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Today Gov. Brown, in his final year as Governor, released his state budget plan, totaling $190 billion for fiscal year 2018-19. As he has in the past, the Governor emphasized fiscal prudence even though the state is projected to have a healthy one-time surplus. He noted that California continues to face uncertain times, including ramifications of the recently enacted federal tax bill, which has not yet been factored into this year’s budget. Today’s budget continues to build the state’s Rainy Day Fund and keep spending in line with revenues.
Key issues of concern CHA has identified in the budget include:
A proposal by the Department of Health Care Services to restrict federal 340B Drug Pricing Program reimbursements within the Medi-Cal program, effective July 1, 2019. As described in the budget summary, the proposal allows the state to comply with existing federal requirements, helps protect program integrity, prevents unnecessary overpayments, collects additional drug rebates, and reduces the time and resources expended to resolve drug rebate disputes related to 340B claims. CHA will learn more details about this proposal and work closely with the Department of Health Care Services and other stakeholders to mitigate impact on hospitals that participate in the 340B program.
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