Short-Term Cuts, Long-Term Costs: Investing in Health Care for All Californians

March 20, 2026

When all Californians — regardless of race, age, disability, or immigration status — have access to affordable and comprehensive health care, the entire state benefits through overall improved health and well-being, stronger communities, and reduced long-term costs.

California had made significant advances toward providing health care for all, but recent federal and state cuts to health care access and eligibility threaten to leave millions without coverage. Additionally, as part of his 2026-27 budget, the governor is proposing additional cuts that will restrict immigrants’ access to comprehensive, affordable health care. State leaders should restore and maintain access to Medi-Cal — California’s Medicaid program — for all Californians regardless of immigration status so that everyone can have the care they need to survive.

Preventive Care Is More Affordable Than Emergency Care, Universal Coverage Can Save California Money

Routine check-ups, screenings, and other preventive services help catch and address health issues before they become serious and more expensive to treat, research shows. For example, managing high blood pressure with medication and regular doctor visits is less costly than treating a stroke or heart failure. Investing in prevention keeps people healthier, improves their quality of life, and prevents bigger health issues later in life. Preventive health care also helps reduce emergency department visit rates, resulting in better care for all hospital patients.

When people lack health coverage, they may be forced to delay or forego care until their health worsens. For example, research shows that people who do not have health coverage are less likely to receive treatment for chronic health conditions and more likely to report a poor health status. This can worsen health conditions, which are more expensive to treat and, in turn, raise costs for hospitals, health care providers, and the state. People delaying care until health issues worsen costs California’s health care system billions of dollars every year, likely outweighing the costs of providing care to all. Those dollars could be better spent on funding health care for those who lack essential coverage.

Join us in Sacramento on April 22, 2026 for engaging sessions, workshops, and networking opportunities with fellow changemakers, inspiring speakers, and much more.

Providing People with Comprehensive Health Coverage Leads to Better Health and Community Well-Being

In 2016, California expanded Medi-Cal to cover all children up to age 18, regardless of immigration status. Data show that this expansion meaningfully improved children’s health. The proportion of non-citizen children who reported being in excellent health after the expansion increased by 10 percentage points. This suggests that increasing access to health care improves health status.

In addition to improved health, when people have access to health care, they are more likely to avoid medical debt and contribute fully to their families, workplaces, and communities. This helps strengthen the public health system, keeps the community safer, helps ensure a healthy and strong workforce, and lowers poverty in the state. New research shows that California’s health care programs help keep people out of poverty by providing critical health care and could also help reduce poverty for families.

The Health Care System Works Better When Everyone — Including Immigrants — Is Covered

When more people have access to care, the entire health system and state benefits. A growing body of research links Medicaid expansion with reduced mortality rates. Current efforts to strip many immigrants of their health coverage undermines the health care system as a whole and cuts off access to essential services to people who are vital members of the state and its communities and make meaningful contributions to the state’s robust economy.

Undocumented Californians paid nearly $8.5 billion in state and local taxes in 2022, despite being excluded from most public benefits. Denying many immigrants access to health care while the state benefits from their labor and tax payments is inequitable and harms the overall health care system.

Providing health care to all is a worthwhile investment that will significantly improve the lives of all Californians. If current cuts remain in place, state leaders will prioritize short-term savings at the expense of long-term gains in the state’s overall social and financial well-being.  Ensuring broad access to Medi-Cal improves lives, protects public health, is good for the economy, and builds a healthier California for everyone.

  

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