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CHA News

Legislature Passes State Budget

CHA disappointed proposal does not address Medi-Cal provider rate cuts

Late yesterday, the Legislature completed its work on the fiscal year 2014-15 state budget, having passed the budget bill and a number of trailer bills. CHA is extremely disappointed the budget does not include funds to address any Medi-Cal provider rate cuts and, consequently, does not include elimination of the “clawback,” or retroactive recoupment of reimbursement for services provided by hospital-based skilled-nursing facilities dating back to June 1, 2011. Several members of the Legislature commented on the issue and expressed disappointment that they were unable to address Medi-Cal provider rates this year. CHA will continue to work on behalf of members to address the impact of the clawback.

The budget plan contains a number of notable health care measures, and includes $438 million to expand Medi-Cal under the Affordable Care Act. In addition, the Office of Statewide Health Planning and Development would receive nearly $3 million to expand a program that supports medical residency slots in underserved areas of the state and $4 million specifically to add new primary care residency slots. The budget proposal now goes to the Governor, who has until the end of June to sign it.