Medi-Cal Payments for Clinics on Hold During State Budget Stalemate

As early as next week, more than 1,000 health centers and community clinics across California will stop receiving Medi-Cal reimbursements until the state passes a budget package, the Sacramento Bee reports. Medi-Cal is California's Medicaid program.

After California started its new fiscal year on July 1 without a budget in place, many health centers started obtaining Medi-Cal payments from the $2 billion Medical Providers Interim Payment fund. The reserve funds were expected to run out yesterday.

Many community clinics receive about 50% to 80% of their total revenue from Medi-Cal payments. Advocates say the delayed payments are likely to add further strain to health centers and could lead to clinic closures.

Affected Health Care Providers

Health programs affected by the suspended Medi-Cal payments include:

• Adult day health care centers;
• Home health agencies; and
• No-cost clinics (Van Oot, Sacramento Bee, 8/20).

A full list of programs that will not receive Medi-Cal reimbursements during the budget impasse is available from the Sacramento Bee's "Capitol Alert" (Van Oot, "Capitol Alert," Sacramento Bee, 8/19).

Nursing homes and hospitals will continue to receive Medi-Cal payments, as mandated under state law and the 2009 federal economic stimulus package (Sacramento Bee, 8/20).

Broadcast Coverage

On Thursday, Capitol Public Radio's "KXJZ News" reported on the suspension of Medi-Cal funds for California clinics (Sepulvado, "KXJZ News," Capitol Public Radio, 8/19).