During the past year, the .US Department of Health and Human Services (HHS) has issued a number of regulations that would have made dramatic changes to Medicaid policies and eliminate or reduce federal Medicaid funding to the states for a number of services and programs.  

The regulations have significant impact on children and adults with disabilities, mental health needs, seniors and others who receive Medi-Cal services in California, and also those who provide services and supports. 

 

Measure Titled "Protecting the Medicaid Safety Net Act of 2008"

* Senate Finance Committee Chair Max Baucus (Democrat - Montana). praised HR 5613, and said he intended to

work with senators "on strategies to stop harmful Medicaid regulations as well."

* US Sen. Charles Grassley (Republican - Iowa), opposing the delay of the 7 Medicaid regulations said that "It is an absolute farce for anyone to argue that all of those dollars are being appropriately spent and that Congress ought to just walk away from these issues."  He believes that the US Senate Finance Committee should fix any problems instead of "...just trying to make the [federal Medicaid] regulations go away".

The federal regulations come at a time when California is facing an  enormous and still growing budget shortfall, resulting in over $1 billion worth of cuts to the Medi-Cal program beginning July 1, 2008 in permanent Medi-Cal 10% rate reductions for most Medi-Cal providers, including Adult Day Health, durable equipment providers and others, and proposals to eliminate several (but not all) of the Medi-Cal "optional benefits". 

 

The California Legislature approved a package of special session bills in February that included a 10% rate reduction of most Medi-Cal providers as proposed by the Governor, though with an effective date of July 1, 2008 instead of June 1, 2008.  

 

The Legislature has not yet taken final action on other proposed reductions to the Medi-Cal program, including permanently eliminating 11 Medi-Cal "optional benefits" and reinstating Medi-Cal quarterly status reports. 

 

Unlike those cuts however, Schwarzenegger Administration officials, Democratic state legislative leaders, counties, advocates are united in opposing implementation of the federal Medicaid regulations that would mean the loss of billions of dollars to the states. 

 

Lawsuit Filed To Stop California Medi-Cal Cuts

A lawsuit was filed in Los Angeles on on Tuesday (April 22) to stop the Medi-Cal rate cut (go to CDCAN website at www.cdcan.us for copy of suit and see separate CDCAN Report for details). 

 

Meanwhile the County of San Francisco and possibly other counties and advocacy groups indicated they will file a law suit to stop the provider rate cut. 

 

Federal Medicaid Regulations Covered by HR 5613