Press release

LHPC Statement on Gov. Newsom’s 2023-24 Budget Proposal

SACRAMENTO, CA — Following the release of Governor Newsom’s proposed 2023-24 state budget, Local Health Plans of California CEO Linnea Koopmans released the following statement:

“Under Gov. Newsom’s leadership, the state has launched new, innovative Medi-Cal initiatives and expansions that are reversing historic disparities that prevented far too many people from accessing high quality health care. Through ongoing support for Medi-Cal’s transformation under CalAIM, Gov. Newsom has demonstrated the State’s commitment to protecting California’s most vulnerable populations. In the coming months, local health plans look forward to working closely with the Administration and Legislature on the details of the proposed MCO tax renewal and the new investments in CalAIM.”

Gov. Newsom’s budget proposal includes $138.9 billion in 2023-24 for Medi-Cal, an increase of $6.4 billion in the General Fund compared to revised 2022-23 expenditures. The proposal maintains robust funding to cover approximately 14.4 million Californians in 2023-24. LHPC’s member plans currently serve 9.3 million enrollees, about 70% of all Medi-Cal managed care beneficiaries.

New and ongoing funding for Medi-Cal services includes:

  • Over $11 billion for community-based behavioral health services, including $3.5 billion over five years for CalAIM’s Behavioral Health Community-Based Continuum Demonstration that provides mental health services to children and youth, those experiencing or at risk of homelessness, and justice-involved individuals
  • $646 million in federal funding over a 4-year period that will go toward the Providing Access and Transforming Health and CalAIM Justice Initiative
  • $22.7 million in 2023-24 and $57.1 million ongoing funding for primary care and obstetric care provider increases
  • $17.9 million in 2025-26 for a new transitional rent community support under CalAIM

About LHPC

Local Health Plans of California (LHPC) is a statewide trade association that represents all 16 of the community-based, not-for-profit health plans that provide access to critical and comprehensive healthcare services for low-income populations enrolled in California’s Medicaid program, “Medi-Cal,” in 36 out of 58 counties in the state. With over 9.3 million enrollees, our plans serve approximately 70 percent of all Medi-Cal managed care beneficiaries. LHPC member plans cover more lives than 49 other states’ entire Medicaid programs. More here.

Media Contact:
Alexandra Angel
(916) 225-1598