Still reeling from the disaster of wildfires, Los Angeles now faces an even greater threat to our economy if the Senate moves forward with the House-passed reconciliation bill that includes massive Medicaid cuts.
The world is watching as L.A. and its residents prepare to execute another remarkable undertaking: host the 2026 World Cup, the 2027 Super Bowl and the 2028 Olympics. Our global stage not only highlights Southern California’s cultural and economic vibrancy but also underscores the essential role of a healthy workforce in ensuring the success of these events.
As chief executive of L.A. Care Health Plan – the nation’s largest publicly operated plan, providing health coverage to more than 2.6 million Angelenos – I am deeply concerned about current federal proposals to cut Medicaid funding and the devastating consequences these cuts would have on workers, the health care system and our economy. Current federal proposals could strip California of up to $20 billion in annual Medicaid funding, further straining California’s budget challenges. If enacted, the state would be forced to significantly reduce Medicaid coverage, benefits and provider reimbursements.
Any reductions could eliminate health coverage for the 41% of Los Angeles County residents who currently rely on Medi-Cal, California’s Medicaid program. The impact would be especially severe as our region continues to recover from recent wildfires, which have displaced families, worsened air quality, increased demand for behavioral health support and deepened an already pressing budget crisis. These proposed changes directly threaten the health and stability of the very workers who power L.A.’s economy, from hospitality and transportation to retail and event services. Many of these workers depend on Medi-Cal to maintain their health and continue driving the industries that sustain L.A.
Health, jobs, economy at stake
Medi-Cal provides essential healthcare coverage to nearly 15 million Californians, including nearly one in five workers in the state. Among working adults aged 19-64, the program covers 35% of those in restaurant and food services, 21% in construction, and 26% in retail. Many of these individuals hold low-wage or part-time jobs for employers who are not able to offer health benefits, making Medi-Cal their only source of healthcare. These workers are not only crucial to our wildfire recovery efforts but are also essential to the success of L.A.’s upcoming global events. Their well-being directly impacts our regional economy, and any reduction in Medicaid funding would jeopardize their health, our workforce and our economic stability.
Beyond the workforce, our county’s fragile health care delivery system and overall economy are at stake. Medi-Cal supports nearly 800,000 healthcare-related jobs in L.A. County alone, including 122,000 in hospitals and 315,000 in ambulatory care, nursing homes and other facilities. Slashing Medicaid funding would likely lead to widespread layoffs, hospital closures and service reductions, particularly in safety net hospitals, community health centers and community hospitals – further destabilizing our county’s economy and worsening workforce shortages in an already strained healthcare system.
Medicaid is more than an economic driver: it is a lifeline and a vital safety net for children, seniors, individuals with disabilities and working families. This isn’t about politics – it’s about people’s lives. When nearly one out of every two residents in L.A. County relies on Medi-Cal, cuts don’t just hurt “them” – they hurt us. Our families. Our neighbors. Our communities.
The facts are clear: a strong Medicaid program creates jobs, strengthens families, and drives economic growth.
L.A. Care urges the Senate to change the House-passed bill by rejecting any proposals that weaken Medicaid and instead collaborate with us to strengthen it. A thriving L.A. economy relies on a healthy workforce, and Medicaid is essential to that success. We stand ready to work with policymakers to protect this vital program and uphold our shared commitment to economic opportunity and community well-being.
For the millions of Californians who depend on Medi-Cal, their health – and frankly, the backbone of the economy and our health care system – hangs in the balance.
Martha Santana-Chin is chief executive of Westlake-based L.A. Care Health Plan, the nation’s largest publicly operated health plan.
