Governor Schwarzenegger’s Budget Proposal Includes Deep Medi-Cal Cuts
[Posted 01/18/08]

Governor Schwarzenegger's proposed 2008-2009 budget would cut $1.1 billion in state funds from Medi-Cal, California's health care program for low-income families. These cuts would cost California an additional $1 billion in additional federal matching funds, resulting in more than $2 billion taken away from health care for California’s low-income families.

“We appreciate the Governor’s budget predicament, but California cannot afford to leave $1 billion in federal dollars on the table when we are facing a budget shortfall,” says CMA President Richard S. Frankenstein, M.D. “It is inconsistent to talk about expanding health care coverage for low-income families at the same time we are cutting Medi-Cal rates.”

CMA vigorously opposes any cuts to the state’s already low Medi-Cal rates. Slashing payments that go towards providing health care to the poor will only exacerbate the health care crisis in California. Fewer Medi-Cal dollars will mean less access to doctors for low-income families, more patients in emergency rooms, and higher health care costs for everyone.

The Medi-Cal reductions are largely the result of a 10 percent provider reimbursement rate cut and elimination of certain “optional” benefits in the Governor’s proposed budget. There were no changes to Medi-Cal eligibility.

Contact: Lisa Folberg, 916/444-5532 or lfolberg@cmanet.org.