California's Budget Revision Misses Funding For Continuous Medi-Cal Coverage For Young Children

A coalition of leading health and children's advocacy organizations has voiced their concern over the absence of funding in the May revision of the 2024-2025 state budget for a crucial health coverage policy for California's youngest residents. The group, which includes Children Now, First 5 Association of California, March of Dimes, Maternal and Child Health Access, National Health Law Program, The Children’s Partnership, and Western Center on Law and Poverty, is calling on the legislature to secure funding to continue Medi-Cal coverage for children ages 0 to 5 through the state's multi-year continuous enrollment (MYCE) policy.

In a significant move during the 2022-2023 budget, California became one of the first states to implement MYCE for young children, allowing them to maintain their Medi-Cal coverage without annual redeterminations. This policy is aimed at eliminating the risk of coverage loss due to administrative barriers. However, for this policy to be preserved starting January 2025, it is imperative that funding is allocated in the final 2024-2025 budget. This step is crucial to ensure the California Department of Health Care Services can implement the necessary measures for continuous coverage.

The urgency of funding this policy stems from the potential risk of facing a new administration that might not approve the federal request necessary for its continuation. This period represents a critical opportunity to safeguard Medi-Cal coverage for young children in California. Without this funding, there is a risk that more children will lose their health coverage in future years, especially as other states like Oregon, Washington, Minnesota, New Mexico, North Carolina, Arizona, Hawaii, and Pennsylvania are adopting similar policies.

Recent data highlights the vulnerability of young Californians to losing Medi-Cal coverage. From June 2023 through February 2024, over 80,500 children aged six and under were discontinued from Medi-Cal coverage as the state began unwinding COVID-19-related continuous coverage protections. A significant number of these children remain eligible for Medi-Cal but were discontinued due to procedural reasons.

Continuous Medi-Cal coverage has been instrumental in advancing health equity among young Californians. Notably, three-fourths of children covered by Medi-Cal are children of color, with Medi-Cal serving as the primary source of coverage for Latine and Black children in California. The pandemic has disproportionately impacted communities of color, with Latine enrollees being particularly vulnerable to losing their Medi-Cal coverage during annual renewals.

The benefits of continuous coverage extend beyond maintaining insurance rates; it has been crucial in ensuring access to essential healthcare services like vaccinations and early developmental screenings. Moreover, safeguarding Medi-Cal coverage during the critical first five years can significantly influence a child's developmental trajectory.

Despite facing a state budget shortfall that necessitates prioritizing existing investments, the coalition argues that preserving multi-year continuous Medi-Cal coverage aligns with this objective. It not only fulfills an existing obligation towards Medi-Cal children but also supports their healthy development and upholds state investments in early childhood development and mental health.

The coalition remains committed to working with state partners to ensure the timely implementation of this vital policy. They emphasize that preserving children’s Medi-Cal coverage through funding MYCE is essential for maintaining the health and development of California’s youngest residents.