News Headlines Article

Governor proposes Medi-Cal rate increase for health plans, not providers
Sacramento Business Journal

Gov. Jerry Brown’s revised budget proposal puts $125 million into rate increases for Medi-Cal managed-care health plans, but includes nothing for providers.

The lack of provider rate relief despite a state’s budget surplus brought a swift reaction from a broad coalition of providers and others that launched a $10 million media campaign this week to convince lawmakers and the governor to increase Medi-Cal provider pay.

“Hospitals and other providers are paid by Medi-Cal at rates substantially below Medicare, placing health-care providers and their patients in a precarious situation,” Duane Dauner, president and CEO of the California Hospital Association, said in a news release. Pay cuts in 2011 put California rates close to worst in the nation — and this affects access to care as more providers drop out of the program, coalition members say.