California State Budget Update; Proposal to Increase Reimbursement for Medi-Cal Providers June 16, 2015 Medi Cal, News Medi-Cal, 2015 California state budget, California budget 0 Governor Jerry Brown and legislative leaders have reached a budget deal that calls for $115.4 billion in spending in the fiscal year that begins July 1. Brown also announced that he is calling two special sessions to address how California pays for roads, highways and other infrastructure and Medi-Cal. The announcement came a day after the Legislature passed their own budget plan that called for $117.5 billion in spending. The Legislature’s budget assumes the state will collect $2.3 billion in additional revenues that was not included in the Governor’s May Revise. The difference in revenue assumptions is driving many of the other spending differences, including the Legislature’s approval for: Increased reimbursement of 5% for Medi-Cal providers, including dentists. The proposal partially eliminates the 10% cut enacted by AB 97 in 2011, and also includes $12 million to partially restore cuts to hospital-based skilled nursing facilities that were also contained in AB 97. Overall, the Brown administration continues to be concerned about the increase to provider reimbursement rates and the ability of the state budget to maintain these funding levels over the long term. Increased funding for state-subsidized child care and early education slots by $390 million more than the Governor’s budget, for an additional 27,000 slots and higher reimbursement rates for child care providers. Increased funding for the University of California by $25 million above the Governor’s proposal. The Legislature’s increased funding level is contingent on several conditions such as UC increasing in-state enrollment and a pledge not to raise in-state tuition over the next two years. Over the next two weeks (before July 1, the start of the next fiscal year), the legislative leaders will continue to negotiate with the administration on many of these differences. The result of these negotiations will be the adoption of a smaller budget proposal. SFMS and CMA applaud the state Legislature’s attempt to increase Medi-Cal reimbursements. Just today, the State Auditor released its audit of the Department of Health Care Services’ highlighting significant problems with Medi-Cal managed care plans’ network adequacy and access to care. SFMS/CMA will continue to work with its legislative allies and its coalition partners to either maintain funding for provider reimbursement rates in the budget or provide an alternative revenue source to support significant increases in provider reimbursement rates. Click here to view the audit report. Comments are closed.
