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Many optional services already have been cut, several of the planned provider rate reductions can't be enacted due to court injunctions, and eligibility can't be cut. In addition, the state faces a projected budget deficit of $8 billion over the next 16 months. This is the dire situation that California's Medi-Cal program is currently facing.

Fiscal Fitness: How States Cope: California Medicaid struggles to hold on with projected $8 billion deficit