The last time California health insurance was in the news, it was due to Governor Arnold Schwarzenegger's attempts to establish a universal health care system, attempts that ultimately failed to pass into law.

But now, Schwarzenegger's ties to California health insurance seem to have reversed themselves, as he seeks to cut $1.1 billion from the state's spending on Medi-Cal (California's Medicaid program).

As it's reported by Kaiser's Daily Health Policy Reports, the same health care groups that once supported Schwarzenegger's $15 billion health coverage expansion plan have now banded together into a coalition to protest his proposed budget for fiscal year 2009.

One of the ways that he plans to fill the $17 billion dollar budgetary hole facing the state is to cut back on Medicare spending, a move that critics argue will lead to 1 million more uninsured people in the state, bringing the total to "7.5 million over three years."

The governor's office argues that the budget reflects what a difficult year is facing California right now, and that Schwarzenegger is still dedicated to a California health insurance plan that offers affordable coverage to all state citizens.