(California) Legislature Approves $316 Million in Health Care Cuts
CAL/AAEM News Service
pottsbri@yahoo.com
Sat, 10 May 2003 20:59:42 -0700 (PDT)
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-----Original Message-----
From: cma_alert@cmanews.org [mailto:cma_alert@cmanews.org]
Sent: Friday, May 02, 2003 3:03 PM
Legislature Approves $316 Million in Health Care Cuts
The state Senate and Assembly yesterday passed a package of bills that will cut $3.6 billion from the state's record budget deficit, which has been estimated at as much as $34 billion over the next 18 months. Though $316 million of the legislature's proposed cuts will come from health care, CMA has thus far been successful at keeping Medi-Cal physician reimbursement, optional Medi-Cal benefits, and Medi-Cal eligibility off the chopping block.
The proposed health care cuts would lower Denti-Cal spending by eliminating the requirement that dentists x-ray children's teeth before filling cavities and by using different, less expensive materials for adult crowns. The proposal would reduce the amount of money counties get from the state for Medi-Cal administration. The proposal would also limit outreach programs for Medi-Cal and Healthy Families and reduce eligibility by requiring enrollees to submit semi-annual eligibility updates (right now they are only required to submit updates annually).
Earlier this year, the governor had proposed a quarterly reporting requirement, which some sources estimate would add 250,000 people to the uninsured ranks. The number of enrollees who will drop out of Medi-cal as a result of the semi-annual reporting requirement proposed by the legislature remains to be seen. It will be less than it would have been had the legislature went with the governor's proposed quarterly requirement.
A breakdown of just how much of the $316 million each of these cuts represents was not available at press time.
More than half of the plan's $3.6 billion in savings comes from a plan to use a bond instead of cash to make the state's annual contribution to employee retirement accounts. The bipartisan deal was spurred on by a May 5th deadline to approve the bond. If lawmakers don't get these bills to the Governor for his signature by Monday, the state will have to use cash from the general fund to pay a $650 million pension payment due in October. The Governor is expected to sign the bills.
The CMA along with a coalition of more than 70 consumer, patient, and provider advocacy groups will continue to fight to stop the Governor's proposed $2.7 billion in Medi-Cal cuts. Governor Davis will revise his budget proposal on May 15 after the Department of Finance has seen the state's updated income report. The proposal is expected to contain almost $2 billion in further cuts or tax increases. Stay tuned to future issues of CMA's Budget Watch for more information.
Brian Potts
Managing Editor, CAL/AAEM News Service
MS-IV, UC-Irvine
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<P>-----Original Message-----</P>
<P>From: cma_alert@cmanews.org [</FONT><A href="mailto:cma_alert@cmanews.org"><U><FONT color=#0000ff size=2>mailto:cma_alert@cmanews.org</U></FONT></A><FONT size=2>] </P>
<P>Sent: Friday, May 02, 2003 3:03 PM </P>
<P>Legislature Approves $316 Million in Health Care Cuts</P>
<P>The state Senate and Assembly yesterday passed a package of bills that will cut $3.6 billion from the state's record budget deficit, which has been estimated at as much as $34 billion over the next 18 months. Though $316 million of the legislature's proposed cuts will come from health care, CMA has thus far been successful at keeping Medi-Cal physician reimbursement, optional Medi-Cal benefits, and Medi-Cal eligibility off the chopping block.</P>
<P>The proposed health care cuts would lower Denti-Cal spending by eliminating the requirement that dentists x-ray children's teeth before filling cavities and by using different, less expensive materials for adult crowns. The proposal would reduce the amount of money counties get from the state for Medi-Cal administration. The proposal would also limit outreach programs for Medi-Cal and Healthy Families and reduce eligibility by requiring enrollees to submit semi-annual eligibility updates (right now they are only required to submit updates annually). </P>
<P>Earlier this year, the governor had proposed a quarterly reporting requirement, which some sources estimate would add 250,000 people to the uninsured ranks. The number of enrollees who will drop out of Medi-cal as a result of the semi-annual reporting requirement proposed by the legislature remains to be seen. It will be less than it would have been had the legislature went with the governor's proposed quarterly requirement.</P>
<P>A breakdown of just how much of the $316 million each of these cuts represents was not available at press time. </P>
<P>More than half of the plan's $3.6 billion in savings comes from a plan to use a bond instead of cash to make the state's annual contribution to employee retirement accounts. The bipartisan deal was spurred on by a May 5th deadline to approve the bond. If lawmakers don't get these bills to the Governor for his signature by Monday, the state will have to use cash from the general fund to pay a $650 million pension payment due in October. The Governor is expected to sign the bills.</P>
<P>The CMA along with a coalition of more than 70 consumer, patient, and provider advocacy groups will continue to fight to stop the Governor's proposed $2.7 billion in Medi-Cal cuts. Governor Davis will revise his budget proposal on May 15 after the Department of Finance has seen the state's updated income report. The proposal is expected to contain almost $2 billion in further cuts or tax increases. Stay tuned to future issues of CMA's Budget Watch for more information. </P></FONT></DIV><BR><BR><STRONG>Brian Potts <BR>Managing Editor, CAL/AAEM News Service</STRONG> <BR>MS-IV, UC-Irvine<p><hr SIZE=1>
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