Money matters

California’s budget is now 50 days late and we are headed toward our longest budget impasse *ever*. But today brought a bit of good news: A Los Angeles judge has blocked the state’s 10% Medi-Cal reimbursement cut, which took effect July 1.

In order to get a jump start on closing the state’s $17.2 billion shortfall, lawmakers and the governor approved a bunch of borrowing and initial cuts. One of the cuts was to reduce the reimbursement rates paid to providers caring for Medi-Cal patients. California already ranks among the lowest-paying states for Medicaid providers — this cut made things even worse, as Anthony pointed out in the Sacramento Bee article today.

Of note: HD Palmer in the Department of Finance says the judge’s ruling would “cost” the state $575 million. We would argue that NOT paying providers their normal, abysmally low reimbursement rates would cost the state — not only $575 million in matching federal dollars, but:

  • $1.4 billion in business activity,
  • 11,400 jobs and
  • $517.5 million in wages.

(Per FamiliesUSA Medicaid Calculator)

Health Access California promotes quality, affordable health care for all Californians.

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