Medi-Cal

Latest California Healthline Stories

Budget Revision May Bring Medi-Cal Expansion to a Head

With no detailed plan in place three months after the governor and Legislature agreed to expand Medi-Cal, health care advocates are proposing a compromise deal for dividing $1.4 billion a year in expected savings. The governor’s revised budget — due next week — might bring the issue to a head.

Compromise Proposed for Medi-Cal Expansion

A new plan is expected to be unveiled today offering a compromise approach to the state’s optional Medi-Cal expansion.

Health Access California, a not-for-profit health advocacy organization came up with the plan as a bridge between the state’s rough outline in the budget for two choices — a state-administered or county-administered approach.

More than one million Californians will be newly eligible for Medi-Cal under the optional expansion to those people making up to 138% of federal poverty level. The federal government will pay 100% of expansion costs for the first three years, and 90% thereafter.

Medi-Cal Outreach Gets Big Boost

If the state won’t pay for it, one private donor will. The California Endowment yesterday committed $26.5 million to fund the state’s Medi-Cal expansion outreach under the Affordable Care Act.

The Assembly Budget Subcommittee on Human Services yesterday voted unanimously 3-0 to accept the contribution and directed state officials to apply for federal matching funds for a total of $53 million in outreach money.

“The success or failure of Obamacare will depend on how many will enroll,” said Daniel Zingale, senior vice president for the Endowment. “In this state, it’s enormously challenging. … We have more uninsured here than many other states have people.”

Committee Votes To Repeal Medi-Cal Cut

Assembly member Luis Alejo (D-Watsonville) got a grand total of seven seconds to speak at Tuesday’s Assembly Committee on Health hearing before he was interrupted.

“AB 900 eliminates the 10% Medi-Cal reimbursement rate cuts for all Medi-Cal providers … ” Alejo started to say.

“Move the bill,” said committee member Roger Hernández (D-West Covina). And before Alejo could speak again: “Second!” said Assembly member V. Manuel Pérez (D-Coachella).

That set the tone at Tuesday’s hearing, which saw a unanimous, bipartisan approval of Alejo’s bill.

Managing Medi-Cal With Enrollment Up, Spending Down

We asked legislators, state officials and consumer advocates how California should manage Medi-Cal with enrollment going up by millions next year and reimbursements going down perhaps by as much as 10%.

Bill Aims To Reverse 10% Provider Rate Reduction

Assembly member Luis Alejo (D-Salinas) yesterday said he wants to undo the 10% Medi-Cal provider reimbursement rate cut passed by the Legislature in 2011. The across-the-board reductions were challenged in a lawsuit still pending in federal court and have not taken effect.

California lawmakers in 2011 faced a huge budget shortfall, and this particular cut was made to save the state an estimated $50 million a month, health officials say. Physicians and other providers of Medi-Cal services have been leery of this further reduction, when California already ranks near the bottom in the nation in Medicaid reimbursement rates.

Alejo said he will expand AB 900 — a bill originally designed to reverse rate reductions to one small group of providers — to include all providers affected by the 2011 cut. That includes physicians, pharmacists, hospitals and ambulance services, he said.

“We want to really take a step back and look at the 10% cut to all providers,” Alejo said. “Medi-Cal providers in California already have some of the lowest rates in the country. We are ranked 47th in the nation right now, even before that cut.”

Competition Spurs Northern Expansion in San Diego

Health care providers are expanding their reach in San Diego’s wealthier northern communities as declining reimbursements and changes to the delivery system under the Affordable Care Act alter the economic environment for health care.

Medi-Cal Cut Could Force Some Rural Hospitals To Close Nursing Units

Medi-Cal providers are anxiously waiting to see if federal courts uphold a 10% reimbursement cut. Some skilled nursing facilities face even deeper cuts that might be enough to put some rural hospitals out of business.