The SCMMA & CMA represent the voices of more than 43,000 physicians state-wide
Governor Jerry Brown recently released his revised $156.2 billion budget plan. While the proposal would allocate the majority of the state tax revenue windfall to cover expanded enrollment in the Medi-Cal program, the revised budget does not restore the 10% Medi-Cal reimbursement cuts.
If the reimbursement rate cuts are not restored, California will have a difficult time balancing the budget and will harm its poorest and most vulnerable patients.
In March 2011, the California Legislature passed AB 97, which included a 10% reimbursement rate cut for physicians, dentists, pharmacists, and other Medi-Cal providers. Shortly after the bill’s passage, CMA filed a lawsuit to stop the cuts. In 2013, the 9th Circuit Court of Appeals reversed an earlier favorable decision by a district court that had prevented the state from making the cuts. CMA then requested a rehearing from the full Court of Appeals, which was denied. The U.S. Supreme Court also refused to hear the case.
The new budget projects that 1.4 million more people have signed up for Medi-Cal under the Affordable Care Act this year than expected. According to Brown’s budget proposal, this higher enrollment rate will cost California about $1.2 billion more than anticipated.
Other major changes to the budget include additional funding for education, drought-related response, state employee retirement, and state trial court funding. In addition, the proposal reflects a recent agreement between the Governor and legislative leaders to create a Rainy Day Fund, to help the state minimize future boom-and-bust cycles.
For more on the Brown budget, please read CMA's budget summary.
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