California Medi-Cal status update:
The California Orthotic and Prosthetic Association continues the battle
to preserve the Orthotic and Prosthetic benefits under Medi-Cal.
On March 23, 2010 COPA’s executive director and lobbyist, Bryce
Docherty, testified before the Senate Budget Subcommittee on Health.
(Video of the hearing will be posted as soon as available) Of the nine
optional benefit categories, COPA was one of five provider groups
identified to testify. All were provided a combined total of ten (10)
minutes to plead their case (90 seconds to each entity). COPA remains
part of a coalition of nine optional benefit categories slated for
elimination. The governor’s budget proposal will become effective with
the fiscal year beginning July 1, 2010 unless other revenues are
identified to replace the cost of these benefits.
The testimony before the Senate Budget Subcommittee on Health was only
the first step in what appears to be a long uphill battle. Upcoming
procedural steps will include: Assembly Budget Subcommittee on Health,
(possibly as early as April 19) followed by the full Senate and Assembly
Budget Committees. Each arena poses its own challenges and must “reject”
the governor’s proposed budget elimination of Orthotic and Prosthetic
benefits.
Once these committees have rejected the budget reduction, California
faces it recurring annual budget negotiation. This will likely be a
protracted battle as a result of the Legislature’s inability to balance
the budget without resorting to accounting maneuvers. They have merely
“kicked the can down the road”. The can has now stopped and must be
picked up. The Legislature has not shown the resolve required to
increase taxes, nor are there increasing sales and property tax revenues
to cover increased general fund expenditures.
Medi-Cal optional benefit categories receive federal matching dollars.
The projected $550 million in savings reflect only $225 million in state
funds. O&P represents approximately $20 million of the projected
savings. At present California receives an approximate 50.3% match for
the optional benefit categories, other states receive as high as 63%.
Governor Schwarzenegger has requested the federal match be raised to the
national average of 57%. Increasing the federal matching dollar
percentage to 57% would cover the budget shortfall.
The Legislature has unfortunately shown the resolve to eliminate other
optional benefits under Medi-Cal including: Chiropractic, Adult Dental
(a sacred cow in years past) and optometry (another sacred cow).
The recent national health care reform package includes several mandates
which increase the eligibility standards for Medicaid and Medi-Cal. The
increased eligibility will increase the cost to the states, particularly
California. The cost of these mandates to California is not yet clear,
and will impact the decisions made by the Senate and Assembly Budget
Committees.
COPA continues the battle.
Ralph W. Nobbe, CPO
President, California Orthotic and Prosthetic Association
[email protected]
