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Medical Daily
Medical Daily
Dorothy Brooks

LA County Health Services Braces for $700M Crisis After Medi-Cal Rollback Hits 200,000 Residents

LA County Health Services Braces for $700M Crisis After Medi-Cal Rollback Hits 200,000 Residents

Since H.R. 1 — the "One Big Beautiful Bill Act" — was signed into law in 2025, the largest county in the United States has been absorbing a healthcare shock of historic proportions. More than 200,000 Los Angeles County residents have been disenrolled from full-scope Medi-Cal coverage as a direct result of federal funding cuts, according to reporting by Our Weekly, translating to approximately 1,100 people per day losing health coverage. One in every five people who lost coverage is estimated to be a child. And that figure — staggering as it is — is only the beginning of what federal law and state budget pressures are expected to extract from LA County's healthcare safety net over the next several years.

On May 28, 2026, the County of Los Angeles made it official: LA Health Services announced it is undergoing strategic service relocations as a direct response to what the county calls an "unprecedented budget crisis." The combined impact of changes to Medicaid and Medi-Cal is expected to reduce LA Health Services' budget by over $700 million by 2029. That is not a rounding error — it is the equivalent of shutting down multiple major hospital departments or eliminating the healthcare access of hundreds of thousands of residents who have nowhere else to go.

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