Industry groups in California vie for new Medicaid money
But the intense jockeying over the money is only beginning.
Top state health officials say they plan to plow most of the money into higher payments for doctors, hospitals, and other health care providers who serve Californians covered by
Even as they battle for their share, industry leaders are quietly plotting a
"We are addressing decades of systemic underfunding in Medicaid that has exacerbated inequity and health care provider deserts, where patients are often forced to get their care in emergency departments," said
Corcoran also leads the coalition negotiating with Gov.
"Even with this historic deal, there are still parts of the health care system that are going to struggle to provide the care that patients need," Corcoran said. "The coalition is dedicated to ensuring long-term stability and predictability in reimbursement rates in
"That's where the state is struggling the most," she said. "Low rates are why a physician may not accept
This deal funds the largest increase in base
The money will come from the managed care organization tax, which has been levied since 2005 on health insurers that do business in
Under the deal, and for the first time, Newsom and the legislature have agreed to use the money to improve care for poor Californians. Of the
The new funding will start flowing next year, with
From 2025 through 2029, the state plans to allocate nearly
But the bulk will go to rate increases for primary care and an array of providers and services, including hospitals and long-term care facilities, abortion care, and emergency services. Higher rates for specialists, such as psychiatrists and dentists, are also desperately needed.
Although Newsom and state health officials have promised to direct the money to health care providers, they haven't specified which ones will get increases — and there's no guarantee the money won't be diverted to another program.
"There has to be more guardrails," said Assembly member
"The core providers in Medicaid will benefit," Ghaly told
Ghaly said the tax will bring some Medicaid rates in
Even though the tax deal isn't big enough to fix all the problems in
"There's a lot more work to do hammering out the rate increases and where they should go," Bacchi said. "We have to make sure that the funding actually survives the budget process next year."
Some providers worry they may be left out.
"We've argued hard for optometrists to be included," said
As a result, she said, patients "are not able to get in for months."
"I've been practicing over 20 years and I do not accept
Detailed rates for most health care treatments for
While
As health care providers battle for their slice of the tax revenue, they say they want to avoid the same lobbying fight each time the state renews the tax, which happens every few years. One option they are considering: a ballot initiative next year that would lock the
Bacchi declined to take a position on the concept but said insurers are "taking a look at it." He argues that
"The pandemic showed us that inequality is a life-and-death matter, because if you look at the people who got sick the most and died, they were people of color," he said. "If we continue to ignore that, we're idiots."
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