A new report finds California could see a significant increase in Medi-Cal coverage at "minimal" cost to the state. Medi-Cal is the state's version of Medicaid, health insurance largely for the poor. In the new study from researchers at UC Berkeley and UCLA, analysts report that 1.4 million California adults under 65 will be newly eligible for Medi-Cal. The Affordable Care Act says the federal government will pay 100 percent of the costs of these new enrollees from 2014 to 2016 and no less than 90 percent of the cost after that.
In addition, the implementation of the ACA is expected to bring many people already eligible for Medi-Cal into the fold. The state will pay a greater share of the costs for those people.
Altogether, analysts project that from 2014 to 2016, California will incur additional annual costs between $188 million and $471 million. But at the same time, billions of dollars will flow into the state, paying the overwhelming majority of total costs for the newly enrolled and those already eligible.
"This is a really great opportunity for California to enroll and offer coverage to over a million people at a very low cost to the state," said Laurel Lucia, lead author of the study and a policy analyst at the UC Berkeley Center for Labor Research and Education.
And those billions of dollars will lead to additional jobs in California, she says. "Those federal dollars will create jobs in the health care system and those health care workers will spend money in the community."