Governor Brown’s $96.4B Revised Budget Expects More Medi-Cal Spending

On Tuesday, Gov. Jerry Brown (D) released his revised budget proposal for fiscal year 2013-2014, the New York Times reports.

The revised $96.4 billion spending plan is a $1.3 billion reduction from the initial spending plan that Brown announced in January.

The governor said economic growth has been slower than he previously expected because of federal budget cuts and a higher payroll tax on employees.

Compared with last fiscal year, Brown's budget plan anticipates $1.2 billion more in Medi-Cal spending to implement Affordable Care Act provisions. Medi-Cal is California's Medicaid program.

According to the budget plan, individuals who are newly insured under the state's Medi-Cal expansion would be offered the same benefits as individuals who already are covered by the program. In his initial budget plan, Brown did not include coverage for stays in rehabilitation facilities and other long-term care services for newly eligible beneficiaries.

The revised plan also would permanently impose a tax on Medi-Cal managed care plans equivalent to the state sales tax rate, which would save the state about $343 million.

In addition, Brown's revised plan includes a 10% cut to Medi-Cal provider reimbursements that currently is stalled in litigation.

Meanwhile, the revised budget plan does not restore Denti-Cal benefits for adults, as some lawmakers had hoped. Denti-Cal is California's Medi-Cal dental program.

Read more here.

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