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CHA News

Governor Signs State Budget

The Governor signed the fiscal year 2012-13 state budget bill June 27, after the Legislature passed the remaining 21 trailer bills earlier in the day. To close the $15.7 billion budget deficit, the $92 billion budget contains many deep and controversial cuts, including reductions to health care and welfare programs. One of the key trailer bills, AB 1494 (Committee on Budget), transitions all children in the Healthy Families program to Medi-Cal beginning Jan. 1, 2013.The transition will occur in four phases over 12 months and is expected to save the state $13 million in the budget year and $73 million in subsequent years. AB 1468 (Committee on Budget) implements the dual eligible demonstration project in eight counties. Current law authorizes the Department of Health Care Services to establish dual eligible demonstration projects in up to four counties to provide dual beneficiaries, who are eligible for both Medicare and Medicaid services, with a continuum of services that maximizes coordination of benefits between Medicare and Medicaid beginning no sooner than March 1, 2013. The demonstration projects are expected to achieve significant savings over the next several years.