Advertisement
Sally C. Pipes

How much would Becerra’s healthcare promises cost the state? Not even he knows

U.S. Secretary of Health and Human Services Xavier Becerra
Xavier Becerra’s agenda includes a goal to “build toward” a universal single-payer health care system in California. It doesn’t include how he’ll pay for it.
(Anna Moneymaker / Getty Images)
0:00 0:00

This is read by an automated voice. Please report any issues or inconsistencies here.

See more from the L.A. Times in Google Search. Set us as preferred

Xavier Becerra has promised to be California’s “Health Care Governor.”

Becerra’s agenda is ambitious: He wants California taxpayers to preserve public healthcare coverage threatened by federal funding cuts, maintain publicly funded care for undocumented immigrants, spend more on primary care and the healthcare workforce, and ultimately “build toward” a universal single-payer system.

Those promises may appeal to many California voters. But they come with questions Becerra has yet to answer: What will this cost, and who will pay for it?

That’s no small omission in a state already struggling to pay its bills. California’s enacted budget has an $18.5-billion operating deficit this fiscal year.

Advertisement

Healthcare is already one of the biggest pressures on the state budget. Spending on Medi-Cal has more than doubled over the past decade and is expected to eclipse $219 billion in the 2026-27 fiscal year. The program accounts for roughly 40% of total state spending.

California’s recent experience with Medi-Cal offers a warning about how quickly healthcare promises can outrun their price tags.

Over the past decade, Sacramento has gradually expanded full Medi-Cal coverage to undocumented residents, culminating in coverage for all income-eligible adults starting in 2024. In an October 2025 report, the Legislative Analyst’s Office estimated those expansions to cost roughly $10 billion annually from the general fund — “more than double the initial estimates.”

With the state facing persistent deficits, lawmakers have already begun retrenching. California froze new enrollment for undocumented adults beginning in January. And starting in July 2027, many adults aged 19 to 59 who remain enrolled in Medi-Cal will also face a $30 monthly premium.

Advertisement

Becerra proposes to move in the other direction, offering people taxpayer-funded coverage. His campaign promises to “protect existing coverage from federal rollbacks” and ensure that no Californian is left without care “regardless of income, ZIP code or immigration status.”

He argues that cracking down on Medi-Cal fraud waste and administrative inefficiency could free up money for his healthcare priorities. Those are worthwhile goals. But his campaign offers no estimate of how much those efforts would save — much less whether the savings would actually cover his new commitments.

Then there are the federal dollars disappearing from California’s healthcare system. The expiration of enhanced Obamacare subsidies in January eliminated nearly $2.5 billion in annual federal assistance for residents buying coverage through Covered California.

Sacramento has responded with state money — including $190 million for premium subsidies in 2026 and $300 million for an expanded subsidy program in 2027. Covered California acknowledges that this cannot replace the lost federal assistance.

Yet Becerra promises that on his first day in office he will direct state agencies to “maintain coverage continuity for every Californian affected by federal cuts or Medi-Cal rollbacks.”

That’s a promise with a price tag. So what is that price?

And that’s before getting to Becerra’s longtime goal: the abolition of private health insurance and the creation of a government-run, single-payer healthcare system.

Advertisement

Earlier this year, Becerra reportedly told the California Medical Assn. he would not push for state-level single-payer as governor. But his campaign site promises to “build toward” such a system — without explaining what that entails or how he would finance it.

California has studied the concept before, and the numbers are daunting. In 2022, the nonpartisan Legislative Analyst’s Office estimated that a fully operational CalCare system would cost the state between $494 billion and $552 billion annually — far more than California’s entire budget at the time.

Some of that could come from redirecting existing federal and state healthcare spending. Even so, an earlier LAO analysis concluded that a similar single-payer plan would still require new state taxes in the “low hundreds of billions of dollars” annually.

Becerra hasn’t said what new taxes he would impose, how large they would have to be or which federal funds he expects Washington to turn over. And although he has acknowledged that statewide single-payer would require federal cooperation, he hasn’t explained what California would do if Washington refuses.

Becerra is campaigning on making California more affordable. That’s why the missing numbers matter. Healthcare commitments don’t suddenly become free when the government pays for them. The cost falls somewhere — on taxpayers, employers, patients or other public priorities.

Before voters sign off on Becerra’s healthcare vision, they deserve to see the bill.

Sally C. Pipes, the president of the Pacific Research Institute and a fellow in healthcare policy, is the author of “The World’s Medicine Chest: How America Achieved Pharmaceutical Supremacy — and How to Keep It.” X: @sallypipes

Advertisement

Insights

L.A. Times Insights delivers AI-generated analysis on Voices content to offer all points of view. Insights does not appear on any news articles.

Viewpoint
This article generally aligns with a Center Right point of view. Learn more about this AI-generated analysis

Perspectives

The following AI-generated content is powered by Perplexity. The Los Angeles Times editorial staff does not create or edit the content.

Ideas expressed in the piece

  • The column argues that Becerra’s promise to protect coverage and expand publicly funded care is incomplete without a clear account of the cost and who would pay. It points to California’s budget pressures and the Legislative Analyst’s Office estimate that undocumented residents’ Medi-Cal expansions cost about $10 billion annually from the General Fund—more than twice initial estimates—as evidence that healthcare commitments can exceed early projections.[9]
  • It contends that pledges to recover money through fraud enforcement, reduced waste and administrative savings are not a substitute for a financing plan unless the campaign estimates those savings and shows they would cover the proposed commitments. Becerra’s plan identifies administrative streamlining as a goal but does not quantify expected savings.[2][4]
  • The column also argues that replacing lost federal assistance with state funds would carry a substantial price. Covered California says state subsidies cannot make up for the expired federal premium assistance, while Becerra has pledged to protect people affected by federal cuts without specifying how the state would fund that promise.[7][5]
  • On single-payer, the piece emphasizes the scale of the potential fiscal challenge: the LAO estimated a fully operational CalCare system would cost $494 billion to $552 billion annually in 2022, with new taxes needed even after redirecting existing public healthcare funds.[10] It argues that voters should know what taxes, federal cooperation and tradeoffs such a system would require before endorsing that direction.

Different views on the topic

  • Becerra’s campaign presents protecting coverage as an immediate priority, arguing that Californians should not lose healthcare because of federal cuts or changes to Medi-Cal. Its plan also calls for broader access to care, stronger primary care, lower prescription costs and changes to Medi-Cal financing to improve stability and accountability.[2]
  • Supporters of maintaining coverage argue that the fiscal debate must also weigh the consequences of people losing insurance. California coverage changes are projected to push many people off Medi-Cal, while research cited by state health reporting warns that losses could increase the number of uninsured residents and leave some people delaying care.[11][8]
  • Becerra’s position on single-payer is more qualified than a commitment to implement it immediately. Reporting on his campaign says he has emphasized immediate coverage protections while describing universal, single-payer CalCare as a longer-term goal; his campaign has also said it is not feasible under the current federal administration.[1][3]
  • State officials have used public subsidies to cushion some consumers from the expiration of enhanced federal premium tax credits. Covered California reports that its state assistance has helped hundreds of thousands of enrollees, while acknowledging it cannot replace all the expired federal aid.[6][7]

A cure for the common opinion

Get thought-provoking perspectives with our weekly newsletter.

Advertisement