Conference Committee Takes Action on Remaining Health Items

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Conference Committee Takes Action on Remaining Health Items
06/15/2009

Today, the Budget Conference Committee reconvened and went through open items on a number of the subject-matter agendas, including health. Some of the actions taken by the committee in the health arena are:

Scored savings of $1 billion from federal “flexibility” in the Medi-Cal program. The budget bill language is:

It is the intent of the Legislature to actively pursue the receipt of federal funds within the Medicaid (Medi-Cal) Program which are past due from the federal government, including but not limited to: (1) disability insurance benefits which resulted in state expenditures instead of federal Medicaid expenditures; (2) the retroactive payment of Part B Premiums due to systemic errors by the Social Security Administration; (3) needed adjustments to formulas that penalize California, such as the Medicare Part D “clawback”; and (4) receipt of federal funds due to California under various existing Medi-Cal Waiver programs.

Rejected restricting Medi-Cal Services for newly qualified legal immigrants and PRUCOL individuals.

Rejected elimination of the Healthy Families Program (though the four Republican conferees voted to eliminate) and rejected reducing the eligibility for the program to 200% of the Federal Poverty level. Instead, the committee adopted a Senate compromise which reduces by $70 million General Fund support for the Healthy Families Program, including infants and toddlers enrolled into HF from the Access for Infants and Mothers program (AIM). The effect will be to establish a waiting list for the program unless funds are made available. The budget bill language reads as follows:

It is the intent of the Legislature, during these unprecedented fiscal times, to maintain the integrity of the Healthy Families Program to continue to provide health, dental and vision coverage to low-income children. However, assistance from philanthropic organizations and other sources will be necessary in order for California to obtain its full allotment of federal funds to support this program. In the event funds are not available, it is the intent of the Legislature for the MRMIB to utilize its existing authority to establish a waiting list of children for enrollment in the program.

Rejected the May Revision proposal to eliminate the Adult Day Health Care benefit in the Medi-Cal program. Adopted an alternate proposal to: limit the maximum participation rate for enrollees to 3 days as of August 1, 2009 and until a higher threshold for medical necessity/medical acuity is established; freeze rates for ADHCs; and provide nurse evaluator positions to the DHCS to conduct on-site treatment authorization reviews.

Referred to policy committee the “Special Needs Trust Recovery” Trailer Bill Language.

Rejected the May Revision proposals to eliminate General Fund support and Proposition 99 support for clinics. A Senate alternative was adopted which cuts approximately 30% of these funds.

Rejected the May Revision proposal to eliminate Maternal, Child, and Adolescent Health programs. Adopted an alternate proposal which maintains reduced funding for the Black Infant Health and Adolescent Family Life programs.

Rejected the May Revision proposal on the AIDS Drug Assistance Program (ADAP) and some other HIV/AIDs programs and adopted an alternate proposal which maintains some funding.

Health cuts made last week but not yet reported on this site include the following Department of Mental Health cuts:

Adopted elimination of state support for mental health services other than federally required inpatient hospitalization and medication services for $64million General Fund savings.

Adopted reduction of state support for county programs developed using Mental Health Services Act funds that DMH contends increased services within EPSDT.

The Committee will reconvene tomorrow, Tuesday, June 16 to hear the remaining agendas, including human services.