California’s continuing Medicaid woes

Five years ago as California stared down a severe budget gap as the economy cratered, the state drew up plans to cut $1.2 billion from its Medicaid program, Medi-Cal, through program reductions and federal rule waivers.

At the time, then-California Health & Human Services Agency Secretary Kim Belshé warned that even with a $10 billion infusion of supplemental federal cost share funding provided by the American Recovery and Reinvestment Act of 2009, “California cannot afford the Medicaid program as currently structured and governed by federal rules and requirements.”

Now with the budget crisis in the past amid an uneven economic recovery, the Golden State faces renewed concerns that it can fund a sustainable Medicaid program given its acceptance of expanded family status and income eligibility guidelines under the Patient Protection and Affordable Care Act. As a result of the expansion, a staggering 3 in 10 California residents are expected to obtain health coverage though the program. In addition to budgetary concerns, there is also the practical matter of whether Medi-Cal beneficiaries will have adequate access to providers given the state’s low reimbursement rates.

Kaiser Health News provides an analysis of the situation here.


Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email or call 530-295-1473. 

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Frederick Pilot

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