California Heavily Affected by Looming Sequester Cuts February 25, 2013 Medicare, News, Politics and Medicine Medicare cuts, sequester cuts, sequestration 0 The White House detailed how California and other states would be affected if a deal is not reached by Friday to avoid automatic cuts under sequestration. The automatic cuts involve nearly $1 trillion in across-the-board reductions over a decade, including a 2% reduction to Medicare reimbursement rates. If the sequester cuts go through as expected, Obama administration officials and experts estimate that California would lose about $670 million annually in federal grants, as well as $3.3 billion in military and defense revenue. Health and human services-related cuts in California would involve the loss of: $12.4 million in grants to prevent and treat substance use disorders; $2.6 million in funds to help improve the state's response to public health threats; $2 million in funds for the California Department of Public Health, resulting in 49,300 fewer HIV tests; and, $1.1 million in funds for vaccines, resulting in 15,810 fewer children receiving immunizations. Although it is unlikely that federal lawmakers will reach a deal by March 1, they are expected by Wednesday to hold votes on competing measures to avoid sequester. A plan by Senate Majority Leader Harry Reid (D-Nev.) would delay the cuts until January 2014, replacing them with a mix of $110 billion in new tax revenue and more narrowly tailored spending cuts. Meanwhile, a plan by Senate Minority Leader Mitch McConnell (R-Ky.) still is being developed. Officials say McConnell’s plan might leave the sequester in place but allow for more flexibility among agencies in implementing the cuts. Source: California Healthline, February 25, 2013. Comments are closed.
