Medicaid Archives - 吃瓜不打烊 /topics/medicaid/ 吃瓜不打烊 produces in-depth journalism on health issues and is a core operating program of KFF. Fri, 24 Jul 2026 13:35:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.6 /wp-content/uploads/sites/8/2023/04/kffhealthnews-icon.png?w=32 Medicaid Archives - 吃瓜不打烊 /topics/medicaid/ 32 32 161476233 A Shrinking Safety Net /podcast/what-the-health-456-federal-safety-net-shrinking-july-23-2026/ Thu, 23 Jul 2026 17:45:00 +0000 /?p=2263410&post_type=podcast&preview_id=2263410 The Host
Julie Rovner photo
Julie Rovner 吃瓜不打烊 Read Julie's stories. Julie Rovner is chief Washington correspondent and host of 吃瓜不打烊’ weekly health policy news podcast, "What the Health?" A noted expert on health policy issues, Julie is the author of the critically praised reference book "Health Care Politics and Policy A to Z," now in its third edition.

Enrollment in the federal food stamp program 鈥 the Supplemental Nutrition Assistance Program, known as SNAP 鈥 is down by more than 10% nationally, according to a new report, and in some states by as much as half. Those numbers are falling as states enact changes ordered by the GOP budget bill passed in 2025. The drop is much steeper than was predicted and could portend a similar fate for those on Medicaid, as states prepare to implement many of the same changes ordered for SNAP. 

Meanwhile, amid a rise in reported cases of the gastrointestinal ailment caused by the parasite cyclospora, federal public health officials once again struggle to explain to a confused populace how to stay safe. 

This week’s panelists are Julie Rovner of 吃瓜不打烊, Joanne Kenen of the Johns Hopkins Bloomberg School of Public Health and Politico Magazine, Alice Miranda Ollstein of Politico, and Margot Sanger-Katz of The New York Times.

Panelists

Joanne Kenen photo
Joanne Kenen Johns Hopkins University and Politico
Alice Miranda Ollstein photo
Alice Miranda Ollstein Politico
Margot Sanger-Katz photo
Margot Sanger-Katz The New York Times

Among the takeaways from this week’s episode:

  • Participation in the nation’s food stamp program is down, with children representing nearly half of those losing benefits, according to a recent analysis. Some states are showing much larger drops than others. The GOP-passed budget law imposes penalties for errors, leaving states spooked about the possibility of losing funding 鈥 and suggesting problems ahead for the full rollout of Medicaid work requirements next year.
  • President Donald Trump’s immigration crackdown is increasing pressure on the health system, in particular on the availability of home-based and long-term care workers 鈥 including those who fill critical roles such as serving food and driving patients to medical appointments. Research has shown that the presence of immigrant workers has a protective effect on the health of their charges.
  • Responding to revelations that doctors are reaping large payouts from the surprise-billing arbitration process, the Trump administration this week released information showing a spike in such payments and noted the need for changes to the law 鈥 without specifying what kind of changes. That law, the No Surprises Act, took effect in 2022 with the primary intention of shielding patients from big bills when they unknowingly receive out-of-network medical care.
  • In other news, the Pentagon is imposing testosterone tests for many service members. The cyclospora outbreak continues. And the Trump administration announced plans to withhold Medicaid funding from California and Minnesota over accusations of fraud.

Also this week, Rovner interviews Sen. Bill Cassidy (R-La.), chairman of the Senate Health, Education, Labor, and Pensions Committee, as part of the “How Would You Fix It?” series.

Plus, for “extra credit,” the panelists suggest health policy stories they read this week that they think you should read, too: 

Julie Rovner: The New York Times’ “,” by Arijeta Lajka, Isabelle Niu, Mark Boyer, James Surdam, and Dan T. Peters.

Joanne Kenen: Stat’s “,” by Adam Feuerstein.

Margot Sanger-Katz: NPR’s “,” by Andrea Hsu.

Alice Miranda Ollstein: Roll Call’s “,” by Ariel Cohen.

Also mentioned in this week’s podcast:

click to open the transcript Transcript: A Shrinking Safety Net

[Editors note: This transcript was generated using transcription software. It has been edited for style and clarity.] 

Julie Rovner: Hello, from 吃瓜不打烊 and WAMU Public Radio in Washington, D.C. Welcome to What the Health? I’m Julie Rovner, chief Washington correspondent for 吃瓜不打烊. And, as always, I’m joined by some of the best and smartest health reporters covering Washington. We’re taping this week on Thursday, July 23, at 10:30 a.m. As always, news happens fast, and things might have changed by the time you hear this. So, here we go.  

Today we are joined via video conference by Margot Sanger-Katz of The New York Times. 

Margot Sanger-Katz: Hello. 

Rovner: Alice Miranda Ollstein of Politico. 

Alice Miranda Ollstein: Hi, Julie. 

Rovner: And Joanne Kenen of the Johns Hopkins Bloomberg School of Public Health and Politico Magazine. 

Joanne Kenen: Hi, everybody. 

Rovner: Later in this episode, we’ll have our “How Would You Fix It?” interview with Louisiana Republican Sen. Bill Cassidy, chairman of the Senate Health, Education, Labor, and Pensions Committee. But first, this week’s news. I want to start this week with what I’m calling the “Shrinking Safety Net.” The Center on Budget and Policy Priorities is reporting that overall participation in SNAP [Supplemental Nutrition Assistance Program], the nation’s food stamp program, is down by more than 4陆 million people. That’s about 11% between last year’s enactment of the Republican budget bill and this past April. In Arizona, nearly half the recipients have left the rolls, and in Louisiana, Florida, and Oklahoma, it’s closer to 20%. Nearly half of those losing benefits are children, according to the analysis, and this is before some of the biggest cuts to the program even take effect. What does this mean, and what does it portend for Medicaid cuts that the SNAP declines are so much larger than were anticipated when this bill was passed in 2025? 

Sanger-Katz: The Republican bill put a lot of new burdens on states that to administer SNAP, and it created these penalties that if they had a lot of errors, then they were going to end up having to pay a much larger percentage of that total bill. And I think what’s happened is that that sort of spooked a bunch of states, and I think Arizona in particular, is facing some complicated politics around the program. And so I think in their effort to reduce the error rate, they’ve created a lot more paperwork for beneficiaries to prove that they’re eligible, because the state doesn’t want to take a chance that if they go back and check later, that there will be some mismatch and they will get dinged for making an error. So I think there are real lessons for what’s going to happen in Medicaid. The SNAP changes are happening a little faster than the changes to Medicaid. But I think there are a lot of the same incentives. There also are going to be increased penalties for states that have a high error rate in Medicaid, and there are going to be additional paperwork requirements added to Medicaid for people to prove that they’re complying with the work requirement and certain other things that didn’t exist before. 

Rovner: And as we’ve said a bunch of times before, states who are anticipating these cuts are already making cuts because they have to do budgets before some of these cuts take effect. Joanne, you wanted to say something? 

Kenen: No, I think that Medicaid changed suddenly on June 1, right? I mean, the coverage losses were expected under the legislation. That’s how the money was saved. CBO says people will lose coverage, and that’s where the savings were, by and large. The interim final rule that dropped 鈥 but we didn’t know how bad it would be. We didn’t know how many people, partly because states had a fair, they had certain things they had to do, but they had a lot of flexibility in how to do them. So that the coverage losses were an unknown, right? They might have been as bad as the liberal critics said, and they might not have been as bad as some of the defenders of the law said. It was a wait-and-see. On June 1, as we’ve talked about before on the podcast, CMS [Centers for Medicare & Medicaid Services] dropped an interim final rule, and it changed things a lot. And it basically took away a lot of the state flexibility. And instead of letting states say, “OK, you have such-and-such a disease. We know you have such a disease. We have your medical records. We have the coding from the bills from Medicaid. This is, clearly, you can’t work.” That’s no longer good enough. You can’t use their medical history. Every single person who’s sick on Medicaid, who can’t work, who contends they can’t work, has to go for a workup by a physician. Right now we’re not sure if it’s other health providers, who really isn’t trained in disability medicine. Manatt just came out with a study just a day or two ago saying that the coverage losses are going to be much higher than anticipated. And there’s a lot of hurdles for individuals, and there’s a lot of costs for the states. So, like, the SNAP is now, like, OK, that was SNAP, and this is Medicaid. Now it’s just much more alarming to watch what happened in SNAP. 

Sanger-Katz: I think another lesson from SNAP is that we’re going to see a lot of state variability in the outcomes. You know, these are both programs, they’re federally funded, but they’re administered by states, and states have different capacities. They have different bureaucracies. They have different tolerances for spending money on these programs. And we’re seeing, even in SNAP, there’s kind of like people are losing coverage everywhere. But like in Arizona, it’s like half of the people. And I think that what we’re likely to see something similar play out in Medicaid, where some states either are just not willing to spend the money, or they’re very scared of penalties, and so they’re like really have very strict criteria. And other ones just, like, won’t be good at it, and they’ll make a lot of mistakes, and that will cause people to lose coverage too. I think every state is different. Every state is building this from the ground up, and there are going to be different levels of policy planning, risk tolerances, and just like general glitchiness as they roll it out. And I think we’re seeing that in SNAP. It’s a lesson of what we’re seeing now that will carry over almost certainly. 

Ollstein: And to that point, I think, in some places, like Joanne said, you are going to have to, you know, basically get a doctor’s note in order to keep your Medicaid coverage. But other states are trying right now to come up with some kind of formula to make that not have to happen. So saying, you know, if you have X many inpatient visits per year and Y many outpatient visits per year, or you have this many drugs that you’re on, then that is enough proof that you are too medically frail to work part-time. And so they’re trying to come up with ways to just pull it from data and not have to rely on patients and providers and give them this extra burden. But we’ll see if that’s approved by CMS. We’ll see if that’s successful. I mean, CMS’ guidance left states a little bit in the dark about how to operationalize this. 

Rovner: Well, that is the perfect setup, I would say, for my next question, which is we have a couple of stories from my colleagues here at 吃瓜不打烊 about complications to come from the Medicaid cuts, particularly the work requirements that states need to have in place by next Jan. 1. One of the stories, by Sam Whitehead, is about doctors who are worried about being swamped by patients who need medical documentation that they’re too frail to be subject to the work rules. Said one doctor in the story. “We’re trained to learn about someone’s symptoms, make diagnoses, treat them. We are not trained to make these kinds of work determinations.” The other story, by Rachana Pradhan, Samantha Liss, and Kate Wells, is about how an automated eligibility system from IT giant Deloitte is rejecting eligible people with disabilities in several states, including Michigan, Tennessee, and Texas. Deloitte works on Medicaid eligibility systems in more than half the states. It’s heavily involved in creating these IT systems for their work rules. Fair to say, both of these things, as you guys were all leading up to, do not bode well for what’s about to happen to Medicaid. 

Kenen: No, and an additional factor, it’s not just Deloitte. I mean, states had contracted with the vendors. They didn’t have a lot of time. This bill was signed into law just about a year, almost exactly a year, ago, and they had 18 months to get ready. It’s Jan. 1, 2027. This June change to the rules means they have to really rework a lot of the tech they were doing, and they were given seven months. So is this as big as healthcare.gov? No, but it’s complicated, and the sort of blueprint and tech plans they were doing now have to be modified. And they’re still waiting on more guidance. There are still unknowns. 

Rovner: For those who don’t remember healthcare.gov 鈥  

Kenen: How can anybody not remember healthcare.gov? 

Rovner: There were people who were not around in 2013, Joanne, when healthcare.gov rather dramatically failed to launch. Sorry, Alice, I interrupted you. 

Ollstein: Yeah, no, we did some reporting about this weeks ago, and basically experts told us, Look, it’s problematic if these determinations are left up to individual physicians. There can be biases. Physicians aren’t trained to make these kind of determinations, like you said. People might not even be able to reach a doctor and make an appointment to get that outcome. But they’re saying if it’s not up to physicians, that could be even worse. If it’s up to some sort of algorithm or some sort of state bureaucratic office that never even meets the person and just makes a determination, and they may not know how to appeal it. And so states are worried about it being a lose-lose situation. 

Rovner: Yeah, well, in the Deloitte story, that’s exactly what it was. It was, you know, it was basically an automated system that was bouncing eligible people, either bouncing them out or putting them in inappropriate programs for which they weren’t eligible. They were having trouble finding a real person to fix what was obviously a mistake. 

Sanger-Katz: And I think one thing that both of these stories really emphasized to me is that whatever you think about the merits of this policy change, you know, like I think there are lots of Americans who think that it is reasonable to have a work requirement for Medicaid. And I also think there are lots of people who think that you shouldn’t just get out of that because you have a medical diagnosis. That there should be some reason why you can’t work. If we’re requiring people to work, maybe we want to require people to demonstrate that they can’t work, to get an exception. But whatever you think about the merits of those arguments, this is a monumentally difficult task for states to implement. This is not an easy policy. There is no all-knowing eye that can sort of look over the Medicaid population and decide who is eligible or not eligible according to these criteria. States have to create rules. They have to create what kinds of proof they’ll allow. They have to build computer systems that can sort people and that can make these determinations. And all of that is new and is very difficult. And is very slow. States, in most cases, don’t even build their own computer systems. They work with these contractors that do it for them, and the contractors have a mixed track record in really executing in a really clean way. So, I just think, you know, when you talk to people about this, I feel like we always talk about this in healthcare. There’s like the legislation. There’s like the idea, and Congress is trying to get the idea. These are the people that we want to get Medicaid, and these are the people that we want to encourage to work in order to maintain Medicaid. I think on the theoretical level, there’s that. But then there’s like the nitty-gritty implementation, and that’s like the regulatory process, that’s the state government, that’s the procurement, that’s the contracting. And I just think there’s a lot of sand in the gears of that. This is actually not easy for states to do, and even the states that are devoting a lot of resources to it and want to get it right, and even the states that really believe in the goals of the policy are probably like just bumping into a lot of the difficulties now. 

Kenen: And many of the people affected have chronic diseases; they’re up and down. You can have good periods when you’re working. You can have bad periods when you can’t, and that’s the nature of chronic diseases for many, many, many individuals. It’s inconsistent. So if you go to the doctor on Jan. 1, that doctor really doesn’t know. I mean, this is true of mental health as well. You know, how long can you work? How consistently you work? There’s just going to be all sorts of problems, and I promise to stop there. 

Rovner: OK. Well, also this week there are two immigration-related safety net stories. First, the Trump administration has officially rescinded the Biden administration’s rewrite of the so-called public charge rules, which are designed to ensure that legal immigrants are financially self-sufficient. The new rules, or the lack thereof, give immigration agents far more leeway to decide on their own who might or might not become dependent on government benefits. Alice, you covered this back in Trump I. It ended up with lots of people who were actually eligible for benefits not using them because they feared becoming or being deemed a public charge when applying for a green card or more permanent immigration status. Any reason to think the same thing isn’t about to happen again? 

Ollstein: No, there is no reason to think that history will not repeat itself. Although I will say that the policy now is not exactly the same as it was during the first Trump administration. The new policy just gives a lot of discretion to individual immigration officers to make a determination, looking at, like, the totality of someone’s circumstances. And so, you know, Medicaid and some of these other safety net programs that people are legally eligible for didn’t used to count against someone when they were applying for a green card, and now they could. Again, it’s not mandatory that, Oh, if you’re enrolled in Medicaid, automatically you’re barred. But it is something that an immigration officer would be allowed to consider. And so, yeah, a lot of concern not only from the immigrant ICE [Immigration and Customs Enforcement] community, but from states. I mean, this could affect state budget if people are going to need to turn for uncompensated care to other providers. There’s concern from the public health community about if people don’t have coverage to get vaccinated and to get checkups. It’s not like there are islands of immigrants. This is folks [who] are incorporated into our society. We live in a society, as we discovered during covid, and what impacts some people impacts everybody. 

Rovner: Yeah, and, I think as Margot said, it’s one of these things where the concept sounds great, and the carrying it out is a lot harder. Well, also a couple of weeks ago, we talked about how nursing homes and assisted living facilities are freaking out about the repeal of temporary protected status for immigrants from Haiti and Syria because so many of them work in the long-term care space. This week,  about how this immigration crackdown is reaching even further, to seniors who don’t yet need medical services but still require help with routine activities, who live in these, you know, senior buildings. There’s already a labor shortage for home health aides and others in eldercare, which is generally very hard work for very low pay. This could spiral into a real crisis. We’re going to end up with Gen X and millennials having to take care of their own baby boomer parents. 

Sanger-Katz: There was a really interesting study that was published a few months ago from Jonathan Gruber, the economist at MIT, and some of his colleagues that basically found that increases in the population of immigrants in a given place actually reduced mortality among Medicare beneficiaries. It seems really clear that immigrants are a really important part of the caregiving workforce in America right now. And, as you said, Julie, it’s home health workers, it’s nursing home employees, it’s people who work in hospitals, and it’s also people who are doing some of this kind of, like, informal elder care, helping out in assisted livings, helping people at home. You know, they may not be providing healthcare services, but they are helping elderly people who have healthcare needs. 

Rovner: It’s the people who work in the dining rooms. It’s the custodians in these senior buildings. I mean, it’s the people who, you know, who help people get around and drive them to doctor’s appointments. 

Sanger-Katz: I felt like that study 鈥 I was really struck by, because you get the sense that it’s not just that we see these people in these jobs, but that having more of them around actually seems to have a health protective effect for the people that live there. Because I think it does make it easier to staff all of these jobs and to staff them with people who are competent and who want to do that kind of work. 

Kenen: And who have language skills. There’s actually been studies showing that it helps to have more Spanish-speaking staff in nursing homes and rehab facilities. 

Rovner: All right. Well, meanwhile, Margot, since you are here, let us talk about surprise medical bills. A few weeks ago, we talked about the blockbuster story you wrote with Sarah Kliff about how some doctors were getting gigantic multiples of what Medicare or private insurance would have paid through the negotiation system that was set up to settle claims between insurers and providers. Now the administration says they may need to fix it? Catch us up. 

Sanger-Katz: Yeah, I mean this was a bit of a surprise to me, I will say.  that sort of gave us a sense of the scope of the system. Wasn’t hugely surprising, but the top-line numbers are. It looks like the amount of money that this system has awarded to doctors and other healthcare providers increased from around $4 billion in 2024 to $14 billion in 2025. So you can just like really see there’s been a huge growth in the number of cases, but it also seems like doctors are winning higher awards per case. And so, what’s happening is that the overall cost of the system has really ballooned. The Trump administration has said very little about this. They did finalize one regulation that had been proposed in the Biden administration that was kind of technical fixes. And yesterday they said that people are gaming the system and that they need to, quote, “clean it up.” So I do think this is the first indication we’ve seen that there is concern by Trump officials that there may be a problem with this arbitration system that doctors are using to resolve these disputes. But they provided no specifics at all about what they will do, what policy avenues they will pursue, and, you know, in a lot of my conversations with the players in this system, people have not identified, like, really obvious, easy places where the regulators can make big changes. I think there are some small changes that the regulators can make, but almost everyone that I talk to about this problem seems to think that Congress probably has to make changes to address some of the excessive spending that we’re seeing. And there seems to be very little appetite for that. So I’m really looking forward to seeing what it is the Trump administration has in mind, what kinds of policies they will pursue here. But, based on what they’ve said so far, I don’t know what they’re going for. And I would say, based on what I know about this topic, it is not obvious to me what the easy levers are for them to pull. 

Rovner: And I will add that I 鈥 in my interview with Sen. Cassidy, I asked him about this, and he kind of demurred, suggesting that, as you will hear, that, Well, if we can fix problems with price transparency in general, that could fix this problem. Because then people won’t end up going to the doctors who are going to go to arbitration and win, you know, multi-$100,000 awards from these arbitrators. But I think you’re right, Margot. I think we’ll see. 

Sanger-Katz: I will just say, to push back on what Sen. Cassidy apparently told you, is one thing that really has worked about this law is patients are completely protected. In these situations where these large arbitration awards are being generated, patients are never asked to pay more than they’re in network cost sharing. And so I don’t know how realistic it is to ask patients to change their shopping behavior in order to resolve these high payouts. I think that the incentives probably really have to be focused much more on the insurance companies and the healthcare providers themselves. 

Rovner: Yeah, well, we will see how that goes. All right, next: testosterone testing at the Department of Defense/War. Really. Secretary Pete Hegseth has ordered that male service members over age 30 will be required to be screened for, quote, “testosterone deficiency” annually, although testosterone replacement therapy, if a deficiency is found, will be voluntary. Hegseth said this is necessary for troops to operate, quote, “at their absolute best.” But doctors warn that rather than maintain military readiness, inappropriate hormone therapy can cause infertility or increase the chance of heart rhythm changes and bone fractures, and that screening at age 30 is inappropriate anyway. And in addition to everything else, isn’t this basically gender-affirming care? I thought this administration was against that. 

Ollstein: So basically, everything that is getting restricted for trans people is much more widely used by cisgendered people. So most young people who are put on puberty blockers are not trans. Most people who get top surgery are not trans. And most people who, you know, use these hormone treatments are not trans. And so, yes, this is an example of that double standard that, you know, is seen in other areas of medicine coming into play for sure. Not to mention the medical risks that you point out. It’s just sort of a cartoonish idea of what masculinity entails and what contributes to it that doesn’t really align with science. 

Rovner: Yeah, I’ve seen just an enormous amount of head-scratching about this whole thing, I mean, I’m just wondering, is he trying to deflect attention from other things going on at his department? 

Kenen: No, there’s a whole subculture that’s all about more testosterone. We should be clear that there’s some people who do, medically, have low testosterone, just like there’s some people who medically have low thyroid or other endocrine problems. I mean, you 鈥 and there’s medication for that, and it’s appropriate if you are clinically, you know, in that category. 

Rovner: Right. And having low testosterone can cause medical problems that can be addressed. 

Kenen: Right. So if you are really low 鈥 like not, sort of, what the “Bro World” says is low 鈥 but if you’re what, you know, a medical lab says is low, yes, that’s an appropriate, it’s an appropriate treatment. But there’s this whole sort of cultural thing that more testosterone is better. And it’s just one of these things 鈥 like with many other supplements, but this is a little bit more complex 鈥 it has taken off and sort of taken a cultural thing of its own. I mean, I saw a quote and I wrote it down, and I forgot to write down where I saw it, so I apologize for that. It might have been The Times, but I don’t know. And it’s a great quote from a physician who said, “If you just dole out the testosterone, the testes will shrink, and you can’t reliably count on them coming back.” That’s just sort of, like, that’s not penetrating the cultural idea to start T-maxing. 

Rovner: Right, more testosterone is better. 

Sanger-Katz: Although I think our Health and Human Services secretary has also said that he himself takes testosterone, so I think it’s not just the defense secretary. I think there are a number of high-level Trump officials who seem to be enthusiasts for this particular kind of treatment. 

Rovner: All right, we’re going to take a quick break. We will be right back.  

So the public health panic of the week concerns cyclospora, a parasite that’s hard to detect, hard to get rid of, and causes a very nasty gastrointestinal illness. Cyclosporiasis, which is the ailment the parasite causes, is more common in the summer because it tends to infect fresh produce, mostly lettuce and herbs, and thin-skinned fruit like berries. But this summer, we’ve seen an explosion of cases (pun intended): more than 11,000 in 41 states. It’s maybe up by the time I’m even saying this. Normally, the FDA and the CDC [Centers for Disease Control and Prevention] would be all over this, trying to trace back where the infected food came from. But we know that both agencies have lost a lot of scientific staff in the past year. Over the weekend, the FDA announced that it had detected the parasite in lettuce from Mexico that wasn’t part of an initial lettuce recall that was linked to Taco Bell and many large grocery chains. Then the FDA backtracked, saying, “Yeah, it was a false positive.” But apparently, that doesn’t mean that the Mexican lettuce from produce giant Taylor Farms is not implicated. Now everybody is confused about what’s safe to eat. Joanne, you wrote an entire book about public health communication. How are we still so bad at communicating this kind of thing?  

Kenen: This is a really difficult thing, right? It’s very hard to track because it takes about two weeks for you to get symptoms. And then now, if people are sick, they’re going to sort of think that might be what they have. But you know, a few weeks ago, before there was publicity, you know, we all get tummy aches, right? And you don’t necessarily seek medical care. In this case 鈥 it can really go on and be very severe and can last, and people will seek medical care. But for some people, it’s not as 鈥 we don’t really know how many people are affected, and we also don’t know how many people are currently infected and 鈥 not yet showing symptoms. It’s big; it’s thousands. But the confusion here, I mean, first of all, you know, as you noted, CDC and FDA have both had cutbacks. There’s fewer staff. There’s fewer resources. This is really confusing, and it’s been made more confusing by absolutely everybody. There have been people who 鈥 there’s been political contacts. Taylor Farms has contacted the White House. 鈥 When the FDA found that false sample, they really did not communicate it that well. They didn’t say, This is one sample that might have led us to find yet another source, but what we’ve told you is already true. And follow our advice. They just 鈥 made it sound like it really wasn’t Taylor Farms. Then there was another thing where Taylor Farms said the FDA apologized. The FDA said they didn’t apologize, and then the Taylor Farms got a lot of attention because it deleted its social media posts. But I went onto their website last night, and it’s still there. They’re still saying that the FDA apologized. It’s confusing, too, because it’s primarily iceberg lettuce, but every summer there’s some of this, and it’s from cilantro, it’s from basil, it’s from raspberries is a biggie. So the CDC isn’t saying, OK, a lot of this is coming from Taylor Farms, but really be careful about these other things because we’re still investigating. I actually saw, I won’t identify the reporter or the publication, but in a major national report, major national paper, once the lettuce was identified at Taco Bell, this person said, “Oh, I’ve had these raspberries in my refrigerator. I’m glad I can eat them now.” Well, we don’t know that they can eat them now, you know. And then there’s the usual rumors that 鈥 everywhere there’s rumors, right? I mean, you can’t stop them. They just proliferate. So I think everybody has made a communication mistake every single step of the way. And then you have you know conspiracy theories about absolutely everything that, you know, it’s not really the lettuce. And then people think 鈥 Oh, we’re hearing it was Taco Bell in five states. Well, if I didn’t eat Taco Bell, I’m OK. No, because you could have bought the lettuce, and not all the lettuce is called Taylor Farms. And then people think, Well, if I go to a fancy organic store, it’s OK. No, you know, just don’t eat raw lettuce. The other thing I learned is it’s, like, the contamination. It’s really, really difficult. 鈥 If farmworkers are not able to, like, wash their hands well, and they were using hand sanitizer. That’s not good enough to get rid of this stuff. Chlorine isn’t good enough to get 鈥 this is really a hard parasite to deal with. 

Rovner: Yeah, basically, I think I’ve heard them say, If you want to eat lettuce, buy a head of lettuce and throw away the outside three layers, and then eat the rest

Kenen: Right, and then wash the rest of it. You’re also seeing all these recipes now online for how to stir-fry your lettuce. 

Rovner: That’s true, yes. Cooking does kill the parasite. 

Kenen: I’m growing my own. That’s my solution. 

Rovner: I’ve been picking my own. 

Kenen: Right, right. But I ran out, so I just had to plant more, but 鈥  

Rovner: All right. Finally, this week at the Department of Health and Human Services, Secretary Robert F. Kennedy announced the latest in the department’s fraud crackdown: the withholding of more than a billion dollars in Medicaid funds from Minnesota and California. HHS is accusing those Democratic-governed states of failing to properly document shared Medicaid spending, mostly for home care services. Minnesota officials told Stateline that the feds have yet to explain exactly what deferrals are for or how they calculated the amount. Similarly, California officials said HHS is targeting the state for political reasons, and that home care actually saves the federal government money by keeping people out of more expensive nursing homes. Now, states and the federal government have been fighting over fraud since the beginning of the Medicaid program, but this is really the first time HHS has withheld this level of funds. I feel like this story is kind of flying under the radar. It’s a big deal. We spent the whole first part of this podcast talking about how states are having to spend time and effort and money to get these work requirements ready. I mean, this could really cripple some states’ Medicaid programs, couldn’t it? 

Sanger-Katz: Yeah, this is real money, and this is a kind of rescinding of money that Centers for Medicare & Medicaid Services really have almost never done before. I think it’s somewhat unpredictable to state. At least with, like, the work requirement, there’s some policy planning. There’s some awareness of what the rules of the road are and things that they can do. I think there’s a couple things going on here at once. One is that there is a lot of fraud in Medicaid. The administration is pointing to a problem that is real. I feel like the comments of the California officials that home-based care for elder people saves money by keeping people out of nursing homes 鈥 that is true, but only if those services are actually being provided to people. If there are fraudulent services in that sector, which we know that there are, that’s not really benefiting anyone’s health. That’s just wasting money and giving it to criminals. So, I think the administration feels like this fraud message is really powerful for them. There’s obviously a lot of political discussion about healthcare affordability, how healthcare has gotten so expensive, and I think neither party has a really great policy answer for that. I think the Trump administration is focusing on this one. They’re saying, “Well, this is just pure waste. If we can get this pure waste out of the system, that will lower the cost of healthcare.” And so I think they’re kind of banging this drum over and over again. But I don’t know that this particular mechanism is helping states actually reduce fraud. I think it’s more punishing states that are seen as political enemies, and I do think that the loss of those dollars is really going to affect the functioning of those programs. 

Rovner: Well, meanwhile, a new poll from my colleagues here at KFF suggests that the administration’s focus on health fraud rather than healthcare cost writ large might be politically misplaced. According to the poll, nearly two-thirds of voters think the administration’s anti-fraud efforts towards Medicaid are motivated mostly by politics, and fewer than half think the effort is likely to save taxpayers money. The poll also found that more than two-thirds of respondents, including half of Republicans, say that ensuring Medicaid beneficiaries can get the care they need is a higher priority than preventing fraud. That doesn’t feel like a really winning political issue, does it? 

Kenen: No. And another thing that was interesting in that poll, I mean, the way Dr. [Mehmet] Oz speaks about it is that there’s a lot of people cheating, and it’s sort of the welfare-ization of Medicaid. You know, these are all lazy bums. I mean, it’s not that there’s nobody dishonest on the rolls in any federal program. None of us would say that, but most of the fraud is from providers, and that’s clear. These, you know, huge rings of nursing home fraud in Brooklyn, and 鈥 every few years there’s this enormous one. And I thought it was interesting on the KFF poll that the majority across both parties actually think it is the providers. It wasn’t a huge majority, I think it was 55%, thought it was the providers, not the individuals. And but also, as you mentioned, Julie, they’re retaliating against blue states. 

Rovner: Yeah, yeah. I mean, this is their, sort of, This is how we’re going to address healthcare affordability, says this administration, and the poll suggests that maybe that’s not a really good way to go about it. All right, that is this week’s news. Now we’ll play my interview with Sen. Bill Cassidy, and then we will come back with our extra credits. 

I am so pleased to welcome Louisiana Republican Sen. Bill Cassidy to “How Would You Fix It?” Sen. Cassidy is a physician and the chairman of the Senate Health, Education, Labor, and Pensions Committee, which has been churning out health legislation of late. Sen. Cassidy, thanks for taking the time to join us. 

Bill Cassidy: Julie, thank you for having me. 

Rovner: I mostly want to talk about your “MVP” health agenda, but first, just a little bit of current events. President Trump has announced a 100% tariff on imported generic drugs starting in two years, and a 200% tariff after that, all in an effort to move that drugmaking back to the U.S. Do you think that’s a good idea, and will it work? 

Cassidy: Is it a good idea? It depends on whether or not it increases our national security and whether or not it actually ultimately ends up giving patients the price of generic drugs at an equal price, and thirdly, whether or not we avoid any contamination or other products like that. The national security might be something worth paying for. We know, God forbid, [if] we ever get in a hot war with China, the question is, can we bring generic drugs, which are principally made across the Pacific, across the Pacific to help us. So there is that national security aspect of it. That’s No. 1. No. 2, though, I’ve gone to a Dr. Reddy’s, which is owned out of India, used to have a generic site in Shreveport, and the cost basis of producing drugs in the United States was just significantly more than in India. And so it may be that consumers pay a little bit more. I’m hoping there’s an economic analysis showing if the cost-benefit ratio is adequate. I will finally say that I do think it’s important that we have some of our drugs produced here. I’m told that drugs like penicillin and cephalosporins are now almost all made in China. Again, going back to: Do we want China to have that sort of leverage for these drugs to be produced principally, maybe 99%, over there, and we don’t have access to them if tension rises between the two countries? I do think that is something worth investing in. 

Rovner: So also this week, U.S. measles cases have now topped last year’s total and are at the highest level in 35 years. You made it clear, even during HHS Secretary RFK Jr.’s confirmation hearing, that you see the risks of weakening federal policy and public confidence in vaccines. Do you think that Kennedy ever intended to keep the promises that he made to you around ACIP [the Advisory Committee on Immunization Practices] and the vaccine schedule? And what would you say to doctors who now place some blame on you for creating an environment where anti-vaccine sentiment is echoed by the nation’s health department? 

Cassidy: Well, first, I can’t get inside somebody’s mind. If they agree to guardrails and disregard those guardrails, you can judge me. But you may decide my judgment wasn’t very good, but I don’t think you can say I acted in bad faith. Why? Because I’m pretty sure that RFK was going to have the president’s ear whether he was in office or not. In office, we had guardrails that I had the expectation would be kept. Out of office, but with influence, there’d be no guardrails. So sometimes in politics and in life, it’s not a black-or-white choice. It’s not like, oh my gosh, this is the pure driven way, and this is, you know, darkness and whatever. No, it is something trying to decide what is the best with countervailing influences. I think doctors particularly know that, because it’s often the cases we care for patients that you have to come to something that you don’t quite yet know what the next step is, and you’re working towards it. Perhaps they’ll have more sympathy if they put it in light of their own medical practice. 

Rovner: So, are you going to try to have him back and keep pushing him to keep the promises that he made? 

Cassidy: I have made a request that he come back before the committee. 

Rovner: But we haven’t heard back yet? 

Cassidy: Not had a confirmation that he will yet. 

Rovner: Well, onto our bigger topic. You’ve proposed something you’re calling the Money and Value for Patients Agenda, or MVP, as a replacement, I guess, for the Affordable Care Act. How would that work? 

Cassidy: It’s not a replacement for the Affordable Care Act. It is only restricted to that which is in the employer-sponsored insurance market. And if we can look at where people are getting subsidies for their health insurance 鈥 you have a sophisticated audience, so I’ll speak this way鈥 we can see that if you’re on Medicaid, you basically get 100% of your healthcare costs paid for. If you’re on the exchanges and less than 250% of federal poverty, it’s like 85%-plus. And then after that, it’s your marginal tax rate. If you’re at the 15% marginal tax rate, you pay your premium on a pretax basis, which means you get a 15% break. If you’re at the 37% marginal tax rate, much wealthier, you get a 37% pretax break on the money you paid for your premium. So the people who are middle-income on employer-sponsored insurance are the ones who are getting the least assistance from the tax code or the federal government to purchase their health insurance. What?! The people who are trying to do it the best 鈥 they’re working; they’re not on Medicaid. Some people on Medicaid work, but many don’t. The people who are working are the ones who get the least assistance. So, what can you do about that? What I would do in my MVP plan is give an advanceable tax credit to those on employer-sponsored insurance below a certain marginal tax rate, and if you’re below some percent, you would get it. 

Rovner: So very rich people wouldn’t get this. 

Cassidy: No, it’d be like less than 22% marginal tax rate. And so those are the people who need the help. Let’s focus where people need help. And that’s negotiable, but that’s just an example. Under my calculations, a family of four could get up to $2,000. Now, why is that important? Many families, maybe most, will not have more than $2,000 of out-of-pocket expense in a given year. Now, one year they may 鈥 the wife’s pregnant, or the son, you know, gets in a car wreck 鈥 but most years they’ll have less than $2,000. So that would potentially cover all of their out-of-pocket, particularly if you couple it with the price transparency legislation we’ll discuss in a second. And because the family now has $2,000 to cover their out-of-pocket, they can choose a policy with a higher deductible, which means a lower premium. OK, so if currently the average deductible for a small-business plan is about $3,000, you give them $2,000, they’re going to choose a $5,000 deductible, and that will lower their premium substantially. I like to speak, Julie, of the cost of being insured, which is not just your premiums, but your copays and your deductible. We’re given $2,000 for that copay and that deductible, which allows you to take a lower-cost premium, and you put it all together. And my favorite economist, ChatGPT, says that you could potentially save $5,000-$6,000 per year, per family, and that makes a significant, meaningful difference in their ability to afford life. 

Rovner: So, is this in addition to employer coverage, or would this be instead of employer coverage? 

Cassidy: No, this would be in addition to employer coverage. Right now, we see that small businesses are dropping coverage, and so this would, obviously, if the employee is choosing a cheaper plan because the plan they choose is a higher deductible, then it becomes less expensive for the employer. And so they can better afford to continue to offer. So this is a way to help that small business as well. I’ve talked to a small-business owner back home, several small-business owners. It’s becoming very difficult for them to give salary increases and/or hire more people if they continue to provide health insurance. So, if we’re able to take a little bit of that burden off of the employer to give an adequate insurance policy, then hopefully they can increase wages and/or hire more people and expand their business. So it’s a benefit not just for the family, but also for their employer. And frankly, the federal government ends up earning more tax dollars because, not getting too complicated, but the less money you’re spending on a pretax basis, the more money going into your post-tax paycheck, the more taxes you pay for payroll tax, etc. 

Rovner: I’m thinking of private equity and some of the gaming of one of the laws that you were instrumental in getting passed to prevent surprise medical bills. How do you try to protect consumers from people in healthcare who are literally just in it for the profits? 

Cassidy: Why not price transparency? If you don’t know the price of something, you can’t get a better deal. And that’s whether you’re the patient or whether you’re the business. And so the initial step to make sure that people are getting their best deal is price transparency. And, by the way, the wonderful thing in the last year or so, I’ve been exposed to people doing wonderful work, and people are developing apps on the phone, and you could say, “Hey Siri, where’s the urgent care center near me? What is their price schedule for a routine earache?” OK, I’m going to go to this one near me because it’s $50, not $150. So I go there, and then I come out with a prescription. “Hey Siri, where’s the cheapest place to get this prescription for amoxicillin, 500 milligrams BID?” Siri tells you, or the app tells you, not Siri, but the app. And these are, like, being developed now. I mean, this is not 鈥 no, this is now. And so if you couple money in the pocket with price transparency, giving the individual the ability to determine where to go to get the best price 鈥 and we have some other provisions in there that protect the patient, a lot of provisions 鈥 then you are going to bring value to the patient. That’s part of the solution in the employer-sponsored insurance market. 

Rovner: Sen. Bill Cassidy, thank you very much. 

Cassidy: Thank you, Julie. 

Rovner: OK, we’re back. It’s time for our extra-credit segment. That’s where we each recognize a story we read this week we think you should read, too. Don’t worry if you miss it. We will post the links in our show notes on your phone or other mobile device. Alice, why don’t you go first this week? 

Ollstein: Yeah, I have a story from our friends over at Roll Call. This is “,” by Ariel Cohen. And this is about a recent decision that, like so many things these days, flies under the radar because there’s so much going on at once. And just in the category of grant cuts, there’s so much going on. So this is about the sudden slashing of a bunch of HIV prevention grants to community organizations. They’re now saying they’re going to redirect the same funding to state and local health departments, and those state and local health departments can, if they want, then pass it on to the community organizations. But 1) that’s, you know, more bureaucracy, more headaches. But also, what this article smartly points out is that that then makes the community organizations no longer eligible for 340B, which was helping them buy all of this medication much more cheaply. And so losing that designation, losing those grants, is a really big deal for these groups that are trying to afford doses of expensive medication like PrEP to distribute to communities. 

Rovner: Yeah, again, some of these things that sort of look small end up with far-reaching consequences. Joanne. 

Kenen: This was the first extra credit that actually made me invent a word, which was “yikes-maxing”! You know, like, it was so wild. It’s from Stat by Adam Feuerstein. I probably have that wrong. 

Rovner: Feuerstein. 

Kenen: OK, and the headline is “.” So, for 20 years, this guy 鈥 he was a doctor. He was convicted of one assault. He was pending trial on another sexual assault allegation, and he disappeared right before his trial. He left notes that he was going overseas, transferred property to his kids, etc. Well, he did not go overseas to live as a fugitive. He was right here posing as a cancer expert, and he worked for two biotech companies. And he purported to have expertise in all this very advanced, cutting-edge drug development for cancer, which was not his actual background. So, like, how did he get these jobs? Why wasn’t he vetted better? He was finally tracked down on a yacht called the Silver Lining, and, in fact, the alleged assault, because one of them wasn’t ever went to trial, was on yacht. Yachts were his, apparently, his favorite locale for his alleged assaults. So he has been arrested, but it’s not just like this guy needs to go to trial, but, like, how did these companies 鈥 did they even look at his LinkedIn? I mean, he was using a fake name. How did this happen? It’s a huge scandal, and it’s also a great yarn. 

Rovner: I can’t wait to see the movie that somebody’s going to make out of this. Margot. 

Sanger-Katz: I wanted to recommend an article from Andrea Hsu on All Things Considered and NPR. “.” And this is a story about a growing number of men who are entering the nursing profession, and, in particular, a look at the University of Alabama in Birmingham that is really trying to recruit men into the profession. And you know, I feel like caregiving professions have traditionally been kind of a female domain, but I think there’s a new openness by men to enter these careers, which I think can be very fulfilling. They’re very secure. They’re relatively high-paying. My colleague Claire Cain Miller did a story in the Pacific Northwest almost 10 years ago, I think, where she interviewed a number of male nurses about their work and had these beautiful portraits shot of them, and it just is a piece that has stayed with me for a long time. Just thinking about these men in these caregiving roles and why some of our, like, more conventional ideas of masculinity prevent men from entering these professions that I think can be really great careers and really fulfilling for them. So I just thought this new story was really good. I was interested in what this university is doing to recruit men, and I think the idea of male nurses and a nursing profession that is more gender-diverse is really interesting. 

Rovner: And in 2026, unlikely to be taken over by AI. It’s one of those rare career paths. It’s probably still going to be around for a while. All right, my extra credit this week is from The New York Times. It’s called “.” It’s by Arijeta Lajka, Isabelle Niu, Mark Boyer, James Surdam, and Dan T. Peters. It’s a video, and it shows how AI-generated doctors, Eastern medicine health practitioners, and wellness influencers are all over social media, making often dangerous health claims to sell all manner of questionable supplements. The money line from the piece, quote: “Ads like this would be illegal on U.S. television, but on the internet they face little enforcement.” Apparently, some of the big social media companies are trying to find and extinguish ads that make misleading claims or are not noted to be AI. But for now, it is still very much buyer and watcher beware.  

All right, that is this week’s show. Thanks to our editor, Emmarie Huetteman, and our producer-engineer, Francis Ying. We also had production help this week from Taylor Cook. A reminder: What the Health? is now available on WAMU platforms, the NPR app, and wherever you get your podcasts 鈥 as well as, of course, kffhealthnews.org. Also, as always, you can email us your comments or questions. We’re at whatthehealth@kff.org. Or you can still find me on X , and on Bluesky . Where do you guys hang these days? Margot. 

Sanger-Katz: I’m on social media , and you can reach me on Signal at sangerkatz.01. 

Rovner: Joanne. 

Kenen: I’m mostly on  and  @JoanneKenen. 

Rovner: Alice. 

Ollstein:  on X, and  on Bluesky. 

Rovner: We’ll be back in your feed next week. Until then, be healthy. 

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A Deloitte-Run System Denied Medicaid Benefits for Michigan鈥檚 Disabled. Now Trump鈥檚 Law Piles On. /health-industry/deloitte-medicaid-eligibility-system-denials-michigan-trump-policy-piles-on/ Tue, 21 Jul 2026 09:00:00 +0000 /?p=2258559 Marie Noon takes eight medications a day. One keeps her heart rate from spiking to avoid a stroke. One prevents debilitating headaches. Another ensures she doesn’t retain excess fluid.

More than a decade ago, Noon said, she was diagnosed with adult-onset Still’s disease, a rare type of inflammatory arthritis that can cause rashes, debilitating pain, and fevers. The disease upended her life.

She had been living a typical suburban life in Michigan, shuttling her two kids to activities like cheerleading, choir practice, and track. She was active in the PTA. She managed a bank.

She went from that to crawling to the bathroom because she was in so much pain, “just crying all day long” from being so sick.

Noon, who is disabled, said she couldn’t work for eight years 鈥 a time marked by hospital stays that stretched for weeks.

“I honestly thought I was going to die,” Noon said.

So it was a shock when Michigan denied her application for Medicaid benefits last year after she lost private insurance. Worse yet, it came down to an IT error, according to an attorney who helped Noon overturn the denial.

“I can’t afford my medical care. I have to have insurance,” said Noon, who has returned to working.

Deloitte, a multibillion-dollar global consulting firm, has operated Michigan’s Medicaid eligibility system under contracts worth roughly $768 million since 2006, according to contracts reviewed by 吃瓜不打烊. Nationwide, Deloitte dominates this important slice of government business: At least 25 states have awarded the company contracts to build or run computer systems that control access to safety net benefits such as Medicaid.

Michigan’s system has incorrectly directed people with disabilities into skimpier benefits that cover limited care or has denied coverage completely, a 吃瓜不打烊 investigation found. Similar problems were at the center of a class-action suit in Tennessee, , and have occurred in Texas, according to interviews and state records.

The 吃瓜不打烊 investigations are based on statements from state officials, allegations and declarations in court documents, emails obtained through public records requests, state government information provided to Medicaid enrollees and applicants, and interviews with attorneys and patients or their caregivers.

In an emailed statement, Deloitte spokesperson Karen Walsh said it found “no system anomalies causing routine denials of Medicaid for people with disabilities.”

“There are many reasons why someone may no longer be eligible for a benefit they once received or believe they deserve,” Walsh said. “All of the eligibility systems we support are owned by the states and built to their unique specifications. We will continue to work at the direction of our state clients.”

Lynn Sutfin, a spokesperson for Michigan’s Department of Health and Human Services, said it “is not aware of any widespread or systemic issues” within Bridges, Michigan’s eligibility system for Medicaid, SNAP, and other benefits, “related to disability鈥慴ased eligibility pathways.” 

Since 2006, Deloitte’s contracts with the state have said the company is responsible for development, implementation, maintenance, operations, and enhancements to the Michigan system.

Computer system problems foreshadow trouble as states prepare to roll out the most significant and complicated changes to their Medicaid programs in years. Those changes, dictated by President Donald Trump’s landmark One Big Beautiful Bill Act, have states rushing to update their Medicaid computer systems.

Nationwide, on Medicaid have a disability, according to KFF.

“When these administrative systems get overloaded, everyone gets impacted,” said Pamela Herd, a University of Michigan professor who researches bureaucratic obstacles to accessing government benefits. “The systems are going to be really, really strained.” 

In Michigan, Noon was eligible for Medicaid through a program that provides coverage to disabled adults who work. But the state’s computer system didn’t register that she is disabled and said she earned too much to qualify, according to documents reviewed by 吃瓜不打烊 and interviews with Noon and Anastassia Kolosova, a disability rights attorney who helped her.

Without Medicaid coverage, Noon paid hundreds of dollars out-of-pocket for prescriptions, after scrounging for discount coupons. She takes some of the drugs twice a day.

Without them, “I’m toast,” she said. It was stressful “not knowing if my medicine’s going to be $50 or $500 this month, because it changes constantly.”

Noon said her doctor agreed to fewer visits to avoid medical bills.

“It was kind of a nightmare,” Noon said.

鈥業 Just Wanted To Give Up’

Medicaid, a safety net health program jointly run by the federal government and states, people with low incomes or disabilities. State governments rely on companies like Deloitte to design and operate computer systems that assess whether people qualify for Medicaid or food aid through the Supplemental Nutrition Assistance Program, commonly known as food stamps.

That technology has a history of errors that deprive eligible people of benefits, earlier 吃瓜不打烊 investigations have shown. As reported previously, Kenneth Smith, a Deloitte executive who leads its national human services division, said Medicaid eligibility technology is state-owned and agencies “direct their operation” and “make decisions about the policies and processes that they implement.”

“They’re not Deloitte systems,” he said, noting Deloitte is one player among many who together administer Medicaid benefits.

States are under immense pressure to update their eligibility systems on a tight schedule to adhere to requirements in the Republicans’ sweeping 2025 tax and spending law. Companies including Deloitte, Accenture, and Optum are being paid millions in taxpayer funds to make the changes, which are projected to strip Medicaid from roughly 7.5 million people and SNAP from 2.4 million people by 2034.

Many coverage restrictions in the new federal law don’t apply to seniors, children, or people who are disabled, such as Noon. Nonetheless, the law’s demands on state agencies and the computer systems they oversee will disrupt benefits, advocates for Medicaid enrollees and other healthcare experts said in interviews.

The same systems also need to correctly classify why someone is eligible for Medicaid 鈥 and therefore which rules and restrictions apply.

The law’s SNAP restrictions began to take effect in 2025, and major Medicaid provisions begin later this year, generally after the midterm elections.

Kolosova is a supervising attorney with Disability Rights Michigan, a legal advocacy organization for people with disabilities. She said she has been unable to get a meeting with Michigan officials to understand the underlying problem that deprived Noon of health coverage.

A woman stands in a stairwell. She wears a shirt that says "Disability Rights Michigan"
Anastassia Kolosova, a supervising attorney with Disability Rights Michigan, helped Noon navigate the complicated process to obtain safety net health insurance through Medicaid. Kolosova says she has seen multiple wrongful coverage denials and fears problems will soon get worse because of changes required by federal law. (Kate Wells/吃瓜不打烊)

State records show Deloitte has held contracts for at least 14 years for Bridges, Michigan’s eligibility system for Medicaid, SNAP, and other benefits. In its attempts to secure more business, the company often cites its nationwide footprint in Medicaid operations.

“Deloitte understands Bridges,” and its history in Michigan makes the company “the ideal vendor,” the firm said in its . Given Deloitte’s work on similar systems in 31 other states, , “Michigan benefits from our technical expertise drawn from across the nation.”

But advocates who work with people with disabilities say Michigan’s computer system has failed to recognize when certain adults should receive Medicaid benefits.

Problems aren’t unique to the Great Lakes State. Medicaid beneficiaries who brought a against Tennessee in 2020 said the state’s Deloitte-built system “does not reliably test for eligibility” for several categories of people with disabilities. The firm’s is worth $1.12 billion over a decade.

A federal judge in 2024 , ruling that Tennessee violated federal law and the U.S. Constitution. The lawsuit does not name Deloitte as a defendant.

In Michigan, a from the state’s Office of the Auditor General said government agencies “did not provide effective project administration” and failed to ensure that the state could “independently maintain and operate Bridges” because “the contractor did not transfer knowledge and skills” to state officials, according to the audit.

The auditor’s report said that, as a result, Deloitte’s original contract 鈥 valued at roughly $70 million 鈥 ballooned by $50 million over the initial cost, a 71% increase. State records show Michigan would go on to add millions more, bumping the cost of Deloitte’s initial contract to $124.1 million.

The audit said maintaining the contract would result “in significant additional costs.”

Sutfin said that “the state is now fully capable of operating and maintaining Bridges independently.”

Deloitte’s in Michigan 鈥 worth $197.4 million 鈥 is set to expire in 2030.

Noon applied for Medicaid in August, she and Kolosova said. In September, the Michigan Department of Health and Human Services sent a notice denying her coverage, citing incorrect income information and stating she wasn’t disabled, according to Kolosova and state documents reviewed by 吃瓜不打烊.

Noon said that when she called the state for help, state workers “didn’t know anything about” the Medicaid program she had applied to, Freedom to Work.

“I can’t tell you how many times I just wanted to give up,” she said.

For some people with disabilities, Medicaid is supposed to count only half their earnings when assessing whether they should receive benefits. That didn’t happen. Kolosova said she thinks Michigan’s eligibility system didn’t identify Noon as disabled, even though the state “already had all the information they needed” to show she was.

By failing to recognize her disability, the state used the wrong income formula and said Noon earned too much to qualify for Medicaid, she added. Deloitte and Michigan declined to respond to a detailed list of questions about Noon’s experience.

Kolosova said Disability Rights Michigan has seen a growing number of calls from people about Freedom to Work benefit denials. “Maybe two or three a month,” she said.

“There’s something wrong with the system if they’re relying on individual caseworkers to catch this,” Kolosova said. “The system needs to work.”

Marie Noon holds her dog as they stand by a window.
Noon at home with her dog, Ziggy. Despite being eligible for Medicaid, she was denied coverage in 2025 because of an error with the state’s benefits system. It took months of pushback before the state reversed its mistake. Even as a “tech-savvy” former bank manager, she says, she wanted to give up several times along the way. (Kate Wells/吃瓜不打烊)

Enrolled in the Wrong Coverage

Noon’s experience isn’t the first time in recent years that people with disabilities have been denied benefits by Deloitte-run eligibility systems.

In Texas in 2023, Lilly Livingston, who has Down syndrome and is now 22, was abruptly cut off from Medicaid benefits, according to Livingston’s mother, Marie. She has undergone numerous surgeries to reconstruct her severely misaligned jaw, which caused sleep apnea and impaired her speech and chewing ability. She relied on an array of Medicaid services, including speech and occupational therapy.

When Livingston lost benefits, she was wrongly enrolled in Healthy Texas Women, a limited program that provides breast and cervical cancer screenings and family planning services.

“Trying to fix that was a nightmare,” Marie Livingston said.

Terry Anstee, an attorney with Disability Rights Texas, intervened.

In a September 2023 email with the subject line “URGENT,” Anstee begged a Texas Medicaid eligibility worker for help.

Some unknown “error” had occurred and stripped Livingston of her benefits, Anstee said in an email he sent to a state Medicaid staffer. “Lilly has had 2 major surgeries, and her recovery is contingent on Medicaid.”

It was clear that Livingston qualified for Medicaid through multiple paths, Anstee said: “It never made any sense.”

Deloitte declined to respond to a detailed list of questions about Livingston’s case. Jennifer Ruffcorn, a spokesperson for Texas Health and Human Services, confirmed that Livingston was erroneously enrolled in Healthy Texas Women. However, Ruffcorn said, Livingston did not experience a lapse in Medicaid coverage in 2023.

Anstee disputed the state’s characterization: “A glance in the system by a Texas HHS press officer or other staff 3 years after the fact may not tell the full story or show the issues that Ms. Livingston endured in August and September 2023. Ms. Livingston experienced lapses in coverage.”

The problem Livingston encountered in Texas was also reported in Michigan.

In 2024, mental health services advocates in Michigan raised red flags about a similar error: People with disabilities were being enrolled in a limited Medicaid program covering sexual health and family planning services. Plan First covers only services and treatment for sexually transmitted infections. It doesn’t provide the comprehensive coverage that people with disabilities require.

But some enrollees were “being automatically enrolled in Plan First,” Malcolm Kletke, a lobbyist representing the Community Mental Health Association of Michigan and other mental health providers, wrote to a Michigan health official, according to emails obtained by 吃瓜不打烊 through a public records request.

These enrollees had “long received Medicaid due to their disability,” and getting enrolled in the wrong plan meant losing access to “services essential to their recovery and quality of life,” Kletke wrote in September 2024 to Amy Epkey, a senior deputy director of the Michigan Department of Health and Human Services.

In fact, the state’s own records show that Medicaid enrollment for those with disabilities did decline.

Over roughly four years, enrollment in the Medicaid category that includes people with disabilities , according to the Michigan House Fiscal Agency, which provides nonpartisan analysis to lawmakers. The drop was unusual given people generally leave the program because of death or having recovered from a temporary disability, and it’s unlikely those numbers would balloon, said Robert Sheehan, who was the mental health association’s CEO at the time.

Sutfin said the state examined the decline in enrollment and found “several contributing factors, including post鈥慶ovid renewal patterns, changes in beneficiary circumstances and movement to other coverage categories.”

After inquiries from 吃瓜不打烊, the Michigan health department acknowledged in April that it had made changes to “address concerns raised by advocates.”

Michigan’s computer system now prevents approval of Plan First benefits until all other coverage options are evaluated, Sutfin told 吃瓜不打烊. Sutfin said the changes were implemented but “not to correct system errors.”

Sutfin said the state submitted a change request to Deloitte to address this problem. The fix was implemented in January 2025.

Until presented with Kletke’s email, the state had denied there were problems related to Plan First.

Even after the state addressed that issue, other problems persisted.

Noon’s coverage denial notice arrived in September. She fought with the state for months to reverse its decision, “paying cash for all of the medicines through these appeals over and over and over again.”

It was only in January that she was approved.

“I literally cried,” Noon said. “It was a really big deal.”

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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Doctors 鈥楥ringe鈥 at Possibility of Documenting Which Medicaid Enrollees Too Sick To Work /medicaid/medicaid-work-requirements-medical-frailty-documentation-doctors/ Mon, 20 Jul 2026 09:00:00 +0000 /?p=2258203 Alice Thornton has spent more than two decades treating people living with HIV in Lexington, Kentucky.

Her team tends to “cringe” anytime they hear about patients having to fill out lots of paperwork, like when applying for Social Security Disability payments, because it can be a difficult, burdensome process.

Thornton tries to support her patients, she said, but understands the limits of her training.

“A lot of times the forms are so complex that I don’t really know what’s the true definition of what this form is asking me,” she said. “We refer them to a disability provider.”

Doctors including Thornton worry they’ll see more of those kinds of requests because of coming changes to Medicaid, the government health insurance program for people with low incomes or disabilities. Starting Jan. 1 in most of the country, some enrollees 鈥 mainly adults without dependents 鈥 must prove they’re working or performing other qualifying activities 80 hours a month.

issued in June say people can obtain an exemption if they’re “medically frail,” or too sick or disabled to work, which may require them to submit documentation from a medical professional. That standard prompted a lawsuit at the end of June from dozens of mostly Democratic-led states and has Thornton worried it could force her and her staff to assess things like how much a patient can lift or how far they can walk.

“If I’m asked, 鈥業s this person medically frail?’ What does that even mean?” Thornton said. “I don’t know, and I’ve been doing this for 25 years.”

Last year’s GOP tax-and-spending law known as the One Big Beautiful Bill Act established the work rule, which will affect an estimated when more states start enforcing it. The mandate is expected to cause a larger increase in the number of people without health insurance than any other part of the law, a health information nonprofit that includes 吃瓜不打烊.

Doctors say they aren’t trained to accurately assess whether someone’s health keeps them from working. Many don’t have time to handle another administrative task that takes them away from patient care. And being involved in whether someone gains access to a public benefit undermines the doctor-patient relationship, several doctor groups and physicians said.

“When you introduce unnecessary, non-evidence-based, confusing, and bureaucratic policies like this into clinical care, it just raises the level of moral distress for providers,” said Christopher Chen, a senior healthcare adviser at the consulting firm Manatt.

The Centers for Medicare & Medicaid Services declined to respond on the record about doctors’ concerns. But the agency confirmed that enrollees may need to get documentation from a clinician to prove they’re too sick to work and said states would make final determinations.

The Trump administration has previously said states should use available data sources 鈥 such as medical claims and payment data 鈥 before making patients submit proof of medical frailty from a provider.

“Documentation should be relatively easy to provide,” Mehmet Oz, the CMS administrator, said during a June 1 press call.

But deciding whether a patient is too sick to work is a subjective, high-stakes decision, said Chen, who also practices as a hospitalist at Valley Medical Center in Renton, Washington.

“We’re trained to take care of people,” he said. “We’re trained to learn about someone’s symptoms, make diagnoses, treat them. We’re not trained to make these kinds of work determinations.”

When they apply and every six months after, Medicaid enrollees subject to the rule will have to prove that they’re performing the minimum monthly hours of qualifying activities 鈥 or will likely have to prove as frequently that they qualify for an exemption.

If states can’t find sufficient evidence that someone is too sick to work, that person will be able to self-attest to it under penalty of perjury 鈥 but only for a short time. States may take someone’s word that they’re medically frail twice in 2027 and only once in 2028.

Last month, 25 mostly Democratic-led states over the final regulations, arguing the medical frailty standard would be too hard for enrollees to meet 鈥 and for states to assess.

The standard, they argue, requires state Medicaid agencies to “take on the role of occupational medicine experts” or adds that burden to physicians who are not necessarily trained in occupational medicine.

CMS declined to comment on the litigation.

The Trump administration has crusaded against fraud in government health programs including Medicaid. It recently 鈥 including medical professionals 鈥 over more than $6.5 billion in alleged fraud schemes.

CMS has said it will keep a close watch on how states administer the work requirements and may take corrective action if states step out of line.

That has doctors concerned about the potential repercussions if they incorrectly assess whether someone is too sick to work, as farfetched as those worries might be, said Rahul Vanjani, a primary care and addiction medicine physician and researcher at Brown University.

“We, using our imaginations, wonder if someone is auditing these forms in the background and if they’re going to reach out to the licensing board.”

The country is short of primary care providers, and it could be hard for people seeking an exemption to find a clinician to help them document that they’re too sick to work, doctors said.

It will be even more challenging for someone without insurance, said Jennifer Wagner, who researches Medicaid eligibility at the left-leaning Center on Budget and Policy Priorities.

“How could an applicant who doesn’t have health coverage get a doctor’s note?” she asked.

The American Medical Association, the nation’s largest professional association of doctors and medical students, lobbied federal officials to change the standard for documenting medical frailty in the days before the final regulations were made public.

In May, the AMA sent to Oz, the CMS administrator, arguing that forcing doctors to attest to their patients’ ability to work wouldn’t just be an administrative headache but would affect the way they interact with those in their care.

In a statement, the association’s president, Willie Underwood III, said the work rule “transforms the clinical encounter into an eligibility gatekeeping process.”

“Patients will likely sense that shift,” he said. “And if they begin to suspect that what they share with their physician could affect their coverage, the conditions for open and honest communication will start to break down.”

Doctors have a fixed amount of time to spend with patients and would rather focus on treating medical conditions than filling out forms, especially ones that put them in a position to “represent the state,” said John Ayanian, an internal medicine physician and researcher at the University of Michigan.

“Their first obligation is to serve the best interest of their patients,” Ayanian said.

Lauren Davis, an attorney with Community Legal Services of Philadelphia, helps clients navigate other public benefit programs, such as the Supplemental Nutrition Assistance Program, which has a similar work rule. Enrollees can get an exemption from it if they’re too sick to work.

She recalled a client with a cognitive condition that affected her memory. The client’s doctor wasn’t comfortable filling out an exemption form without seeing her in person, but she kept forgetting to make an appointment and eventually gave up, said Davis, who worries Medicaid enrollees could face similar barriers to getting exemptions.

“This person is eligible,” Davis said. “The reason that they’re not able to get what they need to show that they’re eligible is because of their medical condition.”

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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States Start Their Medicaid Cuts /podcast/what-the-health-455-medicaid-cuts-state-budgets-confirmation-hearings-july-16-2026/ Thu, 16 Jul 2026 18:40:00 +0000 /?p=2260181&post_type=podcast&preview_id=2260181 The Host
Julie Rovner photo
Julie Rovner 吃瓜不打烊 Read Julie's stories. Julie Rovner is chief Washington correspondent and host of 吃瓜不打烊’ weekly health policy news podcast, "What the Health?" A noted expert on health policy issues, Julie is the author of the critically praised reference book "Health Care Politics and Policy A to Z," now in its third edition.

When Republicans passed their big budget bill in 2025, they scheduled many of the Medicaid reductions to take effect in 2027, after the 2026 midterm elections. But in anticipation of getting less money from Washington come January, many states are already cutting their Medicaid programs, making the issue more relevant for voters in November.

This week’s panelists are Julie Rovner of 吃瓜不打烊, Anna Edney of Bloomberg News, Alice Miranda Ollstein of Politico, and Sandhya Raman of Bloomberg Law.

Panelists

Anna Edney photo
Anna Edney Bloomberg News
Alice Miranda Ollstein photo
Alice Miranda Ollstein Politico
Sandhya Raman photo
Sandhya Raman Bloomberg Law

Among the takeaways from this week’s episode:

  • Congress has no clear path to passing its annual spending bills, with the issue of Medicaid funding for Planned Parenthood again threatening to gum up the works. Meanwhile, senators this week screened President Donald Trump’s newest health nominees: Erica Schwartz to lead the Centers for Disease Control and Prevention and Sean Kaufman to lead the Administration for Strategic Preparedness and Response. But Schwartz undermined some senators’ confidence by claiming ignorance about a number of Trump administration funding cuts, and Kaufman faced fiery questions over a deleted social media post about the hepatitis B vaccine.
  • The confirmation hearing for Todd Blanche as attorney general also trod into health territory, with Blanche saying he would review potentially using the 19th-century Comstock Act to block distribution of medication abortion drugs by mail. Such a move could block not only mifepristone but also misoprostol, which is the second abortion medication in the two-drug regimen 鈥 and is also used for non-abortion purposes. Trump promised on the campaign trail not to invoke the Comstock Act.
  • In politics, Maine Democrats are cautiously eying the abortion stances of a replacement Senate candidate, hoping to pin the rollback of abortion rights on Sen. Susan Collins, the Republican incumbent. And Sen. Ron Wyden (D-Ore.) is calling for an investigation into whether Health and Human Services Secretary Robert F. Kennedy Jr. violated a federal law aimed at preventing electioneering by officials when he made recent calls to persuade some candidates to drop out of congressional races.
  • And the gastrointestinal infection cyclosporiasis is sickening more Americans and drawing attention to the Trump administration’s actions undermining food safety surveillance programs. The cyclospora parasite was once subject to mandatory reporting but has since been made voluntary, challenging efforts to track the source and contain the outbreak.

Also this week, Rovner interviews Elizabeth Mitchell of the Purchaser Business Group on Health as part of the “How Would You Fix It?” series.

Plus, for “extra credit” the panelists this week suggest health policy stories they read (or wrote) that they think you should read, too:

Julie Rovner: Mississippi Today’s “,” by Sophia Paffenroth and Joanne Kenen.

Anna Edney: Bloomberg News’ “,” by Anna Edney.

Alice Miranda Ollstein: Politico’s “,” by Amanda Chu and Robert King.

Sandhya Raman: Bloomberg Law’s “,” by Nyah Phengsitthy and Skye Witley.

Also mentioned in this week’s podcast:

  • Stat’s “,” by O. Rose Broderick.
  • NPR’s “,” by Selina Simmons-Duffin.
  • Stat’s “” by Anil Oza and J. Emory Parker.
  • Politico’s “,” by Alice Miranda Ollstein.
Click to open the transcript Transcript: States Start Their Medicaid Cuts

[Editor’s note: This transcript was generated using transcription software. It has been edited for style and clarity.] 

Julie Rovner: Hello, from 吃瓜不打烊 and WAMU Public Radio in Washington, D.C. Welcome to What the Health? I’m Julie Rovner, chief Washington correspondent for 吃瓜不打烊. And, as always, I’m joined by some of the best and smartest health reporters covering Washington. We’re taping this week on Thursday, July 16, at 10 a.m. As always, news happens fast, and things might have changed by the time you hear this. So here we go. Today we are joined via video conference by Alice Miranda Ollstein of Politico. 

Alice Miranda Ollstein: Hello. 

Rovner: Anna Edney of Bloomberg News. 

Anna Edney: Hi, everyone. 

Rovner: And Sandhya Raman of Bloomberg Law. 

Sandhya Raman: Hello, everyone. 

Rovner: Later in this episode, we’ll have the latest in our “How Would You Fix It?” series, this week with Elizabeth Mitchell of the Purchaser Business Group on Health, which represents employers and institutional buyers of health insurance and health services. But first, this week’s news. 

So, Congress is back from its July Fourth break with lots of changes, but still not a ton of forward progress on its legislative agenda. Sen. Mitch McConnell, who was hospitalized in June for what his office now says was a fall followed by a case of pneumonia, is still out. And close [President Donald] Trump ally South Carolina Republican Sen. Lindsey Graham died suddenly over the weekend. He’s already been replaced temporarily by his sister, Darline Graham Nordone, who presumably will be a reliable vote for Trump priorities, but probably not the dealmaker and mover-and-shaker her brother had been. In the House, members approved a surprisingly divisive bill to make daylight saving time permanent. But there doesn’t look to be a very clear legislative path for things like, oh, the annual spending bills that need to be done by Sept. 30? And yet another party-line Republican budget bill that might or might not be partly paid for by another push on healthcare fraud. What are you folks hearing about the major things that Congress has to do before the end of the fiscal year?  

Ollstein: Well, the thing that amused me the most that I saw was that leadership in the House, who are facing the same struggles over and over, herding the cats and getting enough Republicans to stay in line to pass even these party-line, you know, slim-majority bills, they’re trying the same tactic they tried with the last reconciliation bill, which is Hey, I know you’re disappointed that all of the things you wanted in this bill are not included, but don’t worry; there’ll be another one after it, so just vote for this one. And so they said that when they were working on “Reconciliation 2.0,” they said, Don’t worry; all the things you want, including Planned Parenthood’s Medicaid funding, that’ll be in 3.0. And now that we have 3.0, and it’s not included, and a bunch of other things they want are not included, they’re saying, Don’t worry; we’ll put it in 4.0. Now, there’s a lot of skepticism that even 3.0 can get done, so 4.0 seems like a wild fantasy at this point. 

Rovner: Yeah, I saw the reference to “Reconciliation 4.0,” and it’s important to remember that there’s only a limited number of budget reconciliation bills you can do. Each budget resolution gives you two or three, I guess, if you include 鈥 you can do a separate one to increase the debt ceiling. But generally, each budget resolution gives you a chance to do a tax reconciliation bill and a spending reconciliation bill. And when they neglect to do the budget resolutions, sometimes they can have a year where they’ll do two budget resolutions for two different fiscal years. But really, that just leaves them four. And I think, I’m not sure there’s a budget resolution that can come for a Reconciliation 4.0. But I guess we’re gonna see. I mean, basically, this really is all about: There’s a segment of the Republicans, particularly in the House, but I think also in the Senate, that want to permanently defund Planned Parenthood from Medicaid, which the Senate parliamentarian has said they can’t do on a permanent basis, and that just sort of continues to string this out, right? 

Ollstein: Right, and there are Republicans in the House that don’t want to take a vote on that in an election year. They worry it could hurt them politically, and then you have the more conservative wing of the party that is very upset that Planned Parenthood recently got its Medicaid funding back, because that law from last year was allowed to expire. So you just have a lot of angst and finger-pointing and upset Republican-on-Republican arguments going on this week, you know. Not to mention, there’s only, I think, seven weeks that they’re in session before the midterms. After the midterms, you could start to have attendance problems, and so people are very, very skeptical that 3.0, but especially some sort of 4.0, could happen. 

Rovner: Yeah, well, so the legislative agenda is kind of stalled. But there were confirmation hearings this week for the administration’s nominees for a couple of top Health and Human Services posts: head of the Centers for Disease Control and Prevention and assistant secretary for preparedness and response. Anything newsworthy from the nominees, Erica Schwartz or Sean Kaufman? Sandhya, you were at this hearing, yes? 

Raman: Yeah. I think this was really interesting to me because, up until yesterday, we had a lot of people kind of pleased with the nomination of Erica Schwartz as, you know, a more kind of mainstream, like, career type health official to be the head of the CDC, and you know even Democrats were pretty pleased with this. And, you know, we even had people that were more MAHA [Make America Healthy Again]-aligned, you know, being more skeptical that she would speak to some of their concerns that they’ve had. And what we had at the hearing was her kind of shifting gears, you know, deflecting on a lot of questions, being asked about various things, being asked about cuts to mRNA research, and saying, Oh, you know, I’m not familiar with that. Saying that she wasn’t familiar with some of the changes related to food safety, while we’re in the cyclosporiasis situation that we are right now. And even issues like the CDC Office [on] Smoking and Health, which she said, you know, smoking prevention was like one of her top priorities when she was working pre-government, and, you know, saying she wasn’t familiar with that office being eliminated. So that was interesting. And even you had the [Health, Education, Labor and Pensions Committee] chairman, Sen. Bill Cassidy, saying, you know, it seems like you’re a little overprepared for this and not answering. But I think the main takeaway was just vaccines. We had so many questions about vaccines from Cassidy, but just throughout the members of the [HELP] committee, trying to kind of garner where they were on it. And again, it was kind of, you know, walking that line to kind of appeal to the widest selection of people as possible. And I don’t think that that was what necessarily everyone was expecting there. For the ASPR [assistant secretary for preparedness and response] nominee, Sean Kaufman, there had been reporting earlier in the week about some of his old LinkedIn posts suggesting some of his comments about, you know, pediatric vaccination and things, and him being a little bit more skeptical. But he came out pretty strongly in favor, saying, I think, vaccines are safe and effective. But I think that there’s still some questions there when you talk to both of the nominees about, you know, whether or not they’d be willing to buck the secretary or the president if push comes to shove on some of these issues. And I think that was what really raised some eyebrows by some of the members on the committee. 

Rovner: I would say Cassidy got pretty exercised about some of the vaccine stuff. Do we know whether that’s going to make him not want to vote for some of these nominees? I mean, that’s pretty much up to him whether these things move forward. And you know, he has since said, after voting for Kennedy, that he was he was 鈥 I don’t think he said that it was a mistake, but he said that Kennedy has not kept the commitments that he made to Cassidy and the committee. So, you know, Cassidy 鈥 who’s a lame duck, has at least another chance to exercise some power here. Is he gonna? 

Raman: He did do some fiery exchanges with both of them on some of the vaccine-related issues, but at no point, I mean, did he come down as strong as that. I mean, at some point, he was saying to Schwartz, the CDC nominee, that, you know, I came in here ready to support you. Like, I want assurances on some of these things. But he didn’t, you know, indicate that he was gonna draw the line there. I mean, I guess we’ll see. I think one thing that did stand out was that he said that his conversations with her, you know, one-on-one, physician-to-physician, before the hearing were a bit different from what he was hearing in the hearing. So it depends, you know, are there more conversations? Does something sway? But it seems like it’s still, you know, heading towards, you know, getting across the finish line. 

Rovner: And to be clear, Erica Schwartz is, you know, she’s a doctor and an epidemiologist, and, you know, ran healthcare, I think, for the Coast Guard. I mean, she’s got a lot of government experience as well. 

Raman: She’s a former deputy surgeon general. She’s, yes, absolutely. 

Rovner: Yeah. Yeah. I mean, she clearly, clearly, on paper, she is more than qualified for this job. It’s just whether Cassidy is angry enough to actually, you know, put his power where his mouth has been. 

Well, there was some health-related news out of the hearing for Todd Blanche, the acting attorney general nominated to take the job permanently. Under questioning from several anti-abortion Republican senators, Blanche rather specifically promised to examine something called the Comstock Act, an anti-vice law from the late 1800s, to potentially outlaw the mailing of abortion pills, regardless of what the FDA says. Alice, what would that mean? 

Ollstein: So, I think it’s important to emphasize that Blanche only promised to review this. He didn’t promise to make any specific changes. I saw a lot of anti-abortion activists getting, I think, a little overly excited about what he said. You know, they could review it and take no action. I think it’s also important to remember that Trump specifically promised on the campaign trail not to use the Comstock Act to go after abortion pill providers. You already have activists on the other side, pro-abortion rights activists, characterizing that as the kind of national ban, federal ban that Trump also promised not to enact. You know he specifically has this, you know, “leave it to the states” stance, and you could argue he’s already broken that in some ways. But this would be a much bigger way. So, a lot of different ways the government could cut off access to abortion pills by mail came up in the hearing. The Comstock Act is one of them. I think what abortion rights activists find troubling about the Comstock Act, in particular, is that it could be used to cut off access to both mifepristone and misoprostol, whereas the strategies that the anti-abortion movement is using that are focused on the FDA are pretty much only focused on just one of those two drugs that have to be used together for abortions. So, if the FDA were to act to restrict mifepristone, people could still have abortions just using misoprostol. But if they tried to use the Comstock Act, they could cut off access to both, which could also impede people’s access to those drugs for nonabortion purposes, which they are used for. 

Rovner: Misoprostol has a lot of other uses. I mean, mifepristone is primarily an abortion drug that’s also used for miscarriage. But misoprostol is an anti-ulcer drug that’s used for a whole lot of different indications that have nothing to do with reproductive health. 

Ollstein: And that’s a big part of why the Biden administration put out this memo from the DOJ [Department of Justice] saying that they don’t think the Comstock Act should be used to prosecute doctors who prescribe abortion pills and mail them because you can’t know if the person is ordering them for a legal or illegal purpose. And, you know, obviously people quibble with that in various ways, but that is the sort of underlying rationale, and that precedent is still in place, and that’s what these senators were trying to push Blanche to change, if confirmed. 

Rovner: And yeah, I say, and clearly all of this depends on whether or not Blanche gets confirmed as attorney general, which is still up in the air, mostly for other reasons. But 鈥 

Ollstein: Yeah, absolutely, people are upset with him for the handling of the [Jeffrey] Epstein files and all kinds of stuff. And just one GOP senator on the committee could block him from going forward. So it’s not all about this, but this is definitely in the mix. 

Rovner: Yes, I think so. Well, moving on, as we’ve noted, the big cuts to Medicaid from the 2025 Republican budget bill mostly don’t start until next January. But states whose fiscal years started this July 1 are already making changes in order to be ready. Several states are already trimming back Medicaid benefits that are optional for states, including many community-based long-term care services. This is despite Republican assurances last year that traditional populations of moms and kids, seniors, and those with disabilities wouldn’t be impacted by the cuts. Stat has a  out of Maryland about cuts to a family caregiver program that may leave a family with the choice of either going bankrupt or putting their disabled child into an institution. It’s hard to see how this isn’t going to be a big campaign issue, right? I mean, this, you know, there were all of these claims that, you know, we’re really only going after the able-bodied Medicaid recipients. That’s not what states are doing.  

Raman: I mean, we’ve already seen it becoming a campaign issue. I mean, even before this was passed into law, we saw Democrats really, like, going in on this far before the midterms, you know, emphasizing this over and over and over again. And I see, you know, they’re going to continue doing that, especially when costs are such a big issue for voters this year. And if you lose Medicaid, then that is another added cost for you if you have a health issue of any kind. But I think what’s even more interesting is how this has been really played back on the Republican side. They’re not talking about this as much as they did a few months ago. Even, you know, we passed the anniversary of the law earlier this month, and there wasn’t a big push on this like there has been on other issues. They’ve really shifted into talking more about 鈥 as for in the healthcare bubble, we’re talking about fraud, fraud, fraud, not any of the things that were in the “Big Beautiful Bill.” 

Rovner: Yeah, things that they hoped people would see as an advantage are not so much right now. Well, another tack that states seem to be taking is not to cut Medicaid for recipients, but rather to get someone else to help pay the bill. And they’re targeting large employers of low-wage workers who have Medicaid. New Jersey is planning to charge those larger employers a fee. Other states are looking at ways to do something similar. But there’s not just pushback from business groups, who obviously don’t want to pay a fee for their workers who are eligible for and get Medicaid. Some advocates for low-income people say that it will make it harder for workers who get Medicaid to stay employed if their employers will be penalized. I know this was, you know, this came up many years ago 鈥 I think just after the beginning of the Affordable Care Act, when there was concern that a lot of big employers were actually going to dump their workers onto Medicaid. Many of them in the end did not. But it’s hard to see how this is really going to catch on. I grant states creativity for, like, OK, we’re not allowed to ask healthcare providers to help pay our Medicaid bills anymore. So now we’re going to ask big employers to help pay our Medicaid bills. 

Edney: Well, I think it’s an interesting 鈥 it’s probably a tough calculation for the people, you know, that are actually making this decision. The person who’s deciding, you know, do I take this employer insurance or Medicaid? And then you do want to push employers to offer plans that are affordable and that are comprehensive. That’s what they’re supposed to do, especially these big employers. But there can be kind of a lot of calculation that goes into this: maybe the size of the household, who else in the household might be working. So you know, I can see why it might feel like it’s not just on the company, but maybe some of the employees who are making these decisions could end up suffering. 

Rovner: Yeah, as I say, kind of points for creativity, but not clear that this is actually going to catch on because there are clearly going to be problems with it. States are going to have to keep looking to figure out how to continue to pay their 鈥 share of the Medicaid bills. As Sandhya already mentioned, some of you may have noticed the U.S. is having an outbreak of something called cyclosporiosis, which is an infection caused by a parasite that causes, let’s just say, major gastrointestinal upset. Screening for the parasite, which, by the way cannot easily be washed off of infected produce or other food products, used to be part of a list of parasites whose reporting was mandatory to the CDC’s Foodborne Diseases Active Surveillance Network, known as FoodNet. But it was made optional last year, and, as of now, we still don’t know what foodstuff is spreading this parasite 鈥 although suspicion’s being cast on lettuce or some other leafy green vegetable. Is this yet another “I told you so” about cuts to public health? And is anybody really gonna care, other than the thousands of people who are really sick right now? 

Edney: Yeah, I think that, absolutely, this is another “I told you so” in the sense that, like, you can’t just decide what bacteria you’re going to track if, you know, it pops up and you can’t really control that. And I think that a lot of people already care, you know 鈥 I think you’ve seen a lot of decisions being made, at least that’s what social media has indicated. I have not seen, like, shopping numbers, but people seem to be concerned. 鈥 They don’t want to buy lettuce, raspberries, cilantro, things that have been implicated in these outbreaks before. And so, with states not reporting to FoodNet, it’s harder to track in real time. So it’s taking longer to narrow down what food is responsible for this, what, who the producer is. So people are left wondering and left just cutting, you know, entire fresh fruits and vegetables out of their diet at this point. They’re really worried. 

Rovner: It kind of cuts against the whole “eat healthier.” 

Edney: Exactly. 

Rovner: Like when the healthiest things might cause all kinds of problems. 

Edney: Yeah, I mean, you know, if all you feel comfortable eating is packaged goods and microwaving all your food to make sure it’s safe, I think it is a problem. And there are people I think who do feel that way, especially in states, you know, in the Midwest that have a lot higher numbers of these cases. 

Rovner: I would say the federal government keeps saying, “Oh, we get cyclospora outbreaks every year,” and we do. But this is much, much higher than it has been in many years. Sorry, Alice, you wanted to say something. 

Ollstein: Well, I mean, it’s the classic situation of, you know, when public health is working well, it’s completely invisible, and so it’s easy to take it for granted. And you can say, well, there hasn’t been a serious outbreak in this many years. What’s the point of this expensive monitoring and prevention program? And turns out, this is why. It’s a very thankless sector because when it’s working well, you don’t get any kudos. You don’t get any awards for not having an outbreak of diarrhea parasite. But everybody gets upset when there is an outbreak of diarrhea parasite. 

Rovner: And screwworm, which we also have after we canceled some of the watchouts for it. All right, we’re going to take a quick break. We will be right back.  

OK, we are back. So in news from what I’m calling the “Department of Updates,” a couple of weeks ago we talked about Health and Human Services Secretary Robert F. Kennedy Jr. calling up libertarian candidates in Iowa in an effort to get them to drop out of House races in order to prevent them from siphoning votes from Republicans. Well, now Oregon Democratic Sen. Ron Wyden is officially asking the U.S. Office of Special Counsel for an investigation into whether that violated the Hatch Act, which generally prohibits federal employees from participating in political activities. Of all the, quote, “scandals” attributed to RFK Jr. since he’s been in office, where does this one rank? 

Edney: That’s a really good question. I’m not sure a lot of people might understand the gravity of it, but a person in appointed position is not really supposed to be weighing in and putting their thumb on elections and influencing those outcomes. I mean, that’s the law. And so it is a Democrat asking for this investigation, which the consequences might be less heavy, I guess, you never really know. I mean, I think it does, kind of the whole situation. Secretary Kennedy’s trying to influence these does kind of show you how worried they are, how worried he is, that he might have to go up before Congress should Democrats win the House and answer a lot of questions under subpoena. 

Rovner: Yeah, and of course that’s exactly what he said to the libertarian candidates when he was trying to get them drop out is, like, if the Democrats take over the House, I’m going to spend all of my time, you know, on Capitol Hill rather than working to, you know, make America healthy again. That was his argument.  

All right. Well, another topic we have spoken about before is the proposed rule from the Office of Management and Budget to give political appointees far more power over which scientific and medical grants get funded. The comment period for the rule closed this week with nearly half a million comments filed. That’s a whole lot, by the way. And our friends at Stat, with help from researchers at the University of North Carolina,  that have been posted so far, and found them overwhelmingly in opposition to the rules, with concern about politicization of science dominating the reasons. I still feel like this is an under-covered story. We’re talking about the fate of more than a trillion dollars in federal funding each year, and a huge change in the way this money is allocated and spent. I mean, you know, already we’ve seen the administration trying to hold back some of this money and getting pushback from Congress, but this would basically codify, if you will, the ability of political appointees to say, We’re not going to give you money unless we agree with it. Essentially. 

Raman: I mean, I think even from the get-go of this comment period, there has been that groundswell of people submitting comments. You know, even a few days in, we were hitting numbers that we would usually maybe not see even throughout the whole comment period for other proposed rules. And so much of that in, like you said, the scientific community has been this. But grants extend to so many departments in the federal government and cover so many different things, and I think it’s kind of hard to quantify just how sweeping something like this would be. Even, you know, looking at a few different pieces, just because the types of grants are so different. 鈥 So many grants are multiyear, and might go from one administration to another, and then be implemented. And if politicization of approving or rubber-stamping continuing grants is there, that would create a lot of up and down in terms of Will these things continue? So I will not be surprised if as we get a little further along there is more litigation filed with people trying to stop this. It’s just we’re at this stage now where proposed rule time is not really where you would you would get that. There needs to be a little further in the process. But yeah, I think this is something that a lot of people are really keeping an eye on. But it is something that’s harder, I think, to communicate out to folks that maybe don’t realize that they are using grant money for something that is available in their community.  

Rovner: We need a Schoolhouse Rock! for peer review and grant-making. Maybe I’ll have to do a video with the dog. Yes, my next video with the dog. 

Ollstein: Just quickly, I will say that the abortion rights community is very anxious about this. They worry that it will lead to any sort of research remotely tied to reproductive health will be cut unless it’s, you know, explicitly pro-abstinence, pro-fertility. But again, like we talk about with so many things, when you implement these changes, it cuts both ways, and a Democratic administration in the future could wield this in ways that conservatives don’t like. And so 鈥 

Rovner: I think what freaks out the science and medical community is just the lack of continuity. It’s that if it’s going to change back and forth, I mean, one of the things that research really depends on is that research takes as long as it takes, and that often stretches way across Democratic and Republican administrations. That’s kind of the idea of not having this be in charge of political appointees. So I think that’s a lot of 鈥 I mean, I have obviously have not read half a million comments, but many of the comments I’ve seen have suggested that there’s concern about the going back and forth that would be as damaging as anything else. 

All right. Well, speaking of updates,  that the Department of Health and Human Services is backing away from a new regulation proposed with much fanfare last December that threatened to withhold Medicare and Medicaid funding from hospitals that offered transgender care to minors. Some 30,000 comments on that rule were filed, including those from major medical groups urging that the rule be rejected as an unwarranted interference in medical care. The administration actually pushed back against the NPR story, saying the rule hasn’t been officially pulled, which does appear to be the case. But it seems that officials are kind of trying to have it both ways by leaving the possibility that it could be revived hanging over hospitals’ heads. Is this kind of a clever way to put pressure on hospitals to do what the administration wants without actually having it litigated about whether the administration has the legal authority to do this in the first place? 

Edney: Yeah, I think that’s a good point, that are they sort of leaving it in place without ever fully implementing it? Because states are supposed to be able to regulate this, not have the federal government tell them what to do. And certainly, you know, the hospitals could have their say in it. So they could have been facing a lot of litigation, and I think not pulling it doesn’t mean that it’s not gone. It’s just, you know, according to the story, they clearly decided not to go forward with it. But leaving it in place does kind of, for the hospitals that already moved on this, and we did see some that got nervous. Then, you know, they might be the ones who kind of keep everything in place, just because they’re not sure. 

Rovner: Yeah, I mean they’re making the point that they’re not moving forward on it now. But that doesn’t mean that they’re never moving forward on it, which seems to be a theme from this administration on a whole lot of things. It’s like: We’re not going to do this now, but we still could do it later.  

Well, finally this week, there’s always plenty of news on reproductive health. Alice, I feel like I’m being transported back to, like, 2014 or even 2018, but it looks like the Trump administration is going to try again to  as required by the Affordable Care Act. Why are we debating this again now? 

Ollstein: So this is the case that won’t die ever. Apparently. This is about a workaround in the Affordable Care Act that was created so that religious employers who really object to contraception for, you know, deeply held faith reasons, there’s a workaround so they don’t have to pay for the insurance that covers contraception for their employees. But their employees can still access that contraception coverage if they want it. But certain groups have kept suing over this again and again over the years. It went all the way up to the Supreme Court, and then it came back, and now it’s bouncing around in the lower courts because they say that even participating in that workaround is a violation of their beliefs. Now, on a sort of parallel track 鈥 

Rovner: They are facilitating 鈥 right, obviously, they are facilitating. They’re “complicit.” That’s the word they’re using; they are complicit in allowing people to get contraception, which they don’t believe in. 

Ollstein: Correct, and 鈥  

Rovner: “They” not the people who are getting it, “they” the people who are complicit in getting it. 

Ollstein: The bosses, yes. 

Rovner: Right. The bosses. 

Ollstein: So, sort of on a parallel track, the Trump administration tried to vastly expand the number of companies, the kind of companies that could say we don’t want to provide contraception for our employees, so that now it doesn’t have to be because of a religious belief. It could just be because of an ideological belief. And also now this could be, you know, a big for-profit, publicly traded company, not just a small religious group. Folks have been fighting this, and so here we are back in court again. This is, you know, an ongoing struggle. Of course, you know it’s important to remember that the question of whether or not working folks can access contraception has much higher stakes now that abortion is illegal in much of the country. 

Rovner: We will see. Well, and while abortion doesn’t seem to be as big a political issue in 2026 as it was in 2022, we are seeing ballot measures in several key states, as well as abortion being centered in places like the Maine Senate race, where ostensibly pro-choice Republican Sen. Susan Collins’ vote to confirm Supreme Court Justice Brett Kavanaugh is being hung around her neck, even though she doesn’t have an actual Democratic opponent yet, after Graham Platner dropped out. How is abortion shaping up as a political issue this year? Alice, you’re, I assume, following this. Sandhya, so are you, right? 

Ollstein: It’s interesting. I have a story coming on this in the next day or so. The Democrats who are jockeying for the chance to take on Collins and all of the outside groups supporting them and rushing through this process, they’re very anxious about the ability to make the case that Susan Collins has, as they say, betrayed, you know, her promises to protect abortion rights by confirming not only the Supreme Court justices who helped overturn Roe v. Wade, but a lot of lower court judges who have voted for abortion restrictions in a lot of states. And so they want to be able to put that front and center in their campaign against him. And so they’re really anxious about the records of the Democrats running, because they don’t want to muddy that message at all, and to have Susan Collins have the opportunity to say, Actually, these people have a worse record than me on this issue. And so there’s a lot of hand-wringing on that front. And it’s just tough because some of the Democrats running have a mixed record on this. They used to oppose abortion, and then in more recent years have, you know, passed very strong legislation supporting it. And then you have a lot of candidates who have no record at all on this. They have no voting record. Some of them have never held office before, or this issue just has not been something they’ve had a chance to work on. And so, it is tough for voters to compare someone who has a mixed record but made real accomplishments for abortion rights versus people with no record at all. 

Rovner: So, abortion is going to be an issue, but maybe not sort of 鈥 like with the attorney general, “in the mix” 鈥 is that a fair way to put it? 

Ollstein: Oh, absolutely! And no matter what, it’s going to be a huge part of the campaign against Susan Collins. You’re already seeing groups start to air ads about it. 

Rovner: All right. Well, that is this week’s news. Now we’ll play excerpts from my “How Would You Fix It?” interview with Elizabeth Mitchell. You can . And then we will come back and do our extra credits. 

I am pleased to welcome Elizabeth Mitchell, President and CEO of the Purchaser Business Group on Health, to “How Would You Fix It?” PBGH represents large employers and other institutional buyers of healthcare from both the public and private sectors. Elizabeth Mitchell, thanks for joining us. 

Elizabeth Mitchell: So glad to be here. A lot to fix. 

Rovner: Yeah, a lot to fix. So I want to start by having you talk a little bit about employers’ role in the U.S. healthcare system 鈥 how it started, and why it persists. 

Mitchell: Yeah, well, I think we know it was an accident of history, right? They weren’t looking to get into the healthcare business, but when, you know, they were looking for alternatives to wages, when there were limits on what they could offer, and they started with what was a pretty inexpensive offering, helping pay for hospital care. And that has now grown to be the second-largest line item in their budgets after payroll. So it has taken on a life of its own. Employers cover over 160 million Americans, so they are a major player in healthcare in the U.S., for better or worse. But they are committed to achieving just a better system because they’re paying for it and because their employees need it. 

Rovner: What’s unique about large employers, particularly the large employers that you represent 鈥 the ones that not only pay for their workers’ health benefits but also design and manage them in most cases? 

Mitchell: Yeah, it’s a great question. I work with large and jumbo self-insured employers and public purchasers like CalPERS. 

Rovner: CalPERS, for those who don’t know, is the California pension system. 

Mitchell: Yeah, they are the second-largest purchaser after Medicare, I believe. So not small. And honestly, the major difference for large employers is the leverage, right? They have the ability to negotiate arrangements that small employers just don’t have. You know, there is somewhat of a myth that the health plans are responsive to large employers. That is sadly not often the case. As large employers have sought to exercise that leverage, the system has consolidated in response, so the health insurers have consolidated, the health systems have consolidated. So there’s been this arms race of consolidation, meaning that even the largest employers in the world are smaller and don’t have the leverage many times. So they’re looking at how can they align or aggregate even across large employers to really drive the changes they’re looking for? 

Rovner: Well, the premise of this entire project is that we’re heading towards another major national debate over health because just about every stakeholder is unhappy with the status quo. I assume that’s at least as true for large employers now as it was in the early 2000s, when the ground was being laid for the Affordable Care Act. Do you agree with that? And just how dissatisfied are your members with the current functioning of the healthcare system? 

Mitchell: I do not know any employers that are happy with the current system. I will say that that dissatisfaction is growing exponentially every year of double-digit price increases and lack of access and just administrative complexity. We are seeing readiness for wholesale changes that I’ve never seen before. So there is very high frustration, but I also see that as a big opportunity. 

Rovner: So how would your members fix the system? What are some of those policy changes that they would like to see? 

Mitchell: So there is no simple answer. I know that goes without saying, but there’s a collection of changes that we are prioritizing based on evidence. So one of them is primary care, really robust primary care 鈥 and not the kind that is just set up as a feeder into the health system 鈥 is a top priority for our members. Another really is more on the purchasing side, right? There is so much administrative waste in the system. And some of our members now are turning to AI just to look at their contracts and realize that they are paying these absurd fees they never agreed to. And then finally, transparency. It is absolutely essential. There are immediate savings opportunities just by looking at the data and realizing you can get the exact same quality or better-quality service across the street for a fraction of the price. And that has immediate savings for out-of-pocket costs as well. So, using transparent information to find the best partners, banning anticompetitive practices, and investing in primary care and high-quality specialty care. Those are my top few. 

Rovner: There are voices both on the left and now on the right who would like to get rid of the basically employer-based system that we have 鈥 you know, “Medicare for All” 鈥 and would anticipate, would take that away, you know, basically would have the government, if not providing them, at least paying for all healthcare services. Now we’re seeing Republicans talking about, you know, big bad insurance companies, and we should just give people money, and they should buy their own care. Where are large employers on that, sort of? I assume they would like to keep some semblance of the system that we have now in a reformed system, or am I wrong? Are they ready to give it up and let everybody fight it out for who provides healthcare? 

Mitchell: Well, I represent a subset of jumbo employers who are very progressive, very innovative, and very invested in fixing the system. That said, I don’t think anybody would say it’s working right now. We have a very real affordability crisis. And I would say jumbo self-insured employers are some of the best-positioned actors to do something about that. They have the opposite incentives. They want lower cost and better quality. So if they are empowered and enabled, in some cases through policy change, to be more effective purchasers, I do think that that is a viable strategy still. Because even if you just gave everyone cash, you still have a price problem. It just becomes the problem of the patient instead of the purchaser, because prices are the issue here, and consolidated, unresponsive providers and plans. There is a tendency, and it’s not totally unjustified, of blaming the customer. But there are some aspects of our system that need to change. Whether the government’s paying for it, individuals are paying for it, or employers are paying for it. So it’s a matter of how do we get at that? If it was Medicare for All, they set prices. Maybe that will work. I think the opponents of that historically have been hospitals and health insurers, not employers. But employers are committed to playing a very active role in achieving affordable, high-value care. 

Rovner: Well, that was sort of my question: Are employers ready to say: We just, we would like to wash our hands of this and let somebody else do it? Or would they prefer to stay involved? Or I guess I’m sure it depends on the details.  

Mitchell: It depends. I mean, again, we don’t work very much with small and midsized employers, but 鈥 

Rovner: I’ll talk to them separately. 

Mitchell: Yeah, it wouldn’t surprise me if they wanted to wash their hands of it, because they have so little leverage. I think that there are large employers who remain committed to this. But depending on the policy environment that we are in in the next three to five years, who knows? I do think that if employer-sponsored insurance doesn’t demonstrate real affordability in the next few years, you know, I think it’s an open question. 

Rovner: So we seem as a society to be growing further apart rather than closer together on a lot of policy issues 鈥 not just healthcare, but education, climate, immigration. How do we get back to a place where people who disagree can work together to address something that everybody agrees is a problem, like the state of our healthcare system? I realize that’s sort of beyond your pay grade, but unless people think about it, we’re not going to get there. 

Mitchell: No, I think it’s a really, really important question. I don’t necessarily have the answer. But, I mean, I think it’s also finding where we have agreement, right? Everyone, well, all the people I work with, think we are paying too much for healthcare, so we’ve got to have a clear goal of affordability. And employers alone can’t fix that, right? So how do they partner with clinicians and providers and communities and governments to actually achieve that? I think if you focus on those sort of pragmatic shared goals, I mean, it may lower the temperature a bit. Healthcare is also so complex. Everybody sees different sides of the elephant, and they, so they have very strong views. They’re not wrong. It’s just not the whole system. So really, taking a systems approach, understanding the existing practices and incentives and behaviors. I think level-setting on why we are where we are is also really important. And I do not believe it is well understood. I talk to Congress a lot, and staff, and agencies, and administration, and, you know, there is a pretty deep understanding of Medicaid and Medicare, but not the commercial market. So really understanding the actual barriers, I think, would go a long way to sort of, you know, at least some initial consensus. 

Rovner: So more education, basically. 

Mitchell: Education and alignment on large goals, even if we have some differences on, you know, how we get there, and respecting that there are going to be different strategies, you know. I’m in Maine right now, and rural Maine may need a whole different approach to paying for rural behavioral health than you would have needed in San Francisco. So let’s be open to multiple approaches to the same problems. 

Rovner: Looking forward to the debate. Elizabeth Mitchell, thank you so much. 

Mitchell: Thank you. 

Rovner: OK, we’re back. It’s time for our extra-credit segment. That’s where we each recognize a story we read this week we think you should read, too. Don’t worry if you miss it. We will post the links in our show notes on your phone or other mobile device. Anna, why don’t you go first this week? 

Edney: Sure. This is a story that I wrote. It’s “.” During covid, obviously, a lot of personal protective equipment we had issues getting it. There were shortages, and so the government decided to spend almost a billion dollars on these handful of companies that they were going to try to boost medical glove-making here. And those are like the nitrile exam gloves you see in every hospital, every doctor’s office. And we were not fully making them here. The main ingredient, particularly the most important piece, we weren’t making here. Well, fast-forward six years, we are still not making it here. So none of those companies that the government funded are making medical gloves. And so, essentially, we’re at the point where there are full entire factories built with huge reactors and things to try to make this main ingredient because it’s a petroleum product. But they aren’t able to finish the project; they aren’t plugged in and ready to go. And the U.S. government has decided they’re not going to fund that anymore. These went from Trump 1 to Biden to Trump 2, and Trump 2 has said we’re letting this go. We’re not going to do it, and this factory will probably end up being sold for parts. Others have shut down, and we’re getting our medical gloves still mostly from Malaysia. Kind of the reason I wanted to write this now is because it’s just when the government decided to abandon this project, but also because of the war with Iran has raised the cost of petroleum products, which is the main, you know, nitrile butadiene rubber. And so the cost of that has gone way up, and so we’re kind of in this cycle where we still can’t get it, but it’s still being affected by outside forces. 

Rovner: Well, thank you for doing the accountability journalism on this. It was. I really, really liked this story.  

Ollstein: Thank you. 

Rovner: Sandhya. 

Raman: So my extra credit this week is from my colleagues Nyah [Phengsitthy] and Skye [Witley] at Bloomberg Law, and it’s called “.” So they spent a few months looking at the, you know, hundreds of different supplements and different packaged foods that have been, like, trying to gain momentum in this space because of the popularity of GLP-1 medications and just, you know, there has been really limited federal oversight of claims of these, you know, the supplements and the foods. It’s causing 鈥 

Rovner: I would say, and to be clear, these aren’t people trying to make GLP-1s. These are people making supplements that are to appeal to people who are on GLP-1s, saying, you know, if you want it because you’re not eating as much, here’s a way you could get the nutrition that you need. 

Raman: Yes, absolutely. So you know, it might say like GLP-1-friendly, or, you know, it might be on, you know, a snack food you buy, or, you know, just a supplement that’s unregulated at a drugstore. And just a lot of the confusion there. There’s not a lot of research on some of these things. There’s, you know, a lot of litigation brewing in different places related to this, and there’s not, you know, a standard federal definition of what something like “GLP-1-friendly” even means. So they have a great deep dive into this. So you should take a read.  

Rovner: Yeah, at some point, Congress is going to have to take another look at the whole supplement regulation thing. But I thought this was really fascinating because it’s just a whole new sort of category of supplements that has popped up in the wake of the GLP-1 popularity. Alice. 

Ollstein: I have a story from my co-workers Amanda Chu and Robert King [“”], and it’s about how the federal government’s attempt to crack down on what they claim as widespread Medicaid fraud in Minnesota, in particular, is having all of these damaging spillover effects and has cut off Medicaid payments to a bunch of providers: mental health, eldercare, all kinds of things 鈥 folks that are not suspected of committing fraud at all. The state is pausing payments to a wide range of providers while they try to implement these new anti-fraud measures, and so it just is a good look at the danger of using kind of a sledgehammer to go after a more narrow problem. 

Rovner: Yep 鈥 I think we’re going to see that more and more as sort of these Medicaid sort of crackdowns and the fraud crackdowns continue. My extra credit this week is from Mississippi Today. It’s called “.” It’s by Sophia Paffenroth and our own podcast pal Joanne Kenen. And it’s about something I’ve been talking about a lot this entire very hot summer, which is the impact that heat and the lack of air conditioning has on health. We know excessive heat takes a special toll on the elderly and those with respiratory issues, but it’s also super dangerous for pregnant people and the very youngest among us. And while Mississippi has been taking some novel steps to address that, a lack of attention by medical professionals and a lack of research, along with budget cuts, have been making that task much harder. It’s a topic I’m sure we will all continue to watch. 

Okay, that is this week’s show. OK, that is this week’s show. Thanks to our editor, Emmarie Huetteman, and our producer-engineer, Francis Ying. We also had production help this week from Taylor Cook. A reminder: What the Health? is now available on WAMU platforms, the NPR app, and wherever you get your podcasts 鈥 as well as, of course, kffhealthnews.org. Also, as always, you can email us your comments or questions. We’re at whatthehealth@kff.org. Or you can still find me on X , or on Bluesky . Where are you guys hanging about these days? Sandhya? 

Raman: On  and on  @SandhyaWrites. 

Rovner: Anna. 

Edney:  and  @annaedney. 

Rovner: Alice. 

Ollstein: On Bluesky  and on X . 

Rovner: We will be back in your feed next week. Until then, be healthy. 

Credits

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吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

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A Sales Tax on Doctor Visits and Medicine? In Missouri, Some Worry /health-care-costs/sales-tax-healthcare-services-missouri-state-amendment-revenue/ Thu, 16 Jul 2026 09:00:00 +0000 /?p=2259065 ST. LOUIS 鈥 Missouri healthcare advocate Leslie Ortbals and her husband want to start a family, but she worries they can’t afford it. The 27-year-old said she takes 10 medications daily to manage multiple chronic illnesses.

Now she worries the cost of those drugs could rise 鈥 not because of price increases, but because of a tax system revamp put on the ballot by the state’s Republican-dominated legislature and backed by the Republican governor.

Prescription drugs and doctor visits are currently exempt from taxes in the state. But in August, Missouri voters will weigh in on a proposed constitutional amendment to give the legislature the power to replace the state’s income tax with expanded sales taxes, including on goods and services currently exempt.

“Politicians want Missourians to trust them when they say not to worry about our medications and healthcare being up for grabs,” Ortbals said at a June press event organized by Progress MO, a progressive advocacy group.

“I have spent enough time in Jefferson City to know better,” said Ortbals, who works for a Democratic state legislator but was speaking in her personal capacity. “I have watched them speak about protecting life while making lifesaving healthcare less accessible.”

Taxes on healthcare are unusual in the United States but not unprecedented. Most states over-the-counter drugs. Illinois, Missouri’s neighbor, prescription drugs. Delaware, Hawai鈥榠, New Mexico, and Washington all on services by physicians, dentists, out-of-hospital nursing providers, and medical laboratories.

Critics of the amendment to eliminate income tax in Missouri say it’d be difficult to make up the lost revenue without also imposing taxes on healthcare. Nearly two-thirds of the state’s general revenue budget comes from income taxes, about $8.7 billion in 2026. Failing to make up that revenue could lead to steep cuts in state services.

The proposed tax cut comes at an already precarious time for the state budget. Missouri Gov. Mike Kehoe in spending in this year’s budget over concerns of lagging revenues. The state legislature has passed a since 2022, including . Federal covid aid has propped up the budget in recent years, but the that the surplus is dwindling. And the state is projected to in federal Medicaid funding over 10 years due to cuts from President Donald Trump’s signature One Big Beautiful Bill Act.

Proponents of the Missouri income tax proposal, such as of the Show-Me Institute, a conservative think tank, say the cut would in the state, both of which have been flat in recent years. He doubts healthcare would be among the things subject to sales tax. But even if it were, he said, it could be done in ways that wouldn’t target lower-income residents. New Jersey, for example, (excluding reconstructive surgeries), which tend to be performed on wealthier people.

In a statement to 吃瓜不打烊, Kehoe spokesperson Gabby Picard said the governor “will never support extending sales taxes on agriculture, healthcare, or real estate,” noting that the legislature would have to decide what to exempt if the ballot measure passes.

Federal law already prohibits states from imposing taxes on many healthcare services covered by government programs such as Medicare, the federal health insurance program for seniors, and Medicaid, the joint state-federal health insurance program for people with low incomes or disabilities, Picard wrote. More than were insured through those two programs in 2024.

But Jay Hardenbrook, advocacy director for AARP Missouri, argued that raising taxes on healthcare, real estate, and agriculture is the for the amendment, considering the legislature doesn’t need special permission to cut income taxes. He cautioned that because the amendment opens the door to new taxes on anything, it could unleash a “weird feeding frenzy” with special-interest groups lobbying for exemptions.

“Let’s say we do protect prescription drugs from a tax increase; does that mean that the cost of food goes up?” Hardenbrook said.

And if the Missouri measure passes and the legislature exempts healthcare and real estate from new taxes, Hardenbrook worries about cuts to state-funded services like home and community-based care.

“When I talk about taxes going up, and the price of every good and services going up, that’s the best-case scenario,” Hardenbrook said. “The worst-case scenario is that the income tax just goes away, and we just don’t have the money to do the things that we need to do.”

have no income tax, and Washington taxes only capital gains, but of the Institute on Taxation and Economic Policy, a progressive think tank, said the way Missouri is going about its elimination is nearly unprecedented. Only Alaska has repealed a broad-based personal income tax that had previously accounted for a significant portion of the state budget, Davis said.

“The situation in Alaska was they struck oil, and they had this gusher of economic activity and tax revenue that resulted from that,” Davis said. “Missouri has not struck oil.”

A 2012 tax cut in Kansas that reduced income taxes for individuals and eliminated them for some types of businesses created a large budget hole, prompting lawmakers there to the cuts five years later.

Tsapelas of the Show-Me Institute said Missouri’s income tax elimination wouldn’t happen overnight but would instead be more akin to in the state: phased in and tied to revenue targets that would shield the state from massive budget gaps.

“It’s not as doom and gloom as some people are worried about,” Tsapelas said.

But Ortbals, the healthcare advocate, said too many Missourians are already delaying medical care because of costs.

“I want a Missouri where young people can afford to stay, where families can afford to grow, where chronic illness does not become financial ruin,” Ortbals said.

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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Facing Funding Losses, States Call Out Big Businesses With Employees on Medicaid /medicaid/medicaid-work-requirement-big-business-employee-enrollees-states-name-shame/ Wed, 15 Jul 2026 09:00:00 +0000 /?p=2258056 As the Trump administration’s January deadline looms for states to enforce new Medicaid work requirements, some state lawmakers are turning the tables by pushing to publicly name the largest companies that have employees enrolled in the government program covering low-income and disabled people.

California lawmakers an expired law that would require the state to identify companies that employ 100 or more people and have employees enrolled in Medi-Cal, the state’s Medicaid program. Nevada has had a similar law in place since 2017, though a proposal for one in Oregon stalled when its legislative session ended in March.

The California bill author, Democratic state Sen. Lola Smallwood-Cuevas, said she is deeply troubled by what is going to happen when work requirements kick in. According to the state, out of more than on Medi-Cal will be subject to the rule.

“We think this is a bill that’s about fairness,” Smallwood-Cuevas said. “It’s a basic principle that taxpayers deserve transparency about which large employers are shifting their healthcare costs onto the public.”

Large employers that regularly top Nevada’s list, such as Walmart and Amazon, have said that the state included part-time and seasonal workers in their counts and that their full-time hourly employees to qualify for Medicaid.

Walmart spokesperson Katrina Proffitt said that the company offers affordable medical coverage to most employees, including eligible part-time workers, and that most of its plans include no-cost virtual care options.

“Healthcare affordability and access to quality care remain real barriers for many Americans, and Walmart continues to be committed to being part of the solution,” Proffitt said.

The push to name and shame companies reflects dueling narratives about the biggest abusers of the joint state-federal Medicaid program, which reached nearly in government spending in 2024. The Trump administration, led by Centers for Medicare & Medicaid Services Administrator Mehmet Oz, has called out blue states for not doing enough to fight insurer fraud and abuse. State Democratic leaders, meanwhile, are pushing back by calling attention to big employers that don’t offer affordable health benefits, which leaves taxpayers subsidizing healthcare costs for the low-wage workforce.

Some states have considered financial penalties. Democratic New Jersey Gov. Mikie Sherrill signed a bill in June that have at least 50 Medicaid-enrolled employees. Companies with 50 to 249 workers on Medicaid per person, and those with at least 500 will pay $725.

Bills that would have penalized companies with workers enrolled in Medicaid failed in this year.

In Sacramento, California, Democrats want to figure out a way to make large businesses pay for their employees’ health coverage. State lawmakers struck a deal with Democratic Gov. Gavin Newsom, who is contemplating a presidential bid as he wraps up his final year in the governor’s office, to explore tax options. Any tax hike would be up to the new governor.

States face of dollars under HR 1, the GOP tax-and-spending law known as the One Big Beautiful Bill Act, notably through that requires nondisabled Medicaid enrollees ages 19 to 64 in most states to prove they are working, volunteering, or going to school at least 80 hours a month to keep their coverage.

Yet federal work requirements are projected to increase the number of uninsured people nationwide by more than 5 million by 2034, according to the . Nebraska and Montana have begun enforcing the rule.

One health policy researcher said employer Medicaid reports highlight the lack of affordable healthcare options available to low-wage workers. More than half of adults enrolled in Medicaid who don’t have dependent children already meet the 80-hour-a-month requirement or face challenges that would likely qualify them for an exemption, .

“There’s a whole set of people who are working 鈥 they may not satisfy the work requirement provisions, they may not get the exemption that they’re qualified for, and they don’t have access to that employer-sponsored insurance either,” said Edwin Park, a research professor at the Center for Children and Families at Georgetown University.

Employers Push Back

While employer lists haven’t succeeded in bringing down Medicaid costs, supporters say measuring the burden can be the first step and help lawmakers make the case for further action.

In Nevada, Amazon has employed more Medicaid enrollees than any other company since 2020, according to the state’s report . For state fiscal year 2025, Walmart, the Clark County School District, the state government, and Tesla rounded out the top five.

Employers that the reports are misleading because they have included part-time and seasonal employees. The state’s includes only full-time employees, plus those who could not be confirmed as either full- or part-time employees.

That came to 4,914 Amazon employees and 3,503 Walmart workers in Nevada on Medicaid in 2025.

There are no penalties for companies on the list.

Amazon said it pays its workers more than double the $7.25-an-hour federal minimum wage and noted that Medicaid eligibility is based on household income and size rather than an individual’s wage. That means two employees who earn the same pay may have different eligibility depending on whether they have children or live with parents.

“Pointing fingers at Amazon over Medicaid is a red herring,” said spokesperson Alisa Carroll. “What really needs to happen is a significant and large increase in the federal minimum wage 鈥 that would be a big boost for American families.”

Nevada Medicaid spent nearly $950 million on healthcare for more than 133,000 full-time employees and more than 140,000 of their dependents. While the total amount spent dipped in fiscal year 2025, the average cost per member per year increased by nearly 17%.

Yvanna Cancela, a former Nevada lawmaker who sponsored the legislation on Medicaid work reports, said the annual reports force an important conversation “about whether or not this is the kind of economy we want and whether or not it is right or just that people who work full-time don’t make enough to have health insurance.”

A Fraying Safety Net

Health researchers say that uninsured people delay or skip and that their children may end up losing coverage, too.

One analysis found that more than were enrolled in Medicaid and the Children’s Health Insurance Program this April than in January 2025. California is among the states with the among children.

The loss in healthcare coverage among residents will be compounded by the loss of public food assistance benefits, Smallwood-Cuevas said. is pending in the legislature.

She compared Medi-Cal to a trampoline that has become a “very tattered kind of fishnet” overwhelmed by people falling into it. President Donald Trump’s spending-and-tax law pulls and rips at the safety net, she said.

When people lose food assistance and health benefits, they must choose between paying for medicine and paying for rent, Smallwood-Cuevas said.

“We’re going to see more people in their cars, more people on the street, and a lot more people in the emergency room,” she said. “That is dangerous for all of California.”

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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As GOP Cries Fraud, Newsom Backs Medicaid Spending on Housing and Food /medicaid/medicaid-social-services-gavin-newsom-california-republican-criticism/ Mon, 13 Jul 2026 09:00:00 +0000 /?p=2256086 SACRAMENTO, Calif. 鈥 Sen. John Kennedy of Louisiana is taking aim at California’s Medicaid program for providing housing assistance, food, and other social services to high-need, low-income patients who tend to rack up big healthcare costs and, he argued, strain taxpayer funds.

The Republican blasted California during back-to-back political attacks in May, saying the heavily Democratic state is committing “outrageous fraud” and “stealing” by spending state and federal Medicaid money meant for basic medical treatment on unconventional services such as housing and nutrition assistance, gym memberships, and even tribal prayers and, he claimed, exorcisms.

“The California Medicaid program will pay for herbal medicines, meal deliveries. They’ll pay for housing,” Kennedy said. “I don’t know what housing has to do with healthcare.”

“California, they’re just setting all kind of records,” he added. “They’re wild people.”

Despite criticism from congressional Republicans and growing scrutiny from the Trump administration, Gov. Gavin Newsom, a Democrat considering a presidential run, said he’s proud of California’s spending on social services in Medi-Cal, the state’s Medicaid program. It’s a multibillion-dollar experiment to help medically frail patients meet their housing, food, and other social needs that Newsom says is not only legal but also a more cost-effective and evidence-backed approach to providing healthcare for Californians with complex health conditions. He counters that investing in services outside clinical settings can help people avoid emergency rooms and hospital admissions, improve their long-term health, and ultimately save taxpayers money.

“It’s about whole-person care,” Newsom said, adding that he hopes President Donald Trump’s administration sees California’s leadership and agrees with the “reforms we’re advancing as national best practices.”

Now one of the governor’s marquee health initiatives is at the center of an intensifying partisan battle with Republicans in Washington, D.C., who have moved to rein in billions in healthcare spending on low-income and disabled people across red and blue states. It’s a philosophical divide: Conservatives say social services are a financial strain on Medicaid and shouldn’t be considered healthcare, while liberals argue that investing in prevention ultimately saves money. While experiments proliferated across the country under President Joe Biden, the Trump administration federal policy encouraging state Medicaid programs to address health-related social needs.

The Medicaid fight is putting patients in limbo.

Lucy Rodriguez teaches Mexican folk dancing in the town of Hollister, in California’s Central Coast region. She said her life turned around this year once an intensive case manager with Titanium Healthcare, which contracts with health insurers to provide services, began helping her manage her chronic diseases and stay on top of her medical appointments and prescriptions, even picking up free food boxes for her. The 73-year-old is on Medicare and Medi-Cal, which offers more extensive benefits. The low-income health program has helped pay her utility bills, and she was recently approved for home-delivered meals.

“This has been a godsend,” said Rodriguez, who has diabetes, high blood pressure, and kidney disease. “I was getting so stressed out and depressed. It’s really hard when you’re on a fixed income. Groceries are so expensive, and with summer, electricity gets even more expensive. But this is really improving my life.”

She worries the Trump administration will cut benefits to low-income older people.

A woman with short gray hair smiles towards the camera.
Lucy Rodriguez, an enrollee in California’s Medicaid program, known as Medi-Cal, has benefited from social services the program covers, including a care manager who helps her manage her diabetes and kidney disease. (Angela Hart/吃瓜不打烊)

Last year, the Centers for Medicare & Medicaid Services warned states that federal funding for social services would be determined on a . CMS spokesperson Christopher Krepich said the agency is not ending current agreements, known as waivers, that grant states temporary permission to provide social services, which are paid for with state and federal dollars. But future applications, for new services or to extend existing initiatives, could be at risk if they veer too far from traditional healthcare.

“Moving forward, CMS will work with states on innovative waivers that address core healthcare needs, as consistent with evidence-based approaches tied to clinical diagnoses and services, to the goal of ultimately improving health outcomes in the Medicaid population,” Krepich said in a statement.

In a further escalation, the Justice Department put out a allowing states to institutionalize people with disabilities and severe mental illness instead of providing community-based care. Republicans have also targeted states, mostly blue ones, for what they say is a failure to go after waste, fraud, and abuse in Medicaid. In May, CMS Administrator Mehmet Oz stood alongside JD Vance as the vice president announced the deferral of in Medicaid money to California over suspicions of fraud.

California Attorney General Rob Bonta said Republicans are simply trying to score political points while ignoring the healthcare needs of poor people. “The federal government wants to politicize fraud,” Bonta said, “and use it, unfortunately, as a bludgeon and a cajole to beat up on blue states.”

Social Healthcare

Health policy researchers say roughly are linked to socioeconomic, environmental, and behavioral factors, such as housing instability, homelessness, food insecurity, and exposure to violence, whereas 20% is associated with medical care delivered in hospitals and clinics. That evidence to tackle social services.

At least 24 states use their own money while drawing federal Medicaid funds for . Colorado, Massachusetts, New York, North Carolina, Oregon, and Pennsylvania are among those that provide housing and nutrition assistance.

As the Trump administration pulls back on social services, states are rethinking how to fund benefits that have improved preventive care for low-income people. Some have launched new benefits under what’s known as a state plan amendment, a mechanism states use to modify their Medicaid programs that doesn’t need federal waiver approval. and , for example, use this to add recuperative care for homeless patients after hospitalization. These short-term care facilities offer people the opportunity to recover, bridging the gap between hospital discharge and independent living.

This approach “has the advantage of establishing a permanent, statewide benefit that does not require ongoing federal renewals, offering greater stability and predictability,” said Lynn Sutfin, a spokesperson for the Michigan Department of Health and Human Services.

Other states, meanwhile, rely on federal waivers, which require renewal to provide social services. Arizona officials said the state intends to submit a request by the end of September to continue to provide housing and other services to homeless patients, or those at risk of homelessness, with a serious mental illness and a chronic health condition or recent incarceration.

“When members have access to stable housing and supportive services, they are more likely to engage in ongoing care and less likely to experience avoidable emergency department visits and inpatient admissions,” said Roberta Harrison, interim director of the Arizona Health Care Cost Containment System.

California, which has been the most aggressive state in adopting social services, has taken a two-pronged approach to keep its vast offerings funded past this year. The state is using its authority to make most of its existing social services and benefits permanent in Medi-Cal managed-care coverage. That regulatory maneuver bypasses federal waiver approval 鈥 a move that could attract further Republican scrutiny.

But not everything the state offers can be funded without permission from the federal government. As some services are made permanent, the Newsom administration is seeking new waivers to continue other social services, while also adding more.

It’s an ambitious approach that would expand California’s social healthcare experiment. Newsom said he’s worried that the federal government will decline the . “How could you not be with this administration?” he said. “I’m always concerned.”

A senior woman checks her blood pressure at her kitchen counter.
Rodriguez tests her blood sugar to help manage her diabetes. Conservatives say that spending healthcare funds on nontraditional services such as housing and nutrition assistance is inappropriate, but liberals say it saves money in the long run. (Angela Hart/吃瓜不打烊)
A senior woman shows the place on her arm where her blood pressure cuff goes.
Through Medi-Cal, Rodriguez has received help managing medical appointments after arm surgery. State officials say social healthcare provides a more cost-effective approach for people with complex health conditions. (Angela Hart/吃瓜不打烊)

New Front in Healthcare

California offers most of its health-related social services under within Medi-Cal, which has a proposed budget of . Although there are more than 14 million residents on Medi-Cal, the state has been selective about who gets help from in its program, called California Advancing and Innovating Medi-Cal, or . Patients with complex needs can also receive help navigating their health and social needs from specialized social workers under a benefit known as .

Since 2022, California has been offering social services, spending nearly $12 billion in joint state and federal money, long-term Medi-Cal spending by keeping enrollees out of costly institutions including emergency rooms, jails, nursing homes, and mental health crisis centers.

CalAIM had provided social services to more than patients as of September 2025, the most recent state data available. And nearly low-income Californians have received intensive . Some patients receive both services.

Among the services California is making permanent: Homeless patients can get help finding an apartment, with Medi-Cal paying rental and six months of rent. Patients with chronic conditions such as diabetes and heart disease are eligible for home-delivered meals. Asthmatic patients can get mold removed from their homes to control flare-ups. Low-income seniors with disabilities can get a wheelchair ramp installed free of charge. And inmates leaving jail or prison can be connected immediately with primary care, mental health, and substance use treatment.

The social services 鈥 especially housing, food assistance, and home modifications 鈥 are success in stabilizing the health of the most complex patients, while achieving savings for Medi-Cal through reductions in emergency room visits and hospitalizations and less reliance on institutional care such as nursing homes, the state Department of Health Care Services.

In the Central Valley, for instance, Health Plan of San Joaquin CEO Lizeth Granados said CalAIM has helped place homeless patients who were routinely hospitalized into housing. And patients with uncontrolled diabetes saw their blood sugar drop after receiving nutrition counseling and home-delivered meals.

Overall, Granados said, the health plan has seen major improvements in chronic disease management and reductions in hospital stays, dropping to 44 inpatient hospitalizations per 1,000 members since it launched in 2022, down from 61 per 1,000 before CalAIM.

In Orange County, officials with CalOptima Health credited CalAIM housing services for contributing to a nearly . “We’ve been able to expand our street medicine programs, too,” said Yunkyung Kim, the insurer’s chief operating officer.

Around the state, Medi-Cal health insurers said they’re optimistic that CalAIM will continue to save money and improve patient health. Yet, the fate of some services will be decided by the Trump administration.

California has asked CMS to continue enrolling jail and prison inmates in Medi-Cal 90 days before their release to maintain consistent treatment for substance use, mental disorders, or physical conditions, a .

The state has also proposed a new job assistance benefit that counties could opt into to help patients find and retain work in response to upcoming federal work requirements imposed by congressional Republicans’ One Big Beautiful Bill Act, signed by Trump last summer.

And the state wants to continue its array of traditional healers and natural helpers for Californians with tribal affiliations, including music therapy, dancing, drumming, and referrals to sweat lodges for mental health treatment and substance use recovery. While it covers spiritual services, such as ceremonies, rituals, and herbal remedies, state officials said Medi-Cal does not cover exorcisms.

Already, the Trump administration’s positioning has forced the state to eliminate room-and-board benefits, which is threatening local efforts to provide recovery beds.

The state is cutting short-term post-hospitalization housing, which was meant to prevent hospitals from or those at risk of homelessness onto the streets. The CalAIM service providing up to six months of temporary housing and ongoing care is ending at the close of this year. And the state is cutting recuperative care benefits, no longer paying for beds for patients to recover from illness or injury, instead offering only wraparound services.

In San Francisco, these beds have been crucial in reducing overdose deaths, helping transition homeless people off the streets and into housing, and reducing hospital bed usage, said Neal Sheran, a medical director with the city’s Department of Public Health. The city’s health plan operates a sobering center, and recuperative care facilities where patients can recover from hospitalizations.

“We’re concerned,” Sheran said. “Funding for the overnight piece of these programs is really crucial to their success.”

Cuts on the Horizon

Even without federal threats, state budget pressures have strained CalAIM financing. Newsom has proposed for social services by $68.3 million this fiscal year. The cut will deepen next year and remain at $150.2 million per year beginning in 2028.

Providers worry that Medi-Cal patients will lose access. And services, such as home-delivered meals and housing assistance, will be further restricted.

“It’s moving us back to the old days where our healthcare system is more expensive and reactive, instead of investing in prevention,” said Anwar Zoueihid, a vice president and the chief strategy officer at the Los Angeles-based Partners in Care Foundation, a CalAIM provider. “It’s contradictory to Make America Healthy Again.”

To save money, the state is tightening eligibility to limit services and . For instance, Medi-Cal patients with food insecurity would no longer be eligible for home-delivered healthy meals without a qualifying condition like diabetes. And a homeless patient would get capped at six months for help finding an apartment.

Some of the biggest providers of CalAIM say services should be continuously evaluated and curtailed if health plans were too permissive. In some cases, food and housing services were given to low-income patients who didn’t necessarily qualify as the highest-need.

“It’s important everybody takes a look with a very sober view at whether we’re truly benefiting people so we’re spending money in the right places,” said Charlie Robinson, the chief health equity officer at L.A. Care, one of the state’s largest Medi-Cal health insurers.

Dorothy Seleski, the Medi-Cal president for Health Net, said the health insurer isn’t deterred by state and federal cuts.

“Regardless of what happens at the federal level, we are committed,” she said. “This is a significant transformation of the healthcare system, and we are already seeing major reductions in avoidable emergency room trips, avoidable hospital admissions, and we’ve closed gaps in preventive care.”

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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They Harvest the Nation鈥檚 Food, but a New Rule May Strip Them of Health Insurance /insurance/agricultural-workers-medicaid-eligibility-immigration-food-harvest/ Fri, 10 Jul 2026 09:00:00 +0000 /?p=2257673 Seasonal work. Inconsistent hours. Frequent moves. Cash payments and informal jobs. For farmworkers who rely on Medicaid, these common employment patterns could put their health coverage at risk.

It’s a heightened concern for the estimated who are U.S. citizens or legal permanent residents, as new work requirements kick in for the federal-state healthcare program that serves low-income and disabled Americans.

Starting next year in most states, many adults enrolled in Medicaid will have to prove they work, are enrolled in college or vocational courses, volunteer, or do unpaid work for at least .

Advocates say this could pose a significant challenge to Medicaid-eligible farmworkers, who frequently work more than 80 hours a month during harvest season but less in other months. What’s more, outside the harvest season, many workers take on informal jobs in construction, landscaping, or home repair for which they don’t receive formal paychecks that would prove their continuing Medicaid eligibility. Still, they can establish eligibility if they prove their average monthly income over six months is equivalent to at least 80 hours of work at the federal minimum wage.

“Having a work requirement 鈥 having to create more paperwork and more proof 鈥 is certainly extremely challenging for farmworkers and others who are low-income and who may especially have seasonal jobs, not year-round, and do have periods” when there is no work available, said Alexis Guild, vice president of strategy and programs at .

New Requirements, Additional Hurdles

Agriculture is a , and Americans to put food on their tables. Nearly 60% of those workers are U.S. citizens or green-card holders, according to the . The remaining 40% lack legal status or are otherwise ineligible for Medicaid.

Even among farmworkers with citizenship or legal status, the uninsured rate is three times that of the general population, and most farmworkers with insurance are Medicaid beneficiaries, although participation rates vary by state. According to a , 71%-79% of eligible farmworker households report participation in Medicaid.

The new Medicaid work requirements were a key provision of the One Big Beautiful Bill Act signed last July by President Donald Trump. Under the federal law, and the District of Columbia must implement the requirements by Jan. 1. A few states have the work rule early.

The 80-hour rule applies in states that expanded Medicaid, a process that began in 2014 and was tied to the Affordable Care Act. Following the initial expansions, agricultural workers with legal documentation became to have health insurance, according to a 2021 article in the American Journal of Agricultural Economics.

Immigration Anxieties

The work requirements are the latest in a long list of obstacles placed between workers and the healthcare they’re legally entitled to, Guild said. “Medicaid certainly helps because it alleviates the cost issue,” she said. “But there are still other barriers, such as transportation, taking sick leave, and finding time to visit a health center. All these factors can prevent them from actually receiving medical care.”

For farmworkers with green cards and naturalized U.S. citizens, there is another source of stress: the fear that signing up for Medicaid could put personal information in the hands of immigration authorities.

That’s what worries Luis, a 45-year-old green-card holder and Medicaid recipient who dreams of becoming a U.S. citizen. Luis 鈥 who asked to be identified by only his middle name 鈥 lives with his wife and daughter in North Carolina, where he has worked in agriculture for nearly a decade.

Speaking in Spanish, he said that when he learned about the work requirements, he knew it would be challenging for him to prove that he works 80 hours a month. “I only work on farms for six or seven months; the rest of the year I work in whatever I can find,” he said.

Republicans in Congress argue that work requirements will reduce federal healthcare spending, encourage nondisabled adults to , and preserve safety net resources for the most vulnerable populations.

Among Hispanic adults enrolled in Medicaid, 67% are already working, according to a 2025 .

The Centers for Medicare & Medicaid Services did not respond to requests for comment for this article. But in June, when its “nationwide framework” to implement the Medicaid work requirements, Administrator Mehmet Oz said it would help beneficiaries “build skills and independence through work, education, job training, or community service, creating new opportunities for themselves and their families.” Federal officials say the new requirements “could reduce poverty by as much as 2.9 million people.”

Chronic Illness

Agricultural work is one of the nation’s , and it is associated with and , including respiratory conditions. A found that 37% of male farmworkers and 47% of female farmworkers in the state had at least one chronic health condition. The new work requirements present one more barrier for those seeking care, advocates said.

“People skip checkups and screenings, and conditions that could be caught early and treated cost-effectively” aren’t, said Adriana Cadena, executive director of .

Emergency rooms often become the “natural” place to go for healthcare, Cadena added. “This drives up waiting times and costs for all of us. 鈥 And when people are sick enough that they miss work, it starts a vicious cycle of lost productivity and family economic instability that again threatens all of us.”

A Loss for Families and Children

The new federal rules also require beneficiaries to verify their eligibility at least twice a year, twice as often as previously, creating another potential obstacle.

“Letters can easily be missed, and forms may go unfilled. If people get caught up in the paperwork, they could lose coverage,” said , an assistant vice president at , a nonprofit that promotes an equitable healthcare system.

For farmworkers who travel from state to state, the process can be especially difficult.

“You have to find the time to transfer your coverage and probably find a person or organization that can help you 鈥 and that can be really hard when you’re constantly moving,” Cadena said.

The situation highlights the difficulties of navigating a complex system for individuals and families already struggling to make ends meet.

“The result,” Cadena said, “could be the loss of coverage not only for workers, but also for their families and children.”

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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My 吃瓜不打烊 for a Psychiatric Bed in an Overburdened Health System /health-industry/psychiatric-bed-shortage-overburdened-health-system/ Thu, 09 Jul 2026 09:00:00 +0000 /?p=2245238

If you or someone you know may be experiencing a mental health crisis, contact the 988 Suicide & Crisis Lifeline by dialing or texting “988.”

Eight days before my 33rd birthday in April, a social worker at a crisis clinic near Denver determined I was an imminent danger to myself. She placed me on an involuntary 72-hour mental health hold.

What came next wasn’t treatment, but a search for a bed. Clinic staffers called area hospitals with inpatient psychiatric units, asking if they had available beds. They didn’t. So, I was told I had to spend the night at the clinic, which is open 24/7. I settled into a recliner, trying to make myself comfortable as my mind drifted in a blank, disassociated haze. Sleep came in brief bursts.

Since the 1950s, the United States has seen a nationwide due in part to deinstitutionalization and the rise of antipsychotics. But that has created a critical shortage for those needing help. From 2011 to 2023, the number of hospitals with inpatient psychiatric units , according to a 2025 study. Another study from that year found that this country has 28.4 inpatient psychiatric beds per 100,000 people 鈥 not even half the 60-bed ratio researchers frequently refer to as the .

The shortage has created what the American Psychiatric Association : emergency rooms overwhelmed with people suffering from severe mental health illnesses, inpatient stays prematurely shortened to speed up bed turnover, and acutely ill individuals left without critical care.

A pen-and-ink illustration shows a scene in three panels. 1 (left): A woman looks up, concerned. She then looks down at her hands, which are shaking over an intake form on a clipboard. 2 (center): An intake nurse talks to the woman, who is sitting in a chair with one leg folded over the other. 3 (right): She tries to answer a question on the form, which is obscured but hints at "why do you feel like you want to..." She scribbles out an answer and tries again. Below, she's seen nervously twirling her hair around her fingers. In the margins of the page, a thunderstorm fills the borders.
(Oona Zenda/吃瓜不打烊)

“Where are these people going?” said , an assistant health policy professor at Rutgers University, who co-authored those 2025 studies. “For people who don’t receive this care, they don’t just go away. How is it affecting them? Society? Their families?”

Meanwhile, the White House shut down the part of the national suicide hotline catering to LGBTQ+ youth, President Donald Trump’s 2027 budget proposal calls for cuts to agencies , and Health and Human Services Secretary Robert F. Kennedy Jr. recently announced a plan to .”

A Fractured System

I was already intimately familiar with the country’s fractured mental healthcare system before I was involuntarily committed. What I had yet to experience myself, I saw through my wife: waitlists, outpatient programs stretched beyond capacity, and inpatient psychiatric care so scarce that access often depends on surviving a crisis severe enough to justify it.

She died by suicide after we had separated.

As the years passed, grief and anxiety pushed me from observer to patient.

At the crisis clinic, I woke up the following morning disoriented and groggy. In the bathroom 鈥 its door deliberately unable to latch, swinging both ways so staffers could enter in case of an emergency 鈥 I stood at the sink and watched the faucet run, trying to piece together how I had ended up here.

A hand-drawn pen and ink illustration. Three panels are set up in a triptych style. 1 (left): We see a scene, through a bathroom mirror, from a memorial of the main character's wife. The wife's picture is obscured by a large flower. There's a condolence card and medical bill on the table in front of the picture frame. 2 (center): The main character's face is reflected in a bathroom mirror as she washes her hands in rushing water. 3 (right): Medical bills, legislation, and a hand holding a pill bottle are all visible in a collage. Around the three panels, water gushes down from above and floods the bottom half of the page.
(Oona Zenda/吃瓜不打烊)

America’s history of treating mental illness is long and complicated.

The 19th and 20th centuries saw the removal of people with severe mental disorders from jails and 鈥 squalid facilities designed to house the poor 鈥 to state asylums that (though they ultimately became ). From the 1860s to the 1930s, the number of psychiatric hospitals increased dramatically, according to the American Psychiatric Association, and by 1955, the number of psychiatric beds in the U.S. peaked at more than half a million.

However, owing to the development of antipsychotics, the belief that psychiatric institutions were inhumane, and President John F. Kennedy’s 1963 to free thousands of Americans from a life in institutions, many state hospitals shut down. An estimated for adults and kids are left in a country where more than 14 million experience severe mental illness each year.

Two years after JFK’s legislation passed, a new policy prohibited federal Medicaid funds from covering inpatient psychiatric care in facilities . The goal was to encourage states to move patients out of large, often substandard psychiatric institutions into community-based care settings.

The consequences of these changes, however, have been far-ranging. People with severe mental illnesses are often forced to as they wait for a bed to open. The length of stay in state psychiatric hospitals , according to research by the Treatment Advocacy Center, a national organization focused on eliminating barriers to the treatment of severe mental illness. And some people with mental illness .

From 1986 to 2014, as the behavioral health crisis intensified, mental health expenditures in the U.S. rose from $32 billion to $186 billion 鈥 though the proportion of that spending allocated to inpatient care .

This period also recorded major policy shifts affecting inpatient hospitalization rates, notably the 1999 U.S. Supreme Court decision in Olmstead v. L.C. The ruling shifted care away from psychiatric facilities by mandating states to people with developmental and mental disabilities.

“The road to hell is paved with good intentions,” said Leslie Carpenter, legislative advocacy manager at the Treatment Advocacy Center. “A lot of these bills, including the Community Mental Health Act, were really well intended and ended up with adverse consequences.”

For me, that next day at the clinic passed both painfully slowly and in a blur. A staff member I hadn’t met before told me they were still reaching out to hospitals across the region. The search for a bed continued.

A hand-drawn pen and ink illustration. Three panels are set up in a triptych style. In each, the main character is trying to figure out a comfortable way to sleep in the medical recliner. Dali-esque melting clocks float around her. Paper legislation frames the bottom of the page.
(Oona Zenda/吃瓜不打烊)

鈥楴o One Wants To Pay for Any of This Care’

Last year, members of Congress introduced two bills to change the 16-bed Medicaid funding cap at inpatient psychiatric facilities, the and the , which would increase the cap to 36 beds. Both have stalled in the House.

According to the Congressional Budget Office, a federal agency that analyzes budgetary and economic issues, eliminating the 16-bed limit would increase Medicaid expenditures from 2024 to 2033.

“No one wants to pay for any of this care that people need,” said Colorado state Sen. , a Democrat who has witnessed limitations to Colorado’s mental healthcare system firsthand because her son has schizoaffective disorder.

In lieu of federal action, states are stepping up to bridge the gaps.

Colorado, 15 other states, and Washington, D.C., now operate under waivers allowing Medicaid to fund inpatient facilities for mental health treatment, according to KFF data. Seven additional states have waivers pending. One 2025 study found that these waivers may be tied to fewer hospitalizations, emergency department visits, and incarcerations .

Yet even local efforts to improve mental healthcare face resistance. In California, Colorado, Iowa, Missouri, Nebraska, and New York, locals have pushed back against proposed psychiatric facilities for minors, claiming such facilities will worsen safety and lower property values. Behavioral health advocates have disputed these claims and argued they are rooted in stigma.

That psychiatric facility in Colorado was . The state has nearly 20 inpatient beds per 100,000 people, , according to 2022 data across all 50 states plus Washington, D.C., collected by the Treatment Advocacy Center. Wyoming ranked first with 47.3 beds per 100,000 residents, although, as the least populous state, it has only 275 total inpatient beds compared with California’s 5,703. Minnesota ranked last, with only 4.3 inpatient beds per 100,000 residents.

While increasing the number of inpatient psychiatric beds is vital, mental health advocates are also calling for , such as peer support specialists and clubhouses, where people with serious mental illnesses can learn life skills and find community.

A hand-drawn pen and ink illustration. Three panels are set up in a triptych style. 1 (left): The main character is lying in bed, discussing her mental health with a doctor who sits at her bedside. 2 (center): The main character is sleeping peacefully in a hospital bed. 3 (right), top panel: A warm handshake radiates good vibrations. Bottom panel: An empty hospital bed with a hand-written note that says "thank you" on its pillow. In the margins/borders of the page, a moon and sun radiate in the background, while new flowers bloom after the drenching storm of the previous images.
(Oona Zenda/吃瓜不打烊)

When it came time for me to use our mental health safety net, I was among the fortunate ones: At noon the day after my hold began, a bed opened at a hospital in Denver 鈥 a rare stroke of luck in a system in which many people wait days or weeks for the care they need. An ambulance transferred me to the hospital at 3 p.m., marking 21 hours into my 72-hour hold.

Two days later, on my last day at the psychiatric hospital, I stood outside the nurse’s station awaiting discharge papers.

A man I had not seen before looked at me and asked, “Are you leaving?”

“Yes,” I said. “Are you being admitted?”

“Yeah,” he responded. “This is my third time being hospitalized in a year.”

I shook his hand. “Good luck,” I said, and I walked out the door.

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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In California Governor鈥檚 Race, Voters Face Stark Choice on Immigrant Healthcare /elections/california-governor-becerra-hilton-immigrant-healthcare-medicaid-medi-cal/ Mon, 06 Jul 2026 09:00:00 +0000 /?p=2252202 For decades, Californians have generally said that immigrants, who make up of the state’s population and of its labor force, are beneficial to the state and its economy. But budget instability and concerns about rising costs are spilling into a debate over the controversial and expensive policy of allowing low-income immigrants without legal status to receive state-funded health coverage.

Now, Democrat Xavier Becerra and Republican Steve Hilton present a stark choice to voters in the race to be the next governor at a moment when public support for the state’s generous safety net is starting to fray.

Both frame the choice as an economic one.

Becerra, former secretary of Health and Human Services under President Joe Biden, has to exclude the poorest immigrants from routine care and push them into expensive emergency rooms . Hilton, a conservative commentator backed by President Donald Trump, has promised to eliminate their coverage and has echoed national Republicans who have to bolster their claims of fraud and abuse in the Medicaid program.

With voters nationwide worried about inflation and the rising cost of living, some Californians might feel less inclined to provide full healthcare coverage to those lacking legal status. What the state does next could have profound implications for its healthcare system and sprawling economy.

Over the past decade, California lawmakers used state dollars to expand Medi-Cal, offering all low-income residents comprehensive coverage regardless of immigration status. But enrollment surpassed initial projections, as did the cost. Medi-Cal coverage of immigrants without legal status costs the state roughly , according to California’s nonpartisan Legislative Analyst’s Office, more than double the initial estimates.

California lawmakers and Democratic Gov. Gavin Newsom, who , have approved major rollbacks of benefits for those residents. They said the state can’t afford ballooning healthcare costs amid massive federal cuts from the GOP tax-and-spending law known as the One Big Beautiful Bill Act; the California Health and Human Services Agency projected up to 3.4 million Medi-Cal enrollees and the state could lose more than $30 billion a year in federal funding under the law, causing major disruptions in the safety net health program.

Medi-Cal’s budget for the 2026-27 fiscal year is $217 billion, and the program serves more than 14 million Californians.

Meanwhile, many legal U.S. residents and citizens have seen their health premium payments skyrocket this year after Congress let enhanced federal Affordable Care Act subsidies expire at the end of December.

As the state grappled with a deficit last year, a majority of likely voters in California said 鈥 for the first time in nearly a decade 鈥 that they opposed providing health insurance to immigrants without legal status, by the Public Policy Institute of California.

“The state faces major challenges, and healthcare is one of the major expenditures,” said Mark Baldassare, PPIC survey director. “People have become more selective about how they want to see those limited healthcare dollars spent.”

Hilton, running on a platform of affordability and lowering taxes, has seized on the sentiment, casting health coverage for immigrants without legal status as and a to the state’s ability to help citizens.

“Stop taking money from California taxpayers who can barely afford their healthcare to give free healthcare to citizens of other countries who shouldn’t even be here,” Hilton said in a the morning of the June 2 primary.

In campaign stump speeches, to use the savings to for other Californians without detailing how. Hilton did not respond to requests from 吃瓜不打烊 for comment.

“Their messaging is very, very simple: It’s an us vs. them,” said Roger Salazar, a Democratic political consultant who represents a coalition of healthcare advocates who argue providing coverage to people who can’t afford it strengthens the workforce and, as a result, the economy. “It’s just a question of convincing the average voter that it’s much better economically.”

A son of immigrants, Becerra for decades pushed to in Congress and has made a similar pitch in his campaign for governor. He did not respond to requests for comment.

“Immigrants, whether documented or not, work hard. They pay taxes, and sometimes they get injured on the job or their children get sick,” during a debate in May. “It would be foolish to tell a family that they don’t have access to the pediatrician or the family doc.”

Becerra, who could become California’s first elected Latino governor, when Newsom and legislative leaders decided to for adults without legal status, cut benefits, and impose monthly premiums.

“Stop treating coverage as a budget variable that expands in good years and contracts when revenue dips,” Becerra wrote in May in response to an Orange County Register . He has new, steady revenue to fund basic services, such as by upping taxes on corporations and the wealthiest Californians.

In 2023, California was home to about 2.3 million people without legal status, representing of the state’s labor force, according to the . And live in a family that includes at least one member without legal status, according to the California Department of Education. Healthcare economists say giving people access to preventive healthcare saves taxpayers money in the long run by and relieving pressure on an overburdened system.

That, Baldassare said, wasn’t a hard argument to make during the covid pandemic, when immigrants were and the link between individual well-being and public health .

But Medi-Cal costs to cover roughly 1.4 million immigrants , according to the latest estimates from the Department of Health Care Services. Because only some lawfully present immigrants are eligible for federal Medicaid benefits, states like California must do so exclusively with state funding.

California’s budget experts that maintaining full Medi-Cal coverage for immigrants without seeking additional revenue would destabilize the state’s long-term fiscal outlook.

In a legislative hearing last year, Republican Assembly member Carl DeMaio questioned whether California taxpayers would prioritize the expansions, saying he doubted “illegal immigrant healthcare in the general fund would be at the top of their list.”

After lawmakers approved the spending reductions, support for immigrant health coverage dropped, Baldassare said. Democratic lawmakers and Newsom  several Medi-Cal cuts until July 2027, leaving decisions for the next governor.

David Hayes-Bautista, who has spent his career studying the economic contributions of Latinos and immigrants, said Californians without legal status and tend to work in industries and occupations that . As a result, many resort to Medi-Cal, saddling the state with the healthcare costs instead of employers.

“California, as a state, has the world’s fourth-largest GDP, which is true thanks to Latinos,” said Hayes-Bautista, director of the Center for the Study of Latino Health and Culture at UCLA. Without contributions from Latinos, many without legal status, it drops to eighth place, about the size , he added.

Immigrant advocates hope to have a more vocal champion in Becerra, the favorite to become governor in a state where Democrats outnumber Republicans nearly 2-to-1.

“He will fight, he will push back, he will do all that he can,” said state Sen. María Elena Durazo, a former labor leader who has championed the immigrant healthcare expansions. “That’s the most we could expect.”

吃瓜不打烊 is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF鈥攁n independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on 吃瓜不打烊 and is republished here under a .

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