The independent Legislative Analyst's Office says lawmakers should start preparing for a possible loss of federal funding for low-income children's health care.
Over a million kids in the Medi-Cal program next fiscal year will have health care partially funded through the federal Children's Health Insurance Program or CHIP.
But the LAO says that funding is only secure until September of 2015. Even if Congress renews the funding, the program will likely disappear eventually.
Amber Didier of the LAO says the state has two options for continuing the children's health coverage.
"If the population was transferred to subsidized coverage through Covered Claifornia, it's possible that some children may lose coverage under the so-called 'family glitch' in the ACA," says Didier. "Some of the children currently covered in the CHIP program would not be eligible for subsidies."
Didier says the other option would be for kids to stay in Medi-Cal, but that would mean the state would lose up to 300 million dollars in federal funding.