State Lawmakers Criticize Davis Plan To Eliminate $2B in Funds for Health Care Programs, -AND- Davis Releases Plan for $10.2B in Reductions to Health and Other Programs

CAL/AAEM News Service pottsbri@yahoo.com
Fri, 13 Dec 2002 13:53:07 -0800 (PST)


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From: California Healthline [mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM] 

State Lawmakers Criticize Davis Plan To Eliminate $2B in Funds for Health Care Programs 

12/10/2002 

California lawmakers met yesterday in a special session to begin discussions on a plan to eliminate $10.2 billion -- which includes $2 billion for health care programs -- from this year's and next year's state budgets to help cover an estimated $21 billion deficit, the http://www.latimes.com/news/local/la-mbudget10dec10,0,7233003.story?coll=la%2Dheadlines%2Dcalifornia Los Angeles Times reports (Halper/Moran, Los Angeles Times, 12/10). The plan, announced on Friday by Gov. Gray Davis (D), includes budget reductions for Medi-Cal. Under the plan, the state would reduce income eligibility limits for Medi-Cal to 61% of the federal poverty level. The plan also would require Medi-Cal beneficiaries to reverify their eligibility each quarter rather than each year. In addition, the plan would eliminate optional Medi-Cal benefits, such as dental care and medical supplies. The plan also would reduce Medi-Cal reimbursement to physicians and other providers by 10% ( http://www.californiah!
ealthline.org/members/basecontent.asp?contentid=47447&collectionid=3&contentarea=19570 California Healthline, 12/9). 

Move To 'Blunt' Reductions? 

In the session yesterday, some lawmakers said they would move to "blunt" proposed budget reductions for health care programs, the Times reports. Many Democrats and some Republicans said that they may propose tax increases on alcohol, cigarettes and new health insurance policies to help cover the state budget deficit and decrease reductions for health care and other programs. Some lawmakers also said that they could ask voters to approve ballot measures to increase taxes "given the depth of the current budget problem and the magnitude" of the proposed reductions for health care and other programs, the Times reports. For example, Los Angeles County voters last month approved Measure B, which will raise property taxes to fund trauma care centers and emergency rooms. Assembly Health Committee Chair Dario Frommer (D-Los Angeles) said, "Health care is on everybody's mind right now. This may be the issue that we build a coalition around, do a revenue increase, and address policy." !
He added, "We're obviously not accepting the cuts. We may decide to cut somewhere else" (Los Angeles Times, 12/10). Lawmakers said that they will not take action on the proposed $10.2 billion budget reduction until after Jan. 10, when Davis will announce his fiscal year 2003-2004 budget plan. However, Assembly Speaker Herb Wesson (D-Los Angeles) said he plans to hold informal hearings on the proposed budget reductions next week (Gladstone, <http://www.bayarea.com/mld/mercurynews/news/local/4706123.htm> San Jose Mercury News, 12/10). 

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From: California Healthline [mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM] 

Davis Releases Plan for $10.2B in Reductions to Health and Other Programs To Cover Budget Shortfall 

12/09/2002

Gov. Gray Davis (D) on Friday proposed $10.2 billion in cuts in state spending, including cuts in health care programs, as part of an effort to cover an expected $21 billion budget deficit, the <http://www.latimes.com/news/printedition/la-me-cuts7dec07001437.story> Los Angeles Times reports (Jones, Los Angeles Times, 12/7). While cuts to education were the greatest of the proposal, health and human services spending cuts were the "second-biggest target" of Davis' plan (Morain, <http://www.latimes.com/news/local/la-me-budget9dec09.story> Los Angeles Times, 12/9). Davis' proposed cuts to health care programs include the following: 

* Medi-Cal eligibility: Income eligibility limits would be reduced to 61% of the federal poverty level (LaMar, <http://www.bayarea.com/mld/cctimes/news/4688552.htm> Contra Costa Times, 12/7). The change would reduce the eligibility level from $18,000 a year for a family of four to $12,000. The state would save $6.2 million in the fourth quarter and $118 million next year with the change. More than 200,000 beneficiaries would lose their coverage.

* Reverification: Medi-Cal beneficiaries would be required to reverify their eligibility quarterly rather than every year, for an expected savings of $5 million this fiscal year and $85 in the next fiscal year.

* Medi-Cal benefits: The plan calls for the elimination of optional Medi-Cal benefits, including dental care and medical supplies such as syringes and testing strips for diabetics, catheters and rubber sheets.

* Medi-Cal reimbursements: Davis' plan calls for a 10% cut in Medi-Cal payments to physicians and other providers, including nursing homes (Los Angeles Times, 12/9). Hospitals and federally qualified health centers would not be subject to the reimbursement decreases.

The proposal did not include cuts in services for children enrolled in Medi-Cal and Healthy Families. Overall, Davis' plan would reduce Medi-Cal spending by a total of $167.4 million (Los Angeles Times, 12/7). "These budget cuts are severe by any measure," Davis said. "Enacting these cuts in midyear will be an extraordinarily difficult task, but we face an extraordinary challenge," he added (Contra Costa Times, 12/7).

Reaction 

Legislators will meet in a special session today to begin deliberations on Davis' proposal. While the governor wants lawmakers to "act quickly" on his plan, several lawmakers said they wanted to wait until Davis releases his 2003-2004 fiscal year budget proposal before voting on any of the spending cuts (Gledhill, http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/\12/08/BA1752.DTL San Francisco Chronicle, 12/8). Lawmakers differ on how to cover the budget deficit. Most Republicans favor covering the shortfall entirely with spending cuts, but many Democrats support also raising taxes. Many advocates criticized the cuts. Jim Hard of the California State Employees Association Local 1000 said that instead of the cuts, the state should increase the income tax rate for the richest state residents. "These solutions are far better than undermining services for seniors, children, persons with disabilities, the sick and the poor," he said (LaMar/Kleffman, <http://!
www.bayarea.com/mld/cctimes/4699848.htm> Contra Costa Times, 12/9). Pat McGinnis, executive director of California Advocates for Nursing Home Reform, said the cut could endanger patient care. "Where do you make [the 10% reimbursement rate cut] up? You make it up by increasing the private payment rates ... and by not taking as many Medi-Cal patients," McGinnis said (Los Angeles Times, 12/9). According to the <http://www.nytimes.com/2002/12/09/national/09CALI.html> New York Times, the budget cuts that Davis announced on Friday "serve as a prelude to even deeper cuts" in the budget for the fiscal year that begins next July (Broder, New York Times, 12/9). 


Brian Potts
Managing Editor, CAL/AAEM News Service
MS-IV, UC Irvine
MD/MBA candidate
pottsbri@yahoo.com


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<FONT size=2>
<P>From: California Healthline [</FONT><A href="mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM"><U><FONT color=#0000ff size=2>mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM</U></FONT></A><FONT size=2>] </P>
<P>State Lawmakers Criticize Davis Plan To Eliminate $2B in Funds for Health Care Programs </P>
<P>12/10/2002 </P>
<P>California lawmakers met yesterday in a special session to begin discussions on a plan to eliminate $10.2 billion -- which includes $2 billion for health care programs -- from this year's and next year's state budgets to help cover an estimated $21 billion deficit, the </FONT><A href="http://www.latimes.com/news/local/la-me-budget10dec10,0,7233003.story?c"><U><FONT color=#0000ff size=2><A href="http://www.latimes.com/news/local/la-mbudget10dec10,0,7233003.story?coll=la%2Dheadlines%2Dcalifornia">http://www.latimes.com/news/local/la-mbudget10dec10,0,7233003.story?c</U></FONT></A><FONT size=2>oll=la%2Dheadlines%2Dcalifornia</A> Los Angeles Times reports (Halper/Moran, Los Angeles Times, 12/10). The plan, announced on Friday by Gov. Gray Davis (D), includes budget reductions for Medi-Cal. Under the plan, the state would reduce income eligibility limits for Medi-Cal to 61% of the federal poverty level. The plan also would require Medi-Cal beneficiaries to reverify their eligib!
ility each quarter rather than each year. In addition, the plan would eliminate optional Medi-Cal benefits, such as dental care and medical supplies. The plan also would reduce Medi-Cal reimbursement to physicians and other providers by 10% ( </FONT><A href="http://www.californiahealthline.org/members/basecontent.asp?contentid=4"><U><FONT color=#0000ff size=2><A href="http://www.californiahealthline.org/members/basecontent.asp?contentid=47447&amp;collectionid=3&amp;contentarea=19570">http://www.californiahealthline.org/members/basecontent.asp?contentid=4</U></FONT></A><FONT size=2>7447&amp;collectionid=3&amp;contentarea=19570</A> California Healthline, 12/9). </P>
<P>Move To 'Blunt' Reductions? </P>
<P>In the session yesterday, some lawmakers said they would move to "blunt" proposed budget reductions for health care programs, the Times reports. Many Democrats and some Republicans said that they may propose tax increases on alcohol, cigarettes and new health insurance policies to help cover the state budget deficit and decrease reductions for health care and other programs. Some lawmakers also said that they could ask voters to approve ballot measures to increase taxes "given the depth of the current budget problem and the magnitude" of the proposed reductions for health care and other programs, the Times reports. For example, Los Angeles County voters last month approved Measure B, which will raise property taxes to fund trauma care centers and emergency rooms. Assembly Health Committee Chair Dario Frommer (D-Los Angeles) said, "Health care is on everybody's mind right now. This may be the issue that we build a coalition around, do a revenue increase, and address policy!
." He added, "We're obviously not accepting the cuts. We may decide to cut somewhere else" (Los Angeles Times, 12/10). Lawmakers said that they will not take action on the proposed $10.2 billion budget reduction until after Jan. 10, when Davis will announce his fiscal year 2003-2004 budget plan. However, Assembly Speaker Herb Wesson (D-Los Angeles) said he plans to hold informal hearings on the proposed budget reductions next week (Gladstone, &lt;</FONT><A href="http://www.bayarea.com/mld/mercurynews/news/local/4706123.htm"><U><FONT color=#0000ff size=2>http://www.bayarea.com/mld/mercurynews/news/local/4706123.htm</U></FONT></A><FONT size=2>&gt; San Jose Mercury News, 12/10). </FONT></P>
<P><FONT size=2>----------------------------------------------------------------------</FONT><FONT size=2><FONT size=2></P>
<P>From: California Healthline [</FONT><A href="mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM"><U><FONT color=#0000ff size=2>mailto:CALIFORNIAHEALTHLINE@ADVISORY.COM</U></FONT></A><FONT size=2>] </P>
<P>Davis Releases Plan for $10.2B in Reductions to Health and Other Programs To Cover Budget Shortfall </P>
<P>12/09/2002</P>
<P>Gov. Gray Davis (D) on Friday proposed $10.2 billion in cuts in state spending, including cuts in health care programs, as part of an effort to cover an expected $21 billion budget deficit, the &lt;</FONT><A href="http://www.latimes.com/news/printedition/la-me-cuts7dec07001437.story"><U><FONT color=#0000ff size=2>http://www.latimes.com/news/printedition/la-me-cuts7dec07001437.story</U></FONT></A><FONT size=2>&gt; Los Angeles Times reports (Jones, Los Angeles Times, 12/7). While cuts to education were the greatest of the proposal, health and human services spending cuts were the "second-biggest target" of Davis' plan (Morain, &lt;</FONT><A href="http://www.latimes.com/news/local/la-me-budget9dec09.story"><U><FONT color=#0000ff size=2>http://www.latimes.com/news/local/la-me-budget9dec09.story</U></FONT></A><FONT size=2>&gt; Los Angeles Times, 12/9). Davis' proposed cuts to health care programs include the following: </P>
<P>* Medi-Cal eligibility: Income eligibility limits would be reduced to 61% of the federal poverty level (LaMar, &lt;</FONT><A href="http://www.bayarea.com/mld/cctimes/news/4688552.htm"><U><FONT color=#0000ff size=2>http://www.bayarea.com/mld/cctimes/news/4688552.htm</U></FONT></A><FONT size=2>&gt; Contra Costa Times, 12/7). The change would reduce the eligibility level from $18,000 a year for a family of four to $12,000. The state would save $6.2 million in the fourth quarter and $118 million next year with the change. More than 200,000 beneficiaries would lose their coverage.</P>
<P>* Reverification: Medi-Cal beneficiaries would be required to reverify their eligibility quarterly rather than every year, for an expected savings of $5 million this fiscal year and $85 in the next fiscal year.</P>
<P>* Medi-Cal benefits: The plan calls for the elimination of optional Medi-Cal benefits, including dental care and medical supplies such as syringes and testing strips for diabetics, catheters and rubber sheets.</P>
<P>* Medi-Cal reimbursements: Davis' plan calls for a 10% cut in Medi-Cal payments to physicians and other providers, including nursing homes (Los Angeles Times, 12/9). Hospitals and federally qualified health centers would not be subject to the reimbursement decreases.</P>
<P>The proposal did not include cuts in services for children enrolled in Medi-Cal and Healthy Families. Overall, Davis' plan would reduce Medi-Cal spending by a total of $167.4 million (Los Angeles Times, 12/7). "These budget cuts are severe by any measure," Davis said. "Enacting these cuts in midyear will be an extraordinarily difficult task, but we face an extraordinary challenge," he added (Contra Costa Times, 12/7).</P>
<P>Reaction </P>
<P>Legislators will meet in a special session today to begin deliberations on Davis' proposal. While the governor wants lawmakers to "act quickly" on his plan, several lawmakers said they wanted to wait until Davis releases his 2003-2004 fiscal year budget proposal before voting on any of the spending cuts (Gledhill, </FONT><A href="http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/"><U><FONT color=#0000ff size=2><A href="http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/\12/08/BA1752.DTL">http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/</U></FONT></A><FONT size=2>\12/08/BA1752.DTL</A> San Francisco Chronicle, 12/8). Lawmakers differ on how to cover the budget deficit. Most Republicans favor covering the shortfall entirely with spending cuts, but many Democrats support also raising taxes. Many advocates criticized the cuts. Jim Hard of the California State Employees Association Local 1000 said that instead of t!
he cuts, the state should increase the income tax rate for the richest state residents. "These solutions are far better than undermining services for seniors, children, persons with disabilities, the sick and the poor," he said (LaMar/Kleffman, &lt;</FONT><A href="http://www.bayarea.com/mld/cctimes/4699848.htm"><U><FONT color=#0000ff size=2>http://www.bayarea.com/mld/cctimes/4699848.htm</U></FONT></A><FONT size=2>&gt; Contra Costa Times, 12/9). Pat McGinnis, executive director of California Advocates for Nursing Home Reform, said the cut could endanger patient care. "Where do you make [the 10% reimbursement rate cut] up? You make it up by increasing the private payment rates ... and by not taking as many Medi-Cal patients," McGinnis said (Los Angeles Times, 12/9). According to the &lt;</FONT><A href="http://www.nytimes.com/2002/12/09/national/09CALI.html"><U><FONT color=#0000ff size=2>http://www.nytimes.com/2002/12/09/national/09CALI.html</U></FONT></A><FONT size=2>&gt; New !
York Times, the budget cuts that Davis announced on Friday "serve as a prelude to even deeper cuts" in the budget for the fiscal year that begins next July (Broder, New York Times, 12/9). </P></FONT></FONT><BR><BR>Brian Potts<br>Managing Editor, CAL/AAEM News Service<br>MS-IV, UC Irvine<br>MD/MBA candidate<br>pottsbri@yahoo.com<p><br><hr size=1>Do you Yahoo!?<br>
<a href="http://rd.yahoo.com/mail/mailsig/*http://mailplus.yahoo.com">Yahoo! Mail Plus</a> - Powerful. Affordable. <a href="http://rd.yahoo.com/mail/mailsig/*http://mailplus.yahoo.com">Sign up now</a>
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