Legislative Committees Take First Step Towards Revoking Medi-Cal Budget Cuts; Resolution Still a Long Way off
[Posted 06/09/08]

On May 30, the full Senate Budget Committee and the Assembly Budget Subcommittee on Health and Human Services met to take action on the Governor’s May budget revision proposals.  After months of CMA’s legislative, grassroots, and media advocacy, the Senate and Assembly took steps to stop the 10 percent Medi-Cal reimbursement rate cut scheduled to take effect July 1.

The Assembly subcommittee voted to restore all but $54.2 million of the 10 percent cut, with the major caveat that resources must be available. The $54.2 million was carved out for public hospital funding restoration. The Subcommittee’s action will be considered by the full Assembly Budget Committee in the coming weeks.

The full Senate Budget Committee voted to restore half of the 10 percent cut, effectively making it a 5 percent cut. CMA reminded the committee that Medi-Cal reimbursement rates are cut annually in real terms, as the cost of providing care goes up and rates remain stagnant.

Assuming the full Assembly Committee adopts the subcommittee recommendation, the Medi-Cal reimbursement rate issue will go to conference committee where the Senate and Assembly reconcile any differences before sending a single budget proposal to the Governor for signature.

While we were encouraged that the Senate and Assembly are reconsidering their previous action to slash Medi-Cal rates by 10 percent, the battle is far from over.  CMA’s lawsuit to stop the rate cut is still an essential part of the fight. It is unclear how the Senate and Assembly will resolve their difference in restoring the rate cut, whether resources will be available to support the restoration, and whether the Governor will sign a budget that restores the cuts. Even if agreement is eventually reached, it is extremely unlikely that there will be a budget agreement before the rate cuts go into effect July 1.

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