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.

AB 1540
988 Suicide & Crisis Lifeline: LGBTQ+ youth.

Committee: Assembly Standing Committee on Health

In Progress
988 Suicide & Crisis Lifeline: LGBTQ+ youth.Committee: Assembly Standing Committee on Health
AB 1671
Rural medical services grant program.

Committee: Assembly Standing Committee on Health

In Progress
Rural medical services grant program.Committee: Assembly 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 1629
Dental coverage.

Committee: Assembly Standing Committee on Health

In Progress
Dental coverage. Committee: Assembly Standing Committee on Health
View All

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