California needs $3.4B loan to cover healthcare costs as state provides insurance to undocumented residents

SACRAMENTO, Calif. — Gov. Gavin Newsom's Department of Finance on Wednesday notified state lawmakers that California will need a $3.44 billion loan to cover costs associated with the state's Medicaid program known as Medi-Cal. The letter did not specify why exactly the program fell short on funds. While experts note there are many factors that go into Medicaid costs, some are pointing to the money the state spends providing health insurance to undocumented people.