Director Tsai outlines Medi Cal funding changes and federal Medicaid impacts on California

June 16, 2025 | San Francisco City, San Francisco County, California


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Director Tsai outlines Medi Cal funding changes and federal Medicaid impacts on California
The future of Medi-Cal is under scrutiny as San Francisco officials discuss significant changes at the federal level that could impact millions of Californians. During a recent city meeting, Director Tsai highlighted the fast-evolving landscape of Medicaid, emphasizing that recent Senate actions could lead to drastic cuts in coverage.

Medi-Cal, California's Medicaid program, currently serves over a third of the state's population, providing essential health services, including coverage for more than half of all births. However, the proposed federal legislation could result in up to 8 million individuals losing their coverage, a move that Tsai described as "devastating." The potential changes include stricter eligibility requirements and reduced funding for providers, which could severely limit access to care.

San Francisco has been operating under a two-plan model for Medi-Cal managed care since 1997, with Anthem Blue Cross and the San Francisco Health Plan serving the majority of beneficiaries. The city’s health officials are concerned that the federal changes could undermine the progress made in expanding access to care and improving health outcomes.

In response to these challenges, the city is focusing on enhancing its partnerships with health plans and community organizations to ensure that Medi-Cal beneficiaries continue to receive necessary services. Tsai noted the importance of data collection and collaboration in navigating these changes, stating, "We need each other" to effectively serve the population.

As the state prepares for a challenging renewal process for its Medicaid waiver, officials are committed to advocating for the continued transformation of Medi-Cal to ensure that coverage remains accessible for all Californians. The outcome of these federal discussions will be critical in shaping the future of healthcare in San Francisco and beyond.

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