Brown’s Budget May Revision Increases Medi-Cal Spending But Does Not Reverse Provider Reimbursement Cuts May 22, 2014 Medi Cal, Medicaid, News California State budget, Medi-Cal, Medi-Cal provider reimbursement cut 0 Last week, Governor Jerry Brown released his revised $156.2 billion budget plan. While Brown’s proposal would take the bulk of an unexpected state tax revenue windfall to cover vastly expanded enrollment in the state's Medi-Cal program, the revised budget does not reverse the 10% Medi-Cal reimbursement cuts imposed in 2011. It is estimated that 11.5 million beneficiaries—nearly 30% of Californians—are eligible for the Medi-Cal program. If the reimbursement rate cuts are not eliminated, California will be balancing the budget on the backs of California’s poorest and most vulnerable patients. The new budget plan projects that 1.4 million more people have signed up for Medi-Cal under the Affordable Care Act this year than anticipated. According to the Brown’s budget proposal, higher enrollment will cost California about $1.2 billion more than predicted. Also of note, the May Revision assumes a net increase of $2.4 billion in expected revenues attributable to higher than expected income tax reporting. Major changes to the budget include additional expenditures for education, responding to drought-related issues, state employee retirement and state trial court funding. In addition, the proposal reflects a recent agreement between the Governor and legislative leaders to create a Rainy Day Fund will help the state minimize future boom-and-bust cycles. For more on the Brown budget, see CMA's budget analysis. Comments are closed.
