MAYOR NEWSOM CALLS FOR RESPONSE TO MEDI-CAL REIMBURSEMENT CUTS
California Political Desk
March 27, 2008
SAN FRANCISCO, CA – Mayor Gavin Newsom visited the Sacramento Press Club yesterday to discuss his administration´s landmark universal healthcare plan, Healthy San Francisco, and to discuss the recent Governor-proposed and Legislature-approved cut of $1.1 billion in state funds from Medi-Cal (including $544 million in state general funds) for fiscal year 2008-2009. This reduction would be accomplished primarily through a 10% provider reimbursement rate cut.
"As Mayor of San Francisco, I am prepared to bring California´s counties together and to help lead this effort to enjoin cuts that are both in violation of the law and in violation of our fundamental California values," said Mayor Newsom. "We´d like to work cooperatively with the Governor and the Legislature to stave off these cuts. We´d rather be
working partners, instead of sparring partners."
Before his appearance at the Press Club, Mayor Newsom met with more than 40 leading statewide health care provider groups to discuss the decimating impact of the cuts to health care access across California and to develop strategies for working together to stop them from taking effect. Mayor Newsom suggested that, if neither the Governor nor the Legislature were willing to achieve a workable alternative to the scheduled cuts, he was prepared to lead a statewide coalition of healthcare providers, labor unions, and local governments in a lawsuit against the state.
The Medi-Cal reductions were proposed to help balance the state budget. However, cutting Medi-Cal threatens to drive up the cost of health care for everyone and could cause the state to lose more than $1 billion in matching federal funds.
Medi-Cal is the backbone of the state's health-care system. It is its single largest source of medical insurance, providing coverage for one out of every six Californians. In the City and County of San Francisco, nearly 123,000 residents rely on Medi-Cal.
The Governor´s Medi-Cal budget would result in an estimated $8.7 million in funding reductions for the San Francisco Department of Public Health. Healthy San Francisco also would be indirectly affected by the cuts because the lost revenue would limit enrollment in the program.
The proposed Medi-Cal cuts would come after years of underfunding the Medi-Cal system, leading to one of the lowest reimbursement rates in the nation. California spends almost 30% less per Medi-Cal beneficiary than the national average - and the least among the nation's 10 most populous states, according to the Kaiser Family Foundation. This has resulted in a severe shortage of physicians willing to treat Medi-Cal patients, further
limiting access to medical care.
"As Mayor of San Francisco, I am prepared to bring California´s counties together and to help lead this effort to enjoin cuts that are both in violation of the law and in violation of our fundamental California values," said Mayor Newsom. "We´d like to work cooperatively with the Governor and the Legislature to stave off these cuts. We´d rather be
working partners, instead of sparring partners."
Before his appearance at the Press Club, Mayor Newsom met with more than 40 leading statewide health care provider groups to discuss the decimating impact of the cuts to health care access across California and to develop strategies for working together to stop them from taking effect. Mayor Newsom suggested that, if neither the Governor nor the Legislature were willing to achieve a workable alternative to the scheduled cuts, he was prepared to lead a statewide coalition of healthcare providers, labor unions, and local governments in a lawsuit against the state.
The Medi-Cal reductions were proposed to help balance the state budget. However, cutting Medi-Cal threatens to drive up the cost of health care for everyone and could cause the state to lose more than $1 billion in matching federal funds.
Medi-Cal is the backbone of the state's health-care system. It is its single largest source of medical insurance, providing coverage for one out of every six Californians. In the City and County of San Francisco, nearly 123,000 residents rely on Medi-Cal.
The Governor´s Medi-Cal budget would result in an estimated $8.7 million in funding reductions for the San Francisco Department of Public Health. Healthy San Francisco also would be indirectly affected by the cuts because the lost revenue would limit enrollment in the program.
The proposed Medi-Cal cuts would come after years of underfunding the Medi-Cal system, leading to one of the lowest reimbursement rates in the nation. California spends almost 30% less per Medi-Cal beneficiary than the national average - and the least among the nation's 10 most populous states, according to the Kaiser Family Foundation. This has resulted in a severe shortage of physicians willing to treat Medi-Cal patients, further
limiting access to medical care.
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