The California Budget Project Criticizes the Governor's Proposed Cuts

The California Budget Project projects that the governor’s proposed budget cuts will increase the number of uninsured Californians and eliminate needed access to those who remain covered by Medi-Cal and Healthy Families. While the cuts would save the state $1.1 billion, they would add a half a million of the poorest Californians to the ranks of the uninsured and force the state to forgo $1.2 billion in federal matching funds.

California already spends among the lowest (48th) of all states in per person Medicaid spending, despite much higher local cost of care. Low reimbursement rates limit the availability of care for covered Californians – many primary care doctors, hospitals and specialists around the state do not accept Medi-Cal patients.

Moreover, the governor would shift many costs to the patients and eliminate coverage for some needed preventive care, which will make it less likely that patients will seek more care that is designed to keep them healthy, leading to higher program costs down the road.

The CBP recommends that the governor focus on providing more preventive-oriented care and on promoting transparency by collecting and reporting performance data on providers so that all patients, including Medi-Cal, have the information they need to choose the highest quality and cost-effective doctors.

CHCC believes that the governor’s proposed cuts in the Medi-Cal program should be of concern to Californians. If these cuts take place, they will not only erect barriers to care for those who are most vulnerable, but also drive up premiums even further as providers look to make up lost revenues by charging higher prices to those who are commercially insured.

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