California Democrats, Advocates Criticize Governor’s Proposed Reductions to State’s Medicaid Program
Advocates for health care, welfare and people with disabilities on Dec. 17 criticized California Gov. Gray Davis' (D) proposed reductions to Medi-Cal, the state's Medicaid program, the AP/Contra Costa Times reports (Jablon, AP/Contra Costa Times, 12/18). Under the proposed budget reductions, the state would reduce income eligibility limits for Medi-Cal to 61% of the federal poverty level. The plan also would require Medi-Cal beneficiaries to reverify their eligibility each quarter rather than each year. In addition, the plan would eliminate optional Medi-Cal benefits, such as dental care and medical supplies. The plan also would reduce Medi-Cal reimbursement to physicians and other providers by 10% (Kaiser Daily Health Policy Report, 12/10). During an Assembly budget subcommittee hearing on the proposed cuts, advocates, representatives of medical supply companies and some subcommittee members said the cuts would exacerbate budget problems by forcing people to seek more expensive treatment in emergency rooms. Opponents of the cuts were particularly critical of the plan to require quarterly reverification, contending it would save money only by removing eligible people from Medicaid because of bureaucratic errors (AP/Contra Costa Times, 12/18).
Tax Increases?
Several Democrats said they would not consider the cuts unless tax increases also are an option (Bernstein/Halper, Los Angeles Times, 12/18). Davis on Dec. 18 said he would propose tax increases to address the state's overall budget shortfall, which has reached $34.8 billion, $14 billion higher than was estimated about a month ago (Jones, Los Angeles Times, 12/19).
