KFF: California Faces $22B Deficit by FY2028 While Implementing Medicaid Work Requirements — 1.4M Disenrollments Expected
KFF's deep-dive shows California must implement Medicaid work requirements (affecting ~5M expansion enrollees) while managing a projected $3B deficit for FY2027 growing to $22B by FY2028. The state faces $1.4B in General Fund costs from H.R.
1, is cutting FQHC/RHC reimbursement for state-funded UIS services (July 2026), and expects 1.4M disenrollments from work requirement implementation. The $5.1B provider tax revenue loss undercuts a major state financing mechanism.
Key takeaways
- $3B FY2027 deficit growing to $22B by FY2028
- 1.4M projected disenrollments from work requirements
- $5.1B provider tax revenue loss under H.R. 1 restrictions
Primary source
KFFFQHC Talent. (2026, April 6). KFF: California Faces $22B Deficit by FY2028 While Implementing Medicaid Work Requirements — 1.4M Disenrollments Expected. Primary source: KFF. Retrieved June 12, 2026, from https://www.fqhctalent.com/intel/kff-california-22b-deficit-work-requirements-implementation
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