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Fact check: How much Medicaid was paid towards undocumented aliens in California in 2024?

Checked on June 11, 2025

1. Summary of the results

The exact amount spent on Medicaid for undocumented immigrants in California varies by source, but most recent analyses indicate a figure of approximately $9.5 billion for fiscal year 2024-2025 [1] [2]. This is significantly higher than the original budget estimate of $3 billion [2]. Earlier in 2024, Medi-Cal spent around $6.4 billion covering approximately 1.5 million undocumented immigrants [3].

2. Missing context/alternative viewpoints

Several important contextual points need to be considered:

  • California became the first state in the U.S. to offer healthcare coverage to all income-eligible residents regardless of immigration status [4]
  • The increased costs are attributed to:
    • Higher-than-anticipated enrollment
    • Increased pharmacy costs [1]
    • Higher illegal immigration numbers during the Biden administration [2]

  • The state has had to take out a $3.4 billion loan to cover Medi-Cal expenditures through March 2024 [1]
  • Historical context shows that in 2018-2019, California improperly claimed $52.7 million in federal Medicaid reimbursement by using outdated calculation methods [5]
  • 3. Potential misinformation/bias in the original statement

    The question itself is oversimplified and could lead to misunderstanding of the complex situation. Different stakeholders present varying narratives:

    • Progressive perspective: This represents an expansion of healthcare coverage to all residents regardless of status [3]
    • Critical perspective: Some sources characterize it as a "money laundering scheme" to obtain federal funds [2]
    • Financial perspective: The California Department of Finance focuses on technical aspects like enrollment numbers and pharmacy costs [1]

    It's worth noting that different political groups benefit from different interpretations:

    • Democrats who supported the expansion must justify the higher-than-expected costs [1]
    • Critics of immigration policies use the cost overruns to challenge the program's viability [2]
    • Healthcare providers and pharmaceutical companies benefit from the expanded coverage regardless of the political debate
    Want to dive deeper?
    What services does California's Emergency Medicaid cover for undocumented immigrants?
    How does California's Medicaid spending on undocumented immigrants compare to other states?
    What is the total California Medicaid budget breakdown by recipient category in 2024?
    How has California's policy on Medicaid coverage for undocumented immigrants changed over time?
    What are the eligibility requirements for undocumented immigrants to receive Medicaid in California?