New Medi-Cal regulations proposed by President Bush would cost California $10.8 billion in federal healthcare funding over the next five years, a national consumer group reported Friday.

The proposed changes, which would affect more than 6 million Californians who receive healthcare through Medi-Cal, "would cause enormous harm both to the beneficiaries and to the state economy," said Ron Pollack, executive director of Families USA.

The House of Representatives voted 349-62 on Wednesday to block the regulations from taking effect. The bipartisan opposition would be sufficient to override a threatened presidential veto in the House, but it is not yet clear how the Senate will vote.

The California delegation strongly supported the moratorium, which would delay new regulations until after a new president has taken office in 2009. Only four of the state's 53 members of Congress voted against the moratorium. Among those in support were Reps. Lois Capps, D-Santa Barbara, and Elton Gallegly, R-Simi Valley.

Gov. Arnold Schwarzenegger said the bipartisan vote will help "to protect medical services for vulnerable Californians and reimbursements to safety net and teaching hospitals."

The proposed regulations would reduce federal funds for outpatient hospital services, management of chronic diseases and other services.

If the changes were implemented, they would put California and other states in a bind. They would either have to drop coverage for those services or pay for them entirely with state funds. The Medi-Cal program is a combined federal-state program in which states match the federal money dollar for dollar.

"These are regulations that would take us backwards," said Anthony Wright, executive director of the California healthcare advocacy group Health Access. "A very large percentage of Californians relies on Medi-Cal for basic coverage."

The Families USA study estimates the proposed cutbacks would have substantial impact on the state economy by eliminating billions in federal healthcare spending. The cuts would result in an additional $5.4 billion loss in business activity and would eliminate 46,700 jobs, the study estimates.

The proposed federal cutbacks come at the same time California is considering Medi-Cal spending reductions on its own as a means of closing the state's $9 billion budget shortfall. Schwarzenegger has proposed reducing by 10 percent the amount paid to reimburse doctors and hospitals for services and eliminating such optional benefits as dental care.

Wright called the combined effect of the proposed federal and state cutbacks "a one-two punch to California patients. We can't allow this to happen."