Some healthcare industry leaders are pushing to make California's largest-ever investment in Medi-Cal permanent, KFF Health News reported July 21.
Some industry groups are quietly pushing for a 2024 ballot initiative to make increases in reimbursements for providers permanent, over concerns funding for the program may be diverted to other sources, according to the report.
In June, California lawmakers and healthcare stakeholders reached an agreement on a $35 billion deal that boosts funding for Medi-Cal. The state's Medicaid reimbursement rates are some of the lowest in the country, according to KFF.
The increases are funded in part by a renewed managed care tax on health plans based on how many members they cover. Because the funds are directed to the state's general fund, there's no guarantee they won't eventually be diverted to other programs, according to KFF.
"Even with this historic deal, there are still parts of the healthcare system that are going to struggle to provide the care that patients need," California Medical Association CEO Dustin Corcoran told KFF. "The coalition is dedicated to ensuring long-term stability and predictability in reimbursement rates in California."
Read the full report here.