Proposed premiums will push undocumented Californians off Medi-Cal, advocates say
Good morning and welcome to the A.M. Alert!
‘A PATH FORWARD,’ NOT PREMIUMS
Via Molly Gibbs…
Gov. Gavin Newsom’s most recent budget proposal calls for significant cuts to state-funded health care programs. Part of the proposal would freeze enrollment in 2026 for those with “unsatisfactory immigration status” and, starting in 2027, impose $100 monthly premiums on that enrollment group. In January, these individuals would no longer be eligible for long-term care and in July 2026 would lose dental coverage.
Advocates with the Health4All coalition gathered outside the Capitol Thursday before lobbying legislators to reject Newsom’s proposal, which they say undermines past efforts to provide health care for the entire state.
“They need to find a path forward, and they can lead a path forward that protects these investments and commitments that we’ve made to all Californians,” Amanda McAllister-Wallner, executive director of Health Access told the Bee. “And that is not incompatible with balancing the budget this year.”
Medi-Cal coverage was only expanded to include undocumented immigrants, who are otherwise eligible, in 2024. The federal government does not match funds for the undocumented enrollment group, meaning the coverage is completely state funded.
People who are undocumented and already enrolled in state-only Medi-Cal would not lose coverage under the proposal but would incur $100 premiums starting in 2027. If someone in this group fails to make a monthly payment they would be barred from re-enrolling.
“Most of these savings come, not from the $100 premiums that people are paying, but from the fact that they know people won’t be able to pay $100 premiums and will just lose coverage,” McAllister-Wallner said.
Executive director for the Latino Coalition for a Healthy California, Seciah Aquino, said the undocumented Californians she represents are not asking for charity.
“Our communities contribute substantially to the California economy,” Aquino said. “So, we’re not asking for a handout. We are saying this is the right thing to do.”
DON’T REGULATE OUR REGULATIONS
Voters don’t want Congress blocking states like California from enforcing regulations around artificial intelligence, which is a provision of the budget bill currently before federal lawmakers, according to a recent poll.
The vast majority of people surveyed by Common Sense Media and Echelon Insights reported they had concerns about children encountering sexualized AI-generated content on the internet. Of those surveyed, 73% wanted both the federal government and states to regulate AI.
If Congress passes the Republican-led budget bill dubbed the “Big Beautiful Bill,” states would lose the ability to put up new guardrails around the fast-evolving technology, and it would effectively nullify California’s regulations for a decade.
Though Gov. Gavin Newsom turned down lawmakers’ most ambitious efforts to regulate the new technology during last year’s legislative session, California adopted some rules about how AI can be used. This year legislators are working to add new regulations.
Nearly 60% of more than 1,000 people surveyed said they opposed including a provision blocking states’ regulatory authority in the budget bill.
“Not only does it infringe on states’ rights, it stops states from regulating AI without putting any federal protections in place, leaving families to fend for themselves against the most powerful technology of our time,” Common Sense Media CEO James Steyer said in a statement, announcing the poll results.
BRADFORD RUNS TO SUCCEED LARA
Via Rebecca-Ann Jattan…
Former state senator and assemblymember Steven Bradford announced his bid for California State insurance commissioner on Thursday, pivoting from an initial campaign for lieutenant governor.
Foregoing his run for lieutenant governor, Bradford is redirecting his efforts to garner support for the lead role at the Department of Insurance in the November 2026 election. Commissioner Ricardo Lara has reached his two-term limit, leaving the seat open for a new candidate.
Bradford, from Gardena in Los Angeles County, served in the Legislature from 2009 to 2024, where he served on the Insurance Committee.
The former California lawmaker cited “unprecedented circumstances amid California’s collapsing insurance market” and “extraordinary dynamics following the Los Angeles wildfires,” to explain the change in his political ambitions.
In a campaign announcement, Bradford said the “status quo isn’t working for consumers and businesses alike, and profound change is desperately needed to right the ship.”
His priorities include stabilizing the state’s insurance market while providing an attractive business environment and protecting Californians in the wake of natural disasters.
This comes at a time when California home owners are bracing for home insurance hikes following the Los Angeles wildfires. State Farm, one of California’s leading home insurers, is set to implement a 17% homeowner rate increase following Commissioner Lara’s emergency interim rate approval.
Through an email statement, Bradford lamented the increased rates while recognizing it as an inevitable response.
“Nobody wants to pay more for home insurance — I know I don’t. Unfortunately with wildfires growing more and more common, and climate change increasing future risks, we can’t artificially keep insurance rates too low or we won’t have any home insurance left in California. Increases like this are unfortunate, but they are likely necessary to keep our state’s insurance market functioning,” Bradford said.
The rate hike faced criticism from other lawmakers.
“The decision to grant State Farm’s unprecedented request for an emergency rate increase disregards the hardships faced by fire victims and their calls for accountability,” State Sen. Sasha Renée Pérez, D-Alhambra, said in a statement earlier this month. Some of Pérez’s constituents were victims of the Eaton Fire who complained of denied claims and complications when filing with State Farm.
Bradford said Thursday that he plans to travel statewide meeting people affected by natural disasters, insurance experts and anyone impacted by the insurance crisis. He said he will draw from other states’ existing insurance markets to inform his work if elected.
“The challenges California’s insurance market faces are many — but I am confident that the opportunities to rebuild, restructure and refortify are achievable,” Bradford said.
Other contenders have yet to announce their campaigns.
QUOTE OF THE DAY
“I have no interest in receiving GenAI-assisted or -generated Department of Finance analyses.”
— Assembly budget advisor Jason Sisney commenting, via social media, on the announcement the Finance Department has teamed up with the technology company Authorium to use artificial intelligence to “analyze the cost of bills proposed by the Legislature and their impact on the state budget.”
Best of The Bee:
▪ CA Democrats organize Trump opposition this weekend. Gavin Newsom won’t be there, via Nicole Nixon.
▪ California universities escaped steep budget cuts. Can UC avoid them entirely? Via William Melhado.
▪ Courthouse arrests ‘weaponize,’ ‘sabotage’ immigration process, advocates say, via Stephen Hobbs.
This story was updated on Friday, May 30, to include Steven Bradford’s response to a question from the Bee about his position on property insurance rate increases.
This story was originally published May 30, 2025 at 5:00 AM.
