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ThePulse - > The Pulse -> The budget dust settles: How did health programs fare?
The budget dust settles: How did health programs fare?

Gov. Arnold Schwarzenegger signed the tardiest state budget ever today.

The $144.5 billion spending plan did see some line-item vetoes from the governor, including cuts to a program that lowered prescription drug prices for low-income residents.

(Read "Schwarzenegger signs Calif. budget 85 days late" on Bakersfield.com.)

The Department of Health and Human Services was hit hard by the governor's vetoes, reducing the department's budget by $153 million. It was the third hardest hit, after the Business, Transportation and Housing Agency and tax relief/local government programs.

Here's how some health programs fared, according to the state's budget site:

  • Medi-Cal: $14.2 billion in 2007-2008 to $14.5 billion in 2008-2009
  • Supplemental Security Income/State Supplementary Payment: $3.6 billion in 07-08 to $3.8 billion in 08-09
  • Regional centers: $2.1 billion in 07-08 to $2.4 billion 08-09
  • Developmental centers: $409.6 million in 07-08 to $361.5 million in 08-09
  • Community mental health services: $769.5 million in 07-08 to $835.4 million 08-09
  • CalWORKS: $1.5 billion in 07-08 to $2 billion in 08-09
  • In-home supportive services: $1.7 billion in 07-08 to $1.8 billion in 08-09
  • Children's services: $1.6 billion in 07-08 to $1.7 billion in 08-09
  • Healthy Families: $395.8 million in 07-08 to $397.5 million in 08-09
  • Department of Public Health: $394.9 million in 07-08 to $349 million in 08-09
  • Alcohol and drug programs: $268.6 million in 07-08 to $290 million in 08-09


In the Department of Public Health's budget, the governor reduced the funds for:

  • Infectious Disease from $365 million in the proposed budget to $358.8 million in the final budget
  • Family Health from $1.5 billion to $1.498 billion
  • County Health Services from $40.7 million to $39.8 million
  • Environmental Health from $132.5 million to $131.6 million


He deleted $5.5 million of the $6.8 million General Fund legislative augmentation to local health jurisdictions for AIDS/HIV education and prevention programs.

The governor eliminated the California Discount Prescription Drug Program Fund, a savings of $2 million. Eliminating this program also meant reducing other costs associated with the program in other departments.

He offered this explanation for many of his vetoes:

While this budget bill provides for a modest reserve in 2008-09, it fails to make the necessary statutory spending reductions and revenue increases needed to eliminate the state's structural budget deficit going forward. At the same time, constitutional requirements, federal law and court required payments drive the majority of the spending in any budget, and limit my ability to reduce spending. As a result, I have an obligation to reduce spending when my veto power is adequate to do so. Consequently -- and in order to further ensure that this budget remains in balance -- I am taking the difficult but necessary action reflected in this veto to further control state spending.

I'll be attaching statements I receive from organizations and unions about this budget in the comments section of this post.

I'd love to hear your thoughts as well.

 

Posted in these Groups: Health & Wellness, News, Politics
Topics: health, Politics, Schwarzenegger, sacramento, state budget, Medi-Cal, public health
posted by ThePulse on Tuesday, September 23, 2008 at 08:13 PM
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posted by ThePulse on Sep 23, 2008 at 08:18 PM

From the California Academy of Family Physicians:

Citing the record-setting budget delay and changes to the Medi-Cal program that will plunge an estimated 250,000 children into the ranks of the uninsured, family physicians today said the process and result of this budget show that “the California state government is ill prepared to be a good partner with us in the delivery of health care to poor Californians.”

“Our mission is to keep the people of our state healthy,” said Jeffrey Luther, president of the 7,000-member California Academy of Family Physicians. “This budget shows us the State does not fully share that commitment.”

“The long delay in Medi-Cal payments to clinics where family physicians provide care, for example, was an unacceptable business practice,” Luther said. “It’s unrealistic to believe small businesses can withstand this kind of cash flow crunch without compromising patient care.” Many clinics and other providers cut staffing and hours. Some feared going out of business entirely.

In addition, “instead of investing in children’s health,” Luther said, “the State is increasing Healthy Family premiums for families struggling economically and implementing bureaucratic hoops designed to prevent full enrollment in the Medi-Cal program.”

Healthy Families is a state-run program that provides health insurance for children and teens whose families do not qualify for free Medi-Cal coverage. Under the new budget plan, families whose children's health care coverage is provided by Medi-Cal will be required to re-enroll their children twice a year, up from the current once-a-year sign-up option. Studies in other states that have increased re-enrollment requirements show that it results in decreased participation in the program for children who are eligible. “Simply put, when impoverished families have to pay more than they can afford or re-enroll more often, kids lose their insurance and therefore their health care,” Luther said.

The new budget also calls for a 10% cut in payment through February 28, 2009 for physicians who provide medical care to patients in the Medi-Cal program. “We currently are protected by a court order that requires the State to rescind these cuts because of the ‘irreparable harm’ patients would suffer because of a lack of continued access to care,” Luther explained. “The State, however, is fighting this case and still fully intends to make payments so low that many physicians will be unable to continue seeing Medi-Cal patients.”

Luther also said other changes, such as new requirements for the Rainy Day Fund, “will make paying for health care an even lower priority for the State than it already is.”
 “Under the new budget, family doctors are left fighting for patient care instead of partnering with the State of California to improve and maintain public health,” Luther said. “Unless they’re healthy, the children and families of our state can’t pursue education or any other goal – we believe health care is the number one priority and regret that our elected leaders don’t seem to share that value.”

posted by ThePulse on Sep 23, 2008 at 08:22 PM

From Anthony Wright, executive director of Health Access California:
 
With his line item vetoes, the Governor has made a bad budget worse. The additional cuts would deny discounts on drugs for potentially millions of Californians, and make it even harder to get and stay on Medi-Cal coverage.
 
On children's health coverage, prescription drug prices, and other health issues, the Governor has taken a significant step backwards, undoing any progress he has made.
 
Cuts to health care include:

  • Delay (elimination in budget) of program to negotiate discounts for medications
  • Cuts to county administration of Medi-Cal, at the same time that paperwork requirements are increasing.
posted by adampayne on Sep 24, 2008 at 08:37 AM

Thanks for providing the pertinent results of the budget regarding health in California. For me this excerpt says it all:


-The new budget also calls for a 10% cut in payment through February 28, 2009 for physicians who provide medical care to patients in the Medi-Cal program. “We currently are protected by a court order that requires the State to rescind these cuts because of the ‘irreparable harm’ patients would suffer because of a lack of continued access to care,” Luther explained. “The State, however, is fighting this case and still fully intends to make payments so low that many physicians will be unable to continue seeing Medi-Cal patients.”-

Everyone knows that the existing payments to physicians who accept Medi-Cal are already woefully below market value, and have contributed to a shotage of doctors willing to see patients (elderly and poor) who rely on this program for their health needs. The forced compromise by a small minority of Republican legislators means payments will now be even less and more physicians will say no to those on Medi-Cal. It is so ironic that legislators, who fail by their actions to protect the health and safety of California citizens, are fully covered for all health care costs. 

I believe a new Proposition for the state ballot is in order. My Proposition will call to strip away all health care coverage for all elected officials and civil servants in California. All employees, whether elected, appointed or hired for the state and local governments can join the ranks of the privately employed  and unemployed in obtaining their own health care coverage at fair market prices. The savings for all of us living in this state not on the tax dole will be enormous. Think of the infrastructure improvements that can be had with no health care benefits for current and retired state officials and employees to pay for.

We'll call this Proposition the Fair Health Care For California Proposition. Instead of worrying how we will ever be able to afford great health insurance for all, we can just remove by vote those people from the rolls that receive all the best benefits at the lowest possible price. It  is a win win for California's working poor.

I wonder why I hadn't thought of this earlier? If I can't ever get any good benefits at an affordable price, why should you?

posted by ThePulse on Sep 24, 2008 at 10:29 AM

Enrolling legislators in Medi-Cal would definitely be interesting.

Thanks for the comment, AP.

posted by jfrancais on Sep 24, 2008 at 11:34 AM

This is what happens when you run a government for years without sticking to the budget. He even goes on to say how the cuts still don't even adequately address the deficit spending. Someone was going to end up angry at the outcome. 

I like the idea of enrolling legislators in Medi-Cal, though.

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