As a result of Obamacare’s expansion of Medicaid eligibility, the number of Californians enrolled in Medi-Cal — the health insurance plan for low-income, disabled and “disadvantaged” residents — has exploded to more than 12 million, nearly one-third of the state’s total population.
The state’s Medi-Cal budget for 2015-16 is $91.3 billion — almost $10 billion more than the current fiscal year. More than half of the cost comes from the federal government, but the state also increased its contribution from the general fund by $700 million for the next fiscal year, up to $18.2 billion.
To add to the problem, many doctors refuse to accept Medi-Cal because of low reimbursement rates. Even for those who do, low caps on Medi-Cal patients have become the norm. According to the California Medical Association, Medi-Cal pays an average of $41.48 for an office visit, less than half the $102.45 that Medicare pays for the same service.
Part of the problem traced back to 2011, when the state Legislature, deep in the red, passed Assembly Bill 97 — a bill cutting Medi-Cal reimbursements by 10%. A court injunction forestalled the cut until this fiscal year, but did not prevent it from staying in effect each year after that. In opposing the cut, Medi-Cal providers have been joined by the California Hospital Association and representatives in California’s rural counties, where doctors accepting Medi-Cal can be especially difficult to find without traveling long distances.
One way for the state government to claw back some health care outlays is the Medi-Cal recovery program, which allows the state to reclaim Medi-Cal money from the estates of deceased beneficiaries, including their homes. For many affected Californians, the takings come as an shock. Beneficiaries can be targeted even if they never went to a doctor.
But the state legislature is seeking to overturn the Medi-Cal recovery program by making it more difficult for the state government to recover funds. To that end, a new bill already has received a unanimous vote from the state Senate. The bill now goes to the state Assembly.
Adding to the sense of chaos, political activists have begun a new push to increase health care access for unlawful immigrants, which means the number of California residents on Medicaid will increase even more.
Source: California Political Review
~Éowyn