CHA News Article

Medi-Cal Supplemental Payments for Selected Physician Services to Increase Under Budget Package
Funding also allocated for new Physicians and Dentists Loan Repayment Program

The fiscal year 2018-19 state budget allocates more than $1 billion of Medi-Cal’s share of Proposition 56 funding for 1) payment increases for doctors, dentists, and other Medi-Cal providers ($821.3 million) and 2) a new loan assistance program for recent medical and dental school graduates who serve Medi-Cal members ($220 million). Approved by California voters in 2016, Proposition 56 increases the excise tax rate on cigarettes and tobacco products. A specified portion of the Proposition 56 tobacco tax revenue is allocated to the California Department of Health Care Services (DHCS) for the non-federal share of health care expenditures in accordance with the annual state budget process. 

The funds will be matched with federal dollars, resulting in over $2 billion in increased funding to physicians who treat Medi-Cal members. 

DHCS will release additional information related to the increased payments through provider bulletins. In partnership with the California Office of Statewide Health Planning and Development, DHCS also will develop the eligibility rules and other criteria for the loan assistance program, which is called the “Proposition 56 Medi-Cal Physicians and Dentists Loan Repayment Act Program.” 

The Loan Repayment Act Program funds are distinct and separate from the $40 million in Proposition 56 funding designated for primary care and emergency medicine residency programs. CHA will provide additional information in CHA News as it becomes available.