Medicaid, SCHIP To Lose With California Budget Plan

There may be reduced federal matching funds in the offing for Medicaid and SCHIP as a result of the California Budget Plan. The reduction in federal matching funds for California could be about $1.5 bn. This is the result of Gov. Arnold Schwarzenegger’s proposed 2008-09 budget. This finding is based on an analysis by the Assembly Budget Committee.

The State’s Medicaid program, Medi-Cal is to recieve only $13.6 bn – a reduction of about $1 bn. Medi-Cal reimbursements would be reduced by 10 percent for physicians and hospitals. These reimbursements are already the among the lowest in the nation. Two thirds of Healthy Families (California’s SCHIP) would end up paying higher premiums.

According to the budget most dental services would be eliminated and there would be cuts to HIV/AIDS drug assistance and prevention programs. Matching federal money for Healthy Families would be cut to the tune of $76.1 mn. Also each child under Healthy Families would recieve dental coverage of not more than $1000. Premiums would increase by $3 per child.