California health and labor advocates are opposing Governor Gavin Newsom’s plan to eliminate in-home nursing and care assistance for undocumented immigrants in the state’s budget. This proposal comes as a result of the massive $73 billion deficit that California is facing, which has been reduced to $7 billion.
California’s In-Home Supportive Services (IHSS) offers essential in-home care and support to elderly and disabled individuals. This program provides up to 283 hours per month of assistance with various tasks, including bathing, dressing, housework, and meal preparation. In a significant development, the governor has proposed a budget of $9 billion for IHSS in fiscal year 2024-2025, marking a $1 billion increase from the previous year.
According to the nonpartisan Legislative Analyst’s Office, beneficiaries of IHSS are responsible for hiring and supervising a paid IHSS provider, often a family member or relative. The estimated cost for this service is $17.95 per hour. This underscores the critical role played by family members in ensuring the well-being of their loved ones while also highlighting the financial implications associated with this responsibility.
Starting in January of this year, Medi-Cal was expanded to provide coverage for all illegal immigrants. However, under the governor’s proposed cuts, access to IHHS coverage provided through Medi-Cal would be dropped, while most other Medi-Cal services would still be available to these individuals.
The left-leaning California Budget and Policy Center expressed their opposition to the governor’s proposal, stating that it is both harmful and xenophobic. They are concerned that this proposal may push immigrant families further into poverty and potentially increase state spending on nursing home care in the long run.
According to the Los Angeles Times, the California Department of Social Services, the governing body for IHHS, has revealed that only 3,000 undocumented immigrants have been granted authorization for the IHHS program. Additionally, out of those authorized individuals, 1,500 are currently receiving benefits from the program.
State leaders in California are working towards expanding Medi-Cal to include all residents, but this effort is facing challenges due to a shortage of doctors and care providers. As a result, beneficiaries of the system are struggling to find healthcare professionals who can treat them.
California is set to extend Medi-Cal coverage to all undocumented immigrants aged 26 to 50, which is estimated to benefit around 700,000 individuals. Despite the state’s budget crisis, Newsom remains committed to funding the program expansion, which comes with a price tag of $3.4 billion annually.
“We are committed to ensuring that everyone has access to healthcare, regardless of their ability to pay, pre-existing conditions, or immigration status,” stated Governor Newsom in his updated May budget proposal.
By 2030, it is estimated that one in four Californians will be 60 years or older. This demographic shift presents a significant challenge as the costs for programs like IHHS and other services for elderly Californians are expected to rise. The concern arises from the fact that there will be relatively fewer workers contributing taxes to fund these programs. As a result, experts are questioning the sustainability of this situation, particularly due to the decline in births leading to a smaller pool of future workers.
According to government and pension finance expert and former state Sen. John Moorlach, when a significant number of people leave the state and stop generating personal income taxes, and when the real estate market starts to level off and decline, it can have an impact on state and local revenues. He stated earlier this year, “Cuts are going to have to be made to this affected demographic group of seniors and welfare – that’s the obvious first cut.”
