California Enacts Revised Budget with Additional $1.4 Billion in Medicaid Cuts

Governor Arnold Schwarzenegger (R) signed a revised budget July 28 containing $1.4 billion in new spending reductions for the state's Medicaid program, Medi-Cal. According to the revised budget from Schwarzenegger’s Department of Finance, most of the cuts to the state Medi-Cal program ($1 billion) is expected to be restored by increased federal Medicaid funding from waivers and payments of past due amounts. The California Medical Association called this money “shaky revenues” that would lead to further cuts if the federal government does not agree.

•a line item veto reducing county funding to administer Medi-Cal ($60.5 million)
•expanded efforts to combat fraud, waste, and abuse within the Medi-Cal program ($46.8 million)
•and limiting adult day care visits to three days per week and freezing program rates as of Aug. 1, 2009 ($28.1 million)