CHA News Article

DHCS Issues Analysis of Senate Health Care Bill

The California Department of Health Care Services (DHCS), in collaboration with Covered California and the California Department of Finance, last week issued an analysis outlining the impact the proposed Graham-Cassidy amendment would have on California. Calling the proposal “the most devastating of the three federal health care proposals… evaluated this year,” DHCS projects that California would lose $138.8 billion in federal funding from 2020 through 2027. Notably, the amendment would fundamentally change the federal-state partnership established by Medicaid 50 years ago by changing the program’s funding methodology to a per capita spending limit based on historical data.

DHCS’ most significant concerns include:

  • Shift in federal financing to per capita limit
  • Elimination of federal funding for expansion
  • Time-limited state block grant program
  • Elimination of enhanced funding for In-Home Supportive Services
  • One-year ban on Planned Parenthood participation in Medicaid
  • Elimination of hospital presumptive eligibility
  • Reduced levels of California’s provider fee on skilled-nursing and other long-term care facilities

According to DHCS, the amendment also concentrates the biggest cuts in states that expanded coverage, relying on federal promises of continued support. California, which saw the biggest reduction in its uninsured rate under the Affordable Care Act, would see the biggest cuts under Graham-Cassidy.

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