EDITORIAL: How to spend California's cigarette tax. And don't forget women's health - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 5, 2017 Newswires
Share
Share
Tweet
Email

EDITORIAL: How to spend California’s cigarette tax. And don’t forget women’s health

Sacramento Bee (CA)

May 05--Between Congress and Sacramento, it is now clear that the capacity to play politics with health insurance is boundless. Not so the resilience of those who most need coverage.

A week-and-a-half ago -- as Washington plotted another cruel shot at the Affordable Care Act and state lawmakers fought over a cigarette tax windfall -- a clinic that for 30 years had been a refuge for Sacramento-area women quietly closed, thanks to a scenario that is all too familiar to Medi-Cal providers.

Women's Health Specialists, like Planned Parenthood, California's better-known family planning nonprofit, had offered subsidized contraception, STD testing, legal abortion and other reproductive health services. About 80 percent of its clients paid via Medi-Cal, which is to say they were mostly low income.

Like Planned Parenthood, Women's Health served people who were often young, homeless or in crisis despite sometimes violent ideological and religious opposition. In the end, however, what shuttered Women's Health Specialists wasn't the poverty of the 10,000 patients it served annually or the picketing of its staffers.

It was the difficulty it encountered in paying its nurse practitioners and doctors, due largely to California's rock-bottom reimbursement rates for Medi-Cal providers. When a physician only gets paid $50 for a $100 doctor's visit -- or $300 for a $1,500 surgical procedure -- the arithmetic eventually speaks for itself.

Low reimbursement rates have been a chronic complaint among doctors who take Medi-Cal patients. California's rates haven't appreciably risen since the recession, though the need for Medi-Cal providers has grown exponentially since eligibility was expanded under Obamacare.

More than a third of the state, 14 million people and counting, are insured under Medi-Cal, which is what Medicaid is called in California. But finding doctors willing to endure the program's red tape and often meager scale of payment is notoriously difficult.

Frustration this year is especially intense because a voter initiative passed in November -- Proposition 56 -- had promised a solution. A $2-per-pack bump in the tobacco tax, pushed over the finish line by doctors, dentists, Planned Parenthood and other providers, was supposed to generate more than $1 billion in desperately needed new Medi-Cal funding. That, in turn, was supposed to underwrite an increase in reimbursement rates and encourage more doctors to accept Medi-Cal.

Instead, events have conspired to create a fresh health insurance skirmish between providers who want and need those higher rates and Gov. Jerry Brown, who, for a variety of also good reasons, wants to use the Proposition 56 money to buttress Medi-Cal's overall budget.

Brown, as usual, is pushing fiscal prudence. Republicans in Congress so far have been unable to completely gut the Affordable Care Act, but the disgraceful replacement voted on by the House this week makes it clear that even if it means never being able to look at themselves in the mirror again, they're still trying. Given the volatility of the Trump administration, it's wise not to take anything for granted.

If worse actually were to come to worst, California would lose about $24 billion in federal funds over the next decade for millions of patients insured through the Obamacare Medicaid expansion. And even if nothing changes, those millions of patients are still growing. More than 164,000 Californians are expected to be added to the Medi-Cal caseload in this state by 2018.

So it's understandable that Brown would want to maximize flexibility and reserve the option to use the Proposition 56 money to secure the overall Medi-Cal system. The problem is, the shortage of Medi-Cal doctors is too serious to put it off anymore.

California's push to get Medi-Cal patients into managed care has beggared independent physicians such as those at Women's Health Specialists and other such specialty clinics, which, whatever their mission, often are viewed by the poor as the only alternative to expensive emergency room visits. Even doctors who take Medi-Cal Managed Care, where the rates are typically a bit higher, often take only a limited number of such patients, fearing that Medi-Cal reimbursement alone won't support their practice.

Dental reimbursements are so far below the national average in California that a 2014 state audit found that five counties had no Denti-Cal providers and 11 others were refusing to take new patients. Last year, fewer than half the children on Denti-Cal and fewer than 1 in 10 adults got any preventative dental care.

That has to change. Surely the state can do some of both -- boosting the overall system but also bumping up reimbursement in a targeted manner. Certainly dentists should get a rate hike, and money should be set aside for specialty providers such as Women's Health Specialists, which is still struggling to operate three desperately needed clinics in rural Northern California, and Planned Parenthood, which is under congressional attack. Some of the money also should be used to fully restore dental, vision, speech therapy and some other benefits cut during the recession.

Like it or not, voters passed Proposition 56 in the hope that it would improve access to care in the program that insures, now, a third of California. Given the onslaught in Washington against the values that unite us, this is no time to fight over the fine print.

Sign up

Get on The Take. Read the influential voices on California and national politics and issues. Sign up here.

___

(c)2017 The Sacramento Bee (Sacramento, Calif.)

Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com

Distributed by Tribune Content Agency, LLC.

Older

Squaremouth Extends Unique Zero Complaint Guarantee to Subscribers of International Travel News

Newer

GOP Health Bill Could Boost Costs For Those In Employer-Sponsored Plans

Advisor News

  • CFP Board appoints K. Dane Snowden as CEO
  • TIAA unveils ‘policy roadmap’ to boost retirement readiness
  • 2026 may bring higher volatility, slower GDP growth, experts say
  • Why affluent clients underuse advisor services and how to close the gap
  • America’s ‘confidence recession’ in retirement
More Advisor News

Annuity News

  • Insurer Offers First Fixed Indexed Annuity with Bitcoin
  • Assured Guaranty Enters Annuity Reinsurance Market
  • Ameritas: FINRA settlement precludes new lawsuit over annuity sales
  • Guaranty Income Life Marks 100th Anniversary
  • Delaware Life Insurance Company Launches Industry’s First Fixed Indexed Annuity with Bitcoin Exposure
More Annuity News

Health/Employee Benefits News

  • Investigators from Stanford University Target Economics (Exogenous Exits, Market Structure, and Equilibrium Contracts In Health Care): Economics
  • Reports Outline Opioids Findings from University of Pennsylvania School of Nursing (Buprenorphine dosing patterns and treatment outcomes for patients with opioid use disorder insured by Medicaid in Philadelphia): Opioids
  • Reports Outline Managed Care Findings from Harvard University (Community-Entry Home Health Made Up Nearly Half Of Home Health Episodes And Spending In Traditional Medicare, 2017-21): Managed Care
  • Reports Outline Insurance Study Results from RAND Corporation (The Unaffordability of Affordable Care Act Health Insurance Plans): Insurance
  • Recent Reports from National Yang Ming Chiao Tung University Highlight Findings in Women’s Health (Health-care utilization after domestic violence: A nationwide study in Taiwan comparing individuals with and without intellectual disability): Women’s Health
More Health/Employee Benefits News

Life Insurance News

  • Symetra Marks 50 Years as a Stop Loss Leader
  • AM Best Affirms Credit Ratings of Meiji Yasuda Life Insurance Company
  • A decade in decline: PHL Variable serving as a cautionary tale
  • Conn. Insurance Dept. answers questions on PHL Variable’s $2.2B plight
  • Insurer Offers First Fixed Indexed Annuity with Bitcoin
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

8.25% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • ePIC Services Company and WebPrez Announce Exclusive Strategic Relationship; Carter Wilcoxson Appointed President of WebPrez
  • Agent Review Announces Major AI & AIO Platform Enhancements for Consumer Trust and Agent Discovery
  • Prosperity Life Group® Names Industry Veteran Mark Williams VP, National Accounts
  • Salt Financial Announces Collaboration with FTSE Russell on Risk-Managed Index Solutions
  • RFP #T02425
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet