Over the past couple of weeks, as federal and state budget proposals have come into sharper focus, the details are shaping up to be grim for hospitals and the patients who rely on them.
On the federal side, the House of Representatives voted early this morning to advance a federal budget that, in its current form, would cut hundreds of billions from Medicaid. California’s delegation voted along party lines, with all Republicans supporting and all Democrats opposed.
The bill now moves to the Senate, where it will likely see significant changes. However, its impacts would remain particularly harsh in California, which relies on provider taxes to support Medi-Cal (the state’s Medicaid program). CHA’s letter to the delegation opposing the bill calls out, point by point, what’s at risk:
- Rural health care
- Primary care
- Emergency care
- Behavioral health services
- Maternity care
- And more
Medicare funding is also in jeopardy, as the bill increases the federal deficit and Medicare payments to providers are likely to be cut, according to the Congressional Budget Office.
California hospitals — most in very precarious financial positions — will be pushed to the brink by these federal proposals, and even further challenged by a difficult state budget picture.
In California, a $12 billion state deficit has led to a May budget revision proposal that would swipe $1.6 billion from funding dedicated to health care organizations through last year’s Proposition 35 to backfill the shortfall.
Taken together, these proposals are a direct assault on the ability of hospitals to provide the care patients need.
On Monday, CHA hosted a briefing to share the risks facing hospitals, early thinking on how we can respond to these threats, and how hospital leaders must elevate their voices at this pivotal moment.
A recording of the full briefing is available.
On the state side, the proposed May budget revision ignores the will of millions of California voters who told the state — clearly and convincingly — that Medi-Cal needs more support. Of even greater concern given the federal threat, the state’s move piles on the backs of Californians who rely on Medi-Cal. Hospital leaders must reach out — now — to their state assemblymembers and senators to ask them to reject this budget proposal.
Things will move fast from here — federal lawmakers want to deliver a bill to President Donald Trump by July 4, and state lawmakers must pass a balanced budget by July 1. On the federal side, focus now turns toward the Senate in an effort to modify the legislation to minimize the impact on health care in California. On the state side, now is the time to speak — before a budget is finalized that cuts even deeper into California’s fragile health care system.
