial and operational impacts from California's recent expansion of Medi-Cal benefits for undocumented immigrants.
Effective New Year's Day, the change allows individuals aged 26 to 49 to enroll in the state's health insurance system, irrespective of immigration status, completing the age coverage spectrum.
Governor Gavin Newsom's move to expand Medi-Cal has stirred political debate, with Democrats generally supporting the decision and Republicans often expressing concerns about diverting funds from American citizens.
San Diego County Supervisor Jim Desmond, echoing Republican sentiments, expressed reservations about local resources funding services for recent immigrants. In contrast, local medical providers, such as Chris Van Gorder, CEO of Scripps Health, adopt a more practical stance, acknowledging that hospitals are already treating undocumented migrants.
Van Gorder emphasizes that any expansion of Medi-Cal eligibility, ensuring payment for existing patients, is beneficial. However, he notes that stagnant hospital base rates for Medi-Cal over the past decade fail to cover the actual cost of care.
According to the American Hospital Association, hospitals received only 88 cents for every dollar spent on patient care in 2020. Sharp HealthCare sees potential benefits in easing crowded emergency departments with the expansion, particularly for those aged 26 to 49 qualifying for restricted Medi-Cal benefits in emergencies or during childbirth in San Diego County. The hope is that extending full-scope benefits to this age group will encourage preventive care and scheduled services, diverting healthcare from costly emergency settings to more cost-effective clinics.
Approximately 700,000 adults aged 26 to 49 are estimated to be impacted by the state's expansion. The precise number in San Diego County remains uncertain, but around 34,000 individuals previously under restricted Medi-Cal coverage for emergency care transitioned to full-scope benefits on January 1.
