Medicaid Reform or Medicaid Waiver
Governor Newsom’s May Revision to the California 2025-2026 State Budget
Kassie Williams June 9, 2025
On May 14, Governor Newsom released the May revision to the initial 2025-2026 California budget proposal that was released in January. The May Revise proposes a total expenditure of $321.9 billion, representing a $300 million decrease from the January estimate. Despite a projected surplus in the January budget, changing national economic conditions and increased expenditure growth (especially in Medi-Cal) have resulted in a $12 billion deficit in the updated budget. In 2024, the budget’s $45 billion deficit was anticipated to take two years to balance, but in January, following hopeful […]
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The Source Roundup: April 2025 Edition
Kassie Williams April 1, 2025
Market Consolidation and Merger Review The Forgotten Anti-Monopoly Law: The Second Half of Clayton Act Section 7 (Texas Law Review) Robert H Lande, John M Newman, Rebecca Kelly Slaughter The authors of this article analyze the second prong of Section 7 of the Clayton Act, which prohibits mergers that “tend to create a monopoly.” In comparison to the well-known first prong that seeks to “substantially lessen competition,” the second prong is posited to wield more statutory power as it does not contain a requirement for a certain degree of harm […]
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Governor Newsom’s Healthcare Budget Proposal for 2025-26
Dilani Logan, Student Fellow February 7, 2025
On January 10, 2025, Governor Newsom released his proposed California state budget for the 2025-26 term. Following last year’s $46 billion budget shortfall, the Governor’s new budget looked quite different this year. Specifically, the budget had no deficits, reporting a projected surplus of $363 million due to the state’s prediction that it will collect almost $17 billion more in revenue than was originally planned. In fact, this year is slated to go down as California’s second-largest state spending plan ever, at a value of almost $322 billion. Overview of the […]
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Governor Newsom’s Healthcare Budget Proposal for 2024-25
Dilani Logan, Student Fellow January 22, 2024
On January 10, 2024, Governor Gavin Newsom released his proposed California state budget for 2024-2025. In a year where the state was expected to struggle financially, the Legislative Analyst’s Office had originally predicted that the budget deficit could extend upwards of $68 billion due to 2023’s seven month tax filing extension, steep stock market declines, and economic dampening from the Federal Reserve’s interest rate hikes. However, to the surprise of many, the released budget projected a significantly smaller budgetary shortfall at $38 billon. The Governor announced plans to close this […]
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Healthy California for All Commission Releases Report on Strategies to Implement Unified Financing Single-Payer System
Robin Davison, Senior Health Policy Researcher August 12, 2022
The Healthy California for All Commission, established in 2019 through Senate Bill 104, was created to advance efforts towards a health care system that delivers affordable, equitable, accessible, high quality health care for all Californians through a unified financing system. Two of the Commission recommendations have already been implemented this year. First, with the expansion of Medi-Cal eligibility to all adults between the ages of 26-49 regardless of immigration status, all California residents are now eligible for the full scope of Medi-Cal benefits. Second, the state passed legislation that established […]
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Innovations in State Medicaid Programs to Control Prescription Drug Costs
Katie Gudiksen, Senior Health Policy Researcher March 7, 2019
Medicaid serves nearly one in five Americans, including many with chronic conditions, and purchases about 10% of total prescription medications dispensed in the U.S.[1] From 2013 to 2016, Medicaid’s nationwide drug spending increased almost 50%, from $22.4 billion to $33.4 billion.[2] Medicaid programs consume an increasing percentage of state budgets and threaten to overtake funding for other programs like education and infrastructure.[3] In 2018, the National Association of State Budget Officers (NASBO) estimated that Medicaid accounted for nearly 30% of total state spending and is the fastest growing component of […]
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Update on Massachusetts’ Waiver Request to use a Drug Formulary for Medicaid
Katie Gudiksen, Senior Health Policy Researcher July 9, 2018
On June 27, 2018, the Centers for Medicaid and Medicare Services (CMS) denied Massachusetts’ request to implement a closed drug formulary in its Medicaid program. In a previous post, the Source described the request and explained why it has the potential to save the state millions of dollars every year. In denying the request, CMS said that it would consider the waiver if Massachusetts no longer used the federal Medicaid Drug Rebate Program in which manufacturers give the state rebates when the state purchases a drug to ensure that Medicaid […]
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