New Budget Cuts Made for 2011-2012

The budget Governor Brown did propose for fiscal year 2011-12, with the tax extensions, includes the following health items:

MEDI-CAL CUTS MADE IN MARCH FOR FY2011-12:

·         Limit access to doctor visits for 7.7 million Californians including millions of low-income families, seniors, and people with disabilities and chronic illness, including:

o        Limit doctor/clinic visits to 7/year, unless certified as meeting specific criteria by a physician

·         Raise the cost of care for Medi-Cal patients, the vast majority of whom are under the poverty level and have monthly incomes below $1,000, including:

o        $100/day for a hospital stay, up to a maximum of $200.

o        $50 copayment for emergency room visits.

o        $5 copayment for doctor, clinic, dental, and pharmacy visits and prescriptions.

· Eliminate coverage for over-the-counter drugs.

·         Reduce Medi-Cal provider rates by 10%, despite California having one of the lowest Medicaid provider rates in the country, and that half of doctors already don’t take Medi-Cal coverage.

·         Eliminate Medi-Cal adult day health care, impacting 27,000 patients and 330 centers statewide–although replacing it with a scaled down program with half the funding.

HEALTHY FAMILIES CUTS MADE IN MARCH FOR FY2011-12

* Increase monthly premiums for families between 200 and 250 percent FPL by $18 per child, an increase of 75%, (with a family maximum of $126); and for families between 150-200% FPL by $14/child by nearly 100%.

* Raise emergency room co-payments from $15 to $50 and raising hospital inpatient services co-payments of $100 per day with a $200 maximum ($0.7 million).

NEW SELECTED MAY REVISE PROPOSALS FOR FY2011-12

* Shift 900,000 children from Healthy Families to Medi-Cal, which covers children for less money. The Governor’s proposal seems to maintain eligibility, benefits, and cost-sharing, but questions remain on access to providers.

* Eliminate Adult Day Health Centers (ADHCs), budgeting only $25 million for transition costs. (The state Legislature booked ADHC elimination in March, but budgeted $85 million for a replacement program.)

* Eliminate various boards, including Managed Risk Medical Insurance Board (MRMIB), California Medical Assistance Commission (CMAC), California Health Policy and Data Advisory Commission (CHPDAC), and several others. MRMIB programs–Healthy Families, Access to Infants and Mothers, two “high-risk pools” would shift to be under the Department of Health Care Services.

As always, more information is available on our website at www.health-access.org. We also live-tweet and post breaking news (like today’s announcement of the May Revise) on our Twitter feed, at www.twitter.com/healthaccess.

www.facebook.com/healthaccess, www.twitter.com/healthaccess, or:
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