Ensure Adequate Funding for Medi-Cal Patients
Medi-Cal provides health coverage to the most vulnerable Californians: one-third of the entire state and nearly half of all children. Low-income Californians who rely on Medi-Cal coverage are predominantly people of color.
Insufficient funding hurts access to care for Medi-Cal patients
Systemic underfunding means hospitals that treat Medi-Cal patients are reimbursed just 74 cents for every dollar they spend providing care, resulting in fewer resources for California’s most vulnerable communities. This insufficient and unequal funding threatens access to care for Medi-Cal patients.
Creating an equal playing field for those who care for Medi-Cal patients will mean better health outcomes for California’s highest risk residents.
Current state law requires Medi-Cal inpatient reimbursement for private and district hospitals to be fixed at 2012-13 levels. And funding for patient care at public hospitals is also significantly lower than the cost of care. This despite the fact that expenses for patient care have increased by more than 45% since rates were frozen a decade ago.
California lawmakers must support health equity for all by modernizing Medi-Cal funding:
- Replace the outdated policy that froze certain Medi-Cal reimbursements at 2012-13 levels
- Create annual adjustments that account for the social and environmental challenges patients are experiencing
- Change inpatient fee-for-service payments at public hospitals to a value-based structure that includes state General Fund support