Haris Ashley
Governor Gavin Newsom of California has signed a series of bills that will affect the medical industry in various ways. One bill, SB-1061, targets the impact of medical debt on consumers by prohibiting its inclusion in credit reports and giving individuals more time to address their medical bills before debt collection. Newsom has also signed bills to lower prescription drug costs, eliminate copays in jails, and improve access to HIV prevention drugs and abortion medication. While Newsom has extended Medi-Cal coverage to undocumented immigrants, his administration has faced scrutiny for missing a deadline to increase payments to doctors and health care facilities treating low-income patients.
| Characteristics | Values |
|---|---|
| Medical debt | Medical debt will no longer be included on consumers' credit reports, and the bill also prohibits using any medical debt listed on a credit report as a negative factor when making credit decisions. |
| Vaccinations | State public health officials have the authority to review and revoke questionable medical exemptions for childhood vaccinations. |
| Prescription drug costs | The state attorney general can go after pharmaceutical companies that engage in "pay for delay," where generic manufacturers are paid off to keep lower-cost generic versions of brand-name drugs off the market. |
| HIV prevention | People can access HIV prevention drugs from pharmacies without a doctor's prescription. |
| Dialysis | The private-insurance reimbursement rate that dialysis companies receive for patients who get assistance from groups will be limited. |
| Incarcerated individuals | County jails and state prisons are prohibited from charging inmates copays for medical and dental services. |
| Fertility preservation | Californians undergoing cancer treatment will have insurance coverage for fertility preservation treatments. |
| Single-payer healthcare | Newsom has not implemented a single-payer system, instead opting for universal coverage. |
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What You'll Learn
Governor Newsom's bill to tackle medical debt
Under this new law, medical debt will no longer appear on consumers' credit reports in California. This means that individuals will not be penalized for seeking necessary medical care and will have more time to address their medical bills before debt collection and reporting actions can occur. The bill also prohibits using any medical debt listed on a credit report as a factor when making credit decisions.
The inclusion of medical debt on credit reports has had a devastating impact on consumers, making it difficult for individuals to secure loans, housing, or even employment. This has led to a situation where people delay or forgo essential medical care due to the fear of debt, as witnessed by nurses across the state. According to a 2022 report by the Consumer Financial Protection Bureau (CFPB), more than $88 billion in medical bills are currently included in credit reports, and these debts can remain on the reports for up to seven years, even if they are paid off.
The bill to tackle medical debt is part of a package of consumer protection bills signed by Governor Newsom, which also address overdraft fees, unfair subscription practices, and unfair banking practices. These bills aim to increase transparency and accountability across industries and provide relief to Californians facing financial challenges.
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Newsom's stance on single-payer healthcare
During his 2018 campaign for governor, Gavin Newsom pledged to create a single-payer system for California, making the state the sole supplier of coverage. He gained the support of single-payer advocates, including the California Nurses Association, who toured the state with a bus featuring Newsom's face and the words: "Nurses Trust Newsom. He shares our values and fights for our patients."
However, once elected, Newsom did little to implement the promise. Instead, he extended Medi-Cal coverage incrementally to undocumented immigrants and others lacking private or public coverage. In 2022, Newsom unveiled a new state budget, crowing about California becoming the first state to embrace universal health care coverage. His budget would accomplish that goal by extending state Medi-Cal coverage to undocumented immigrants of all ages, beginning in 2024.
On the other hand, Newsom's plan for universal coverage has faced massive opposition from employers and much of the medical industry. Single-payer would require the federal government to give the state the $200 billion-plus it spends on Californians' healthcare and the state to raise taxes by more than $150 billion a year. With this opposition and the political and financial challenges of implementing a single-payer system, it is unclear if Newsom will be able to deliver on his pledge.
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Newsom's expansion of Medi-Cal access
Governor Gavin Newsom has been a vocal supporter of universal health care coverage for California. In 2019, under his leadership, California became the first state to extend Medi-Cal coverage to all eligible undocumented young adults up to the age of 26. This was an incremental step in his plan to expand health care access to all Californians, regardless of immigration status. Newsom's proposal aimed to provide a full expansion of Medi-Cal to all eligible Californians, including an estimated 764,000 undocumented immigrants.
In April 2025, Newsom signed a $2.8 billion bailout to address the state's deficit in California's Medicaid program, which had surpassed projections due to the expansion to include illegal immigrants. This bailout was intended to keep the program running through June for approximately 15 million Californians, including non-citizens. However, Republicans maintained their opposition, claiming that the current Medicaid program is unsustainable with the inclusion of illegal immigrants.
Newsom's plan to expand health care access also includes a focus on reproductive health care services. The California Blueprint proposes increasing flexibility for Medi-Cal providers to offer clinically appropriate medication abortion services. Additionally, scholarships and loan repayments will be provided to healthcare providers committed to offering reproductive health care services.
Overall, Newsom's expansion of Medi-Cal access is a significant component of his vision for universal health care coverage in California. While it has faced criticism and challenges, the administration maintains its commitment to ensuring healthcare accessibility for all residents, including those without permanent legal status.
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Newsom's bill on prescription drug costs
Governor Gavin Newsom has signed a series of bills aimed at lowering prescription drug costs for Californians. In his first act as California’s 40th Governor, Newsom signed an executive order to create the nation's biggest single-purchaser system for prescription drugs, allowing the state to negotiate prescription drug prices with big drug companies. This was followed by the signing of AB 824, which bans "pay-for-delay" agreements between brand-name and generic drug manufacturers, preventing them from blocking the development of generic drug competition and keeping cheaper generic drugs off the market.
Newsom has also proposed the creation of Cal Rx, a state-sponsored generic drug label, which would increase competition in the generic drug marketplace and help address drug shortages. This proposal was brought closer to reality with the signing of SB 852, which directs the California Health and Human Services Agency (CHHS) to develop manufacturing partnerships to produce or distribute generic prescription drugs, making essential medications more affordable and accessible.
In addition to lowering prescription drug costs, Newsom has also introduced bills to improve access to healthcare for all Californians. This includes extending Medi-Cal coverage to undocumented immigrants and young adults, providing insurance coverage for fertility preservation treatments for cancer patients, and allowing access to HIV prevention drugs without a doctor's prescription. Newsom has also targeted the financial strain of medical debt, signing a bill to exclude it from consumers' credit reports and prohibiting its use as a negative factor in credit decisions.
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Newsom's bill on vaccination exemptions
Governor Gavin Newsom of California has been at the centre of controversy regarding his handling of a vaccine exemption bill. The bill, SB 276, would give the state more oversight of vaccine medical exemptions for schoolchildren. Newsom initially expressed support for the bill, but later requested amendments, causing confusion and protests from anti-vaccine activists. Newsom eventually signed the bill, along with a companion measure, SB 714, which clarified the implementation of the bill and protected current medical exemptions in certain cases.
The bill seeks to prevent doctors from issuing fraudulent medical exemptions for vaccines. It allows the California Department of Public Health to develop a standard medical exemption form for doctors, which will be submitted to a statewide database. Public health officials will review doctors' exemptions if they have issued more than five in a year or if they are in school districts with low immunization rates. The bill also clarifies that doctors penalized by medical boards for immunization-related concerns will not be able to issue any more exemptions until their probation is lifted.
Supporters of the bill argue that it will protect public health and ensure that all parties involved, including parents, doctors, and school administrators, understand the rules regarding vaccine exemptions. They believe that the bill will close a loophole that has been exploited by "unscrupulous physicians" selling exemptions, leading to a decrease in school vaccination rates.
Critics of the bill, including organizations like Advocates for Physicians' Rights, argue that the amendments do not fix the underlying issues. They believe that the bill will place doctors under unnecessary scrutiny and that the focus should be on grandfathering in existing exemptions rather than creating new restrictions.
Newsom defended his handling of the bill, stating that he wanted to make sure it was implemented effectively and that it reflected his values. He expressed his support for vaccines and clarified that no one in his leadership team or family had requested a medical exemption. Despite the controversy, Newsom signed the bill into law, making California one of the leading states in safeguarding children and communities from vaccine-preventable diseases.
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Frequently asked questions
Governor Newsom pledged to create a single-payer system for California during his 2018 campaign. However, he has since been criticized for doing very little to implement this promise.
Governor Newsom signed Senate Bill 1061, which will prohibit the appearance of medical debt on California consumer credit reports. This law will ensure that people are not penalized for the high costs of necessary healthcare.
Governor Newsom has signed a bill limiting the private-insurance reimbursement rate that dialysis companies receive for patients who get assistance from groups, such as the American Kidney Fund.
Governor Newsom has settled for universal health care coverage, despite criticism that he is backing away from his pledge for a single-payer system. He has extended state Medi-Cal coverage to undocumented immigrants of all ages.
Governor Newsom has proposed extending Medi-Cal coverage to all income-eligible immigrants, regardless of their legal status. However, his administration missed a federal deadline to increase payments to doctors treating low-income patients through Proposition 35, a ballot measure that allocates money from a health insurance tax to boost doctor payments.
