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Medi-Cal Redesign Delayed Until January 2005

CA DISABILITY COMMUNITY ACTION NETWORK
CAPITOL NEWS REPORT - ISSUE #140-2004 (see also 139-2004)
Linking people to disability rights and unified action
Website: www.cdcan.org   Toll-free info Lines Up!
August 2, 2004 - Monday late afternoon

Official Statement on Delay of Medi-Cal Redesign Until January Issued by California Health & Human Services Agency

SACRAMENTO   - An official statement by the California Health and Human Services Agency was released late this afternoon (August 2) further detailing why the Schwarzenegger Administration is delaying the release of any Medi-Cal Redesign proposal - originally scheduled for today - until January, as part of the Governor's 2005-2006 budget proposal.  As reported earlier this afternoon,  [see CDCAN Capitol News Report #139-2004], the California Health and Human Services Agency intends to continue further development of the proposal, working with the Legislature and stakeholders over the next several months.

The statement - posted on the State's Medi-Cal Redesign website, at http://www.medi-calredesign.org/   is not attributed specifically from Kim Belshe, Secretary of the Health and Human Services Agency, but is on the Agency's letterhead.

The Medi-Cal redesign will likely call for the most sweeping changes to the Medicaid program in California - a program that is used by hundreds of thousands of low-income children and adults with developmental and other disabilities, people with traumatic brain injuries and seniors, and people with mental health needs. No major reductions or changes were made to the Medi-Cal program in the budget that was just passed by the Legislature and approved by the Governor.

Medi-Cal Redesign Update (Issued 8/2/04 by the California Health and Human Services Agency)
Note: this is the complete update (statement) as released by the California Health and Human Services Agency today:

"In January, Governor Schwarzenegger announced his intent to redesign Medi-Cal, a publicly funded program that provides health care coverage to more than 6.7 million low-income children and their parents, seniors and disabled Californians.  The impetus for this complex undertaking is both clear and compelling.  In the past five years, program expansions and rising health care costs have caused Medi-Cal expenditures to grow by more than $3 billion, a 41% increase.  In order to ensure continued access to health care coverage for California's most vulnerable residents, the state must contain costs through programmatic reforms and operational efficiencies.

Since the Governor's January announcement of a planned Medi-Cal redesign, the California Health and Human Services Agency (CHHSA) engaged in a thoughtful public input process designed to ensure that the views of beneficiaries, providers, counties and advocacy groups informed our thinking on elements of reform.  In addition, CHHSA worked through issues related to the financing of public and private hospitals that provide services to Medi-Cal beneficiaries and the uninsured, issues that have implications for the overall redesign effort.  Our plan was to present a redesign proposal to the Legislature in early August, however a few key issues still need to be resolved.

The Administration remains firmly committed to restructuring Medi-Cal, and the Governor plans to present a restructuring proposal as part of the January budget.  Meanwhile, CHHSA and the Department of Health Services will:

* Refine components of the redesign that will ultimately be included in the January proposal.
* Continue working with federal officials and safety net hospitals (those serving Medi-Cal recipients and the uninsured) to resolve outstanding issues on hospital financing.
* Review and analyze Medi-Cal program improvement ideas coming out of the California Performance Review for possible inclusion in the restructuring proposal.

California has a long and proud tradition of making access to health care a reality for those most in need.  We want to maintain that tradition; however, in order to do so, we most provide Medi-Cal coverage in a more rational and affordable manner.  With these goals in mind, our redesign proposal may include components that would:

* Expand the use of organized systems of care that increase access, improve outcomes and contain costs.
* Revise the Medi-Cal eligibility and enrollment process to make it more efficient and improve customer service.
* Tailor benefits to the needs of distinct Medi-Cal populations.
* Incorporate beneficiary cost sharing that promotes personal ownership and responsibility, aligns Medi-Cal with other publicly funded health programs and encourages appropriate utilization of services.
* Stabilize financing of the state's safety net to ensure that hospitals have the resources to care for low-income and uninsured Californians.

Redesigning a program as complex as Medi-Cal is no simple task, and we want to do it right. Toward this end, the Administration intends to work closely with the Legislature and stakeholders as the redesign proposal is further developed."

BACKGROUND

"Medi-Cal is an essential source of health care for California's most vulnerable residents,  promoting the health and well being of low-income children, supporting the ability of their parents to become self-sufficient and providing critical services to seniors and disabled persons.  Today, more than 6.7 million low-income Californians - 15.3 percent of the state's population - rely on Medi-Cal for health care services.

Since 1999, Medi-Cal State General Fund (GF) costs have grown by more than $3 billion, a 41% increase.  Much of this increase stems from program expansions and reforms that have added 1.7 million new beneficiaries over the past five years, a 32% increase.

Medi-Cal is the primary funding source for the state's mental health program and system of care for the developmentally disabled.  Additionally, Medi-Cal; provides significant funding for California's health care safety net, including the public and private hospitals that serve Medi-Cal beneficiaries and the uninsured.  Even with one of the lowest per capita costs of any Medicaid program in the nation, it is estimated that Medi-Cal will cost roughly $31 billion in total funds and $13.4 billion in GF dollars in 2004-05.  Medi-Cal is now the third largest component of the GF budget (14%)."
 

FOR MORE INFORMATION ABOUT CA DISABILITY COMMUNITY ACTION NETWORK
URGENT - CONTRIBUTIONS NEEDED TO CONTINUE EFFORT
CDCAN may soon have to close down! The advocacy effort toward the budget - and Medi-Cal Redesign and other critical issues has continued and there has not been the expected time to finalize proposals and connect with potential grants and other funding.  Many many, thanks again,  to the friends, people with disabilities and their families, community organizations and others who have sent in generous and needed contributions and donations.  Contributions from people and organizations is  very urgently needed to keep the advocacy efforts going for the next several months, as we work to establish non-profit status, which we can focus after the budget is signed.  Apologies to anyone who have not yet received a thank you - emails, letters, calls have been overwhelming!
Please make check or money order  to:  California Disability Community Action Network  (or abbreviate CDCAN).  A method to contribute by credit card (through Paypal) is NOW set up on our website, at www.cdcan.org.   CDCAN is not yet a non-profit organization but will be soon.  Send contributions to: California Disability Community Action Network,  1225 8th Street Suite #480, Sacramento, CA  95814.  A method to contribute by credit card (through Paypal) is NOW set up on our website, at www.cdcan.org.
* Who Is CDCAN?
The California Disability Community Action Network is a non-partisan link to thousands of Californians with developmental and other disabilities, their families, community organizations and providers, direct care and other workers, and other advocates. These action alerts and news reports is for all of them. In addition it also goes to news organizations, state and local government officials and staff.
* How To Receive CDCAN Capitol News Reports and Alerts
If you would like to get on this distribution (and conversely, get off of it) please send an email with that  request to:  martyomoto@rcip.com OR sign up via the CDCAN website at www.cdcan.org.   Sharing information is part of our organizing effort. Please feel free to forward or copy  this (attribution is nice). We're all in this together!
* How To Contact CDCAN
Marty Omoto, director/organizer  -  California Disability Community Action Network   WEBSITE: www.cdcan.org 
1225 8th Street Suite 480 Sacramento, CA 95814   VOICE PHONE: 916/446-0013
FAX number: 916/446-0026        email: martyomoto@rcip.com 
INFO HOTLINE TOLL FREE NUMBER: 1-877-260-0267 (cannot leave messages) SAME INFO HOTLINE FOR SACRAMENTO AREA:  486-4652
 

Last Updated on 08/03/04   webmaster@namiscc.org

 

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