How will California cover its looming healthcare funding gap after voters rejected the $100 billion billionaire wealth tax?

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California will not replace the rejected billionaire tax with a single new $100 billion source. Instead, officials are likely to patch the healthcare gap through a mix of cuts, targeted taxes, federal waivers and administrative savings, while accepting that some coverage and services may shrink. The immediate pressure is Medi-Cal. State and outside estimates say California could lose roughly $30 billion a year in federal support under recent federal changes, far more than the temporary revenue Proposition 40 might have generated. The enacted 2026-27 health budget already points to the state’s fallback strategy: using a larger managed-care organization tax, delaying some provider cuts, tightening eligibility in some areas, and trimming benefits for certain groups. Lawmakers have also restored asset limits for some seniors and people with disabilities, a sign that eligibility restrictions are back on the table. Beyond budget cuts, policymakers are studying a “fair share” employer assessment on companies whose workers rely heavily on Medi-Cal. Supporters argue it would shift some costs to low-wage employers. State leaders are also emphasizing fraud enforcement, automatic renewals for eligible patients, and other administrative changes aimed at reducing waste and wrongful disenrollment. Other tools include drawing more money through provider fees, hospital financing programs and bonds or grants through state financing authorities for safety-net providers. California may also see…

California Voters Reject 5% Billionaire Tax, Dealing Blow to Progressive Agenda

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California Voters Reject 5% Billionaire Tax, Dealing Blow to Progressive Agenda

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