CHA News Article

CHA Files Ballot Initiative to Protect Medi-Cal Funding
Measure will ensure hospital fees, matching federal dollars are used for health care services

Since 2009, California hospitals have agreed to pay the state nearly $3 billion annually, which the state then uses to draw down matching federal funds for the Medi-Cal program. As part of the agreement, hospitals have supported the state taking a small portion of the fee money to pay for health care for children. Since the inception of the program, however, the state has diverted some of the hospital fee money to the state’s General Fund for other purposes.

“Unfortunately, it is too tempting for lawmakers on both sides of the aisle to dip into these funds as part of the budget process,” said CHA President/CEO C. Duane Dauner. “These monies are intended to help cover the costs of caring for the state’s Medi-Cal patients, and it’s only appropriate that safeguards are put in place to assure that’s how the funds are used.”

Once the AG’s office issues the measure’s “Title & Summary,” CHA will begin collecting signatures to qualify the initiative for the November 2014 ballot. Approximately 800,000 qualified signatures will be needed to place the measure before voters. To view CHA’s press release about the initiative, visit