News Headlines Article

Schwarzenegger proposes deep healthcare cuts
Modern Healthcare

California Gov. Arnold Schwarzenegger is proposing significant cuts to health services, including a hospital payment rate freeze, in his May revised budget proposal to help close a $19.1 billion deficit. The budget plan includes a $523 million cut to Medicaid—called Medi-Cal in the state—in service caps and increased cost-sharing. Hospital Medi-Cal rates would be frozen at the current level for a savings of $64.9 million.