California Health Care Groups Criticize Gov. Schwarzenegger’s Proposed Budget Cuts

Health care groups that supported Gov. Arnold Schwarzenegger's $15 billion health coverage expansion plan last year are criticizing the governor's proposed fiscal year 2009 budget, saying that it could increase the number of uninsured state residents, the Los Angeles Times reports. Schwarzenegger's proposed budget would reduce spending on Medi-Cal, California's Medicaid program, by $1.1 billion in the next fiscal year, which begins next month.

A coalition that includes Catholic Healthcare West; the Service Employees International Union; AARP; Health Access California; Kaiser Permanente; Health Net; and the California Medical Association, the only one of these groups that did not back Schwarzenegger's effort last year, is planning to hold rallies and media events throughout the state over the next two months that aim to persuade voters and state legislators that health care cuts for low-income residents would lead to higher health costs for all Californians and lead to more hospital closures. Separately, the California Hospital Association, which is not part of the coalition, launched a television and newspaper advertising campaign on Tuesday opposing Schwarzenegger's proposed budget.

According to a report released Wednesday by Health Access California, the proposed restrictions on public health insurance programs, including tighter eligibility rules, could increase the number of uninsured residents in the state by one million, to more than 7.5 million over three years. The report states that previous estimates on the effects of the proposed budget have underestimated the severity of the cuts by focusing only on the first year, but the changes proposed by Schwarzenegger would lead to larger reductions in future years. Anthony Wright, executive director of Health Access, said during a conference call with reporters on Wednesday, "It's outrageous that (Schwarzenegger's) calling the number of uninsured a moral crisis while proposing a budget that only increases the number of uninsured."

Lisa Page, a Schwarzenegger spokesperson, said, "The governor's proposed budget reflects a difficult budget year, a $17 billion budget hole and the severity of our broken budget system. This is a governor who is dedicated to comprehensive health care reform that will ensure access to affordable, quality health care coverage for all Californians" (Rau, Los Angeles Times, 6/26).