What’s happening on health care in California in 2026?

The mounting cost of providing health care to millions of Californians is shaping up to be a top issue for state lawmakers in 2026. Deep federal cuts to the state’s Medi-Cal program could force lawmakers to make tough decisions about benefits and eligibility for more than 15 million enrollees and payments to the doctors who see them.

Lawmakers are also grappling with emerging artificial intelligence issues, the high cost of pharmaceuticals and the state’s continuing mental health crisis. 

CalMatters health team:

Quick Facts

  • Budget: State spending on health care is increasing, driven largely by increased enrollment and usage particularly among seniors. In 2025, lawmakers approved more than $6 billion in additional spending due to growth.
  • Medi-Cal: More than a third of the population — about 15 million residents — are on Medi-Cal, also known as Medicaid, the insurance program for low income people.
  • Federal impact: Policy changes to Medicaid and the Affordable Care Act will result in millions of Californians losing health coverage. An estimated 2 million enrollees are expected to drop Medi-Cal and 400,000 Obamacare enrollees are expected to drop marketplace coverage.
  • Insurance: California is 1 of 5 states that penalizes residents for not having health insurance.

Health Care Bills

In Focus

Here are all of the bills related health care that are being considered this years. Highlighted bills are identified by CalMatters as among the most significant this year.

SB 1422 In Progress
Headshot of Maria Elena Durazo
María Elena Durazo

This bill would make undocumented immigrants, 19 or older, eligible for the full scope of Medi-Cal benefits.

AB 2729 In Progress
Headshot of Mia Bonta
Mia Bonta

This bill would establish the "Employer Responsibility for Medi-Cal Trust Fund" and require large employers whose workers rely on Medi-Cal for health insurance to contribute to that fund.

AB 1923 In Progress
Headshot of Esmeralda Soria
Esmeralda Soria

This bill would create a 300 million dollar "Distressed Hospital Loan Program Fund" for hospitals in financial distress.

SB 1146 In Progress
Headshot of Lena Gonzalez
Lena Gonzalez

This bill would prohibit using artificial intelligence to create misleading advertising around health care products and services.

SB 895
California Science and Health Research Bond Act.

Committee: Senate Standing Committee on Health

In Progress
California Science and Health Research Bond Act.Committee: Senate Standing Committee on Health
AB 1876
Health care coverage: nondiscrimination.

Committee: Assembly Standing Committee on Health

In Progress
Health care coverage: nondiscrimination.Committee: Assembly Standing Committee on Health
AB 96
Mental health services: peer support specialist certification.

Committee: Assembly Standing Committee on Health

In Progress
Mental health services: peer support specialist certification.Committee: Assembly Standing Committee on Health
AB 1672
Medi-Cal: Program of All-Inclusive Care for the Elderly: rates.

Committee: Assembly Standing Committee on Health

In Progress
Medi-Cal: Program of All-Inclusive Care for the Elderly: rates.Committee: Assembly Standing Committee on Health
AB 1126
Medi-Cal managed care plans: enrollees with other health care coverage.

Committee: Assembly Standing Committee on Health

In Progress
Medi-Cal managed care plans: enrollees with other health care coverage.Committee: Assembly Standing Committee on Health
SB 1047
Neurodegenerative disease registry program.

Committee: Senate Standing Committee on Health

In Progress
Neurodegenerative disease registry program.Committee: Senate Standing Committee on Health
View All

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