September, 2003
Medi-Cal Aged and Disabled Federal Poverty Level Program- The budget includes $127.6 million, (63.8 million from the General Fund) to continue no-cost Medi-Cal for seniors and people with disabilities.
Medi-Cal Eligibility and Optional Services-Final Budget rejects the Governor's proposals for major reductions in the Medi-Cal program eligibility and optional services. There were no optional benefits eliminated, though some "cost containment" measures related to hearing aids and their accessories and the rental of durable medical equipment, as well as prosthetics and orthotics. Total Cut/Savings to General Fund $580,000 (General Fund) for cost containment for hearing aids, $500,000 General Fund for cost containment for durable medical equipment rentals. $2 million for cost containment for prosthetic and orthotic appliances.
Medi-Cal Outreach-Funding for all Medi-Cal outreach, education, and enrollment efforts by schools and community groups has been cut. The cut amounted to $18.6 million, $7.7 million from the General Fund.
Health and Human Services Agency
Reduces by $807,000 (General Fund) funding for the State Health and Human Services Agency. This is the agency that is responsible for the Long Term Care Council and Olmstead planning.
SSI/SSP
Retains SSI/SSP Cost-of-Living (COLA) for the SSI/SSP program. Suspends the January 2004 COLA for a savings of $104 million in 2003-2004 and $213 million in 2004-2005.
Medi-Cal Provider Rates- The budget adopts a 5% rate reduction primarily for physicians, pharmacies and managed care plans effective January 1, 2004 for General Fund savings of $115 million in 2003-2004. There are several exemptions to this rate cut including long term care facilities, adult day health centers, intermediate care facilities for the developmentally disabled, and clinical laboratories.
Medi-Cal Eligibility Redetermination-Final Budget enacts a semi-annual reporting process to verify Medi-Cal eligibility of adult beneficiaries, instead of quarterly status reporting that the Governor requested in his May Revise.
AB 1762-Omnibus Health Trailer Legislation-addresses key 2004-05 fiscal structural issues, as well as makes necessary statutory changes for implementation of the Budget Bill for 2003. The 2004-05 fiscal structural issues are as follows:
- Freezes rates for long-term care facilities at their 2003 levels.
- Freezes hospital inpatient rates at their 2003 levels.
- Freezes health, dental and vision plans participating in the Healthy Families Program (HFP) at their 2003 levels