WICS Live: Around the States

California: Budget Signed but Medi-Cal Takes Big Hit. A revised budge signed July 28th by Governor Arnold Schwarzenegger contained an additional $2 billion in cuts to health case, including $1.4 billion in new Medi-Cal spending reductions. The bulk of reduced state Medi-Cal expenditures—$1 billion—is expected to be restored by increased federal Medicaid funding under waivers and payment of past due amounts. As reported elsewhere in this issue, the budget package also authorizes the Department of Health Care Services to seek federal waivers allowing California to restructure Medi-Cal to better coordinate care among providers and provide incentives for improved treatment outcomes for high-cost enrollees—including seniors, individuals with disabilities, children with significant medical needs, and individuals with behavioral health issues. The remaining reductions come from adjustments implementation of new federal and state drug pricing policies; a line item veto reducing county funding to administer Medi-Cal; expanded efforts to combat fraud, waste, and abuse; freezing program rates as of August 1, 2009, among other items. The budget also seeks $1 billion in savings by 2012-13 by requiring online enrollment and eligibility for the Medi-Cal, CalWORKs—the state’s welfare-to-work program, and Food Stamp programs. The budget package also cuts $178.6 million from the state's Children's Health Insurance Program (CHIP) program, Healthy Families.