California Health Care in Danger of Going to Hell in Hand Basket: Budget Subcommittees Consider Cuts But Hold Off—For Now

[courtesy of California Progress Report]

• Proposals include eliminating various Medi-Cal benefits including dental
• Also: Cuts to safety-net hospitals, community clinics, and children's enrollment
• Votes will take place after Governor’s May revision
• May budget numbers look grim, Schwarzenegger warns

By Anthony Wright
Executive Director of Health Access California

Yesterday, both the Senate and Assembly budget subcommittees that oversee the public programs for health coverage reviewed cuts proposed by the Governor. The committees held off on big ticket items pending the May Revision of the budget – which will be released in a couple of weeks.

SENATE BUDGET SUBCOMMITTEE

Sen. Elaine Alquist presaged the Senate budget subcommittee hearing by saying that “all cuts were on the table,’’ even if members of the committee did not like them.

ACTIONS: The Senate subcommittee took actions on three small items, one to increase staffing for HIPPA compliance, and another to cut staffing for the Primary Care and Rural Health Branch.

WORKING DISABLED: Another vote was to extend the CA Working Disabled Program, which provides Medi-Cal coverage to people with disabilities who work, as long as their income is below 250% of poverty ($26,000 for an individual). (A related bill is Assemblywoman Julia Brownley’s AB 851.)

PRESCRIPTION DRUG DISCOUNTS: Another item that had been slated for approval – further delaying the implementation of the CA Discount Prescription Drug Program – was taken off the agenda for day, but may be considered in the future. This program is the result of 2006’s AB 2911, which would allow the state to use its leveraging power to negotiate lower prescription drug prices for millions of California’s uninsured, who currently pay full price for drugs. The program has already been delayed once. The Governor's budget does include its implementation this year.

CHILD ENROLLMENT SELF-CERTIFICATION: The Administration is pushing for the implementation of SB 437 (Escutia) which would allow Santa Clara and Orange Counties to start up a “self-certification’’ pilot program, which would streamline enrollment processes for children enrolling in Healthy Families or Medi-Cal by allowing families could self-certify their income and assets for enrollment in these programs. Like AB 2911, the implementation of this legislation has also been delayed once before. The Administration is asking for $30.9 million to start up this program ($14.4 million from the general fund). The Legislative Analyst's Office has recommended the delay, but health and child advocates, including the 100% Campaign and Health Access California, testified against the cut. Action was "help open."

GOVERNOR'S CUTS STILL PENDING: The following cuts were proposed by the Governor and heard by the Senate Health Committee, but action was "held open," with decisions likely to be made after the Governor's announces the May Revise.