# Cortese: Why are California taxpayers paying the health care bills of trillion-dollar corporations?

> Source: <https://www.mercurynews.com/2026/07/08/cortese-why-are-california-taxpayers-paying-the-health-care-bills-of-trillion-dollar-corporations/>
> Published: 2026-07-08 10:45:19+00:00

**Getting your**

[Trinity Audio](//trinityaudio.ai)player ready...Did you know that California taxpayers are paying millions of dollars each year to provide health care for employees of some of the wealthiest corporations in the world?

Think about that for a moment.

A cashier, warehouse worker, caregiver, food service employee or retail clerk works full time for a company worth hundreds of billions — or even trillions — of dollars. Yet because their wages are too low or employer-sponsored coverage is unaffordable, they qualify for Medi-Cal. The health care costs for those employees don’t disappear. They are simply shifted onto the backs of California taxpayers.

That was wrong before Trump’s Republican-controlled Congress passed H.R. 1, aka the “One Big Beautiful Bill Act.” Now, It’s even more unsustainable.

When my colleagues and I first reviewed H.R. 1, we recognized what it would mean for California. We began calling for a Fair Share contribution from the state’s largest employers because we knew Washington was preparing to shift an unprecedented financial burden onto states.

Now that burden has arrived.

H.R. 1 contains roughly $1 trillion in federal health care cuts nationwide, shifting enormous costs onto states that have stepped up to protect working families. California alone is expected to shoulder as much as $28 billion in new costs. Among the systems most at risk are Los Angeles County and Santa Clara Valley Healthcare, two of the nation’s largest public health care providers and indispensable safety nets for millions of Californians.

These aren’t just numbers on a balance sheet. They represent emergency rooms, trauma centers, community clinics, maternity care, behavioral health services and lifesaving treatment that families depend on every day.

This week, the Legislature took an important first step by approving a state budget that directs the governor’s administration to return with a comprehensive blueprint for implementing a Fair Share contribution. That blueprint should answer the questions Californians deserve to have answered.

How many employees of California’s largest corporations currently rely on Medi-Cal? Which corporations are shifting the greatest health care costs onto taxpayers? How can we fairly calculate each employer’s responsibility? And how should the billions generated through a Fair Share contribution be invested to strengthen California’s health care system?

These are questions of accountability.

Let’s also be clear about what the Fair Share proposal is and is not.

It is not a tax on small businesses. It is not directed at neighborhood restaurants, family-owned companies or local franchise owners. It focuses only on California’s largest corporations — roughly the top 0.2% to 2% of employers, generally those with 500 or more employees. Small and medium-sized businesses are explicitly exempt.

The goal is simple: If taxpayers are paying for the health care of employees working for some of the wealthiest corporations in the world, those corporations should contribute toward the public system their workforce depends on.

A Fair Share contribution could generate an estimated $8 billion to $12 billion annually. Those funds should be dedicated to preserving Medi-Cal, strengthening public hospitals and community clinics, reducing health care costs over the long term and protecting Californians from the devastating consequences of federal cost shifts.

This isn’t about punishing success. California welcomes businesses that invest in good jobs and provide quality benefits.

But taxpayers should not be subsidizing corporate labor costs while Washington walks away from its commitments.

The question before us isn’t whether California can afford a Fair Share contribution.

The question is whether we can continue asking working families to subsidize some of the richest corporations on Earth while the health care safety net they depend on is being dismantled.

I believe Californians already know the answer.

*State Sen. Dave Cortese represents District 15, which encompasses a large portion of Santa Clara County, including San Jose, Morgan Hill, Gilroy and San Martin. He previously served on the Santa Clara County Board of Supervisors and the San Jose City Council.*