Friday, September 05, 2008
Health Care Providers Hit Hard by Budget Impasse
California's longest budget standoff on record is increasing pressure on California health care providers -- many of whom cannot be paid without a state budget.
If lawmakers cannot agree on a budget by the end of the month -- a likely scenario according to many in Sacramento -- the state will owe $12 billion to government service providers.
State controller John Chiang (D) said $4.3 billion in scheduled payments already have been blocked, and a total of $11.9 billion ultimately could be blocked if no agreement is reached by Sept. 26. Service providers across the state have said further delays could put them on the brink of bankruptcy.
Some health care providers who rely on state reimbursements have borrowed money to make ends meet. Others relied on an emergency fund used to pay Medi-Cal providers when the state operates without a budget. But that pot ran dry more than a month ago.
State law prohibits certain payments from being made in the absence of a budget, so for providers of those services, the outlook is grim.
Gov. Arnold Schwarzenegger (R) rejected a proposal to release emergency funds this week, calling the plan fiscally irresponsible.
The Republican proposal also called for cutting health care benefits for undocumented immigrants and documented immigrants who have been in the U.S. for fewer than five years.
Medi-Cal
Sen. Ron Calderon's (D-Montebello) SB 1147 would make changes to Medi-Cal coverage rules for juveniles who are inmates. Instead of terminating their Medi-Cal coverage, the bill would instead suspend coverage in hopes of easing Medi-Cal administration (Bill text, 8/8).
Hospitals
Under AB 13 by Assembly member Julia Brownley (D-Woodland Hills), each year, hospitals would have to prepare staffing plans for licensed technical positions, excluding nurses. The reports would have to be submitted to state regulators (Bill text, 8/22).
SB 1151 by Senate President Pro Tempore Don Perata (D-Oakland) would require hospitals to develop policies to identify patients who should be moved using lift teams or other lift devices. The measure also would require hospitals to use lift teams or devices to reduce back injuries among hospital personnel (Bill text, 8/8).
Health Plans
AB 1894 by Assembly member Paul Krekorian (D-Burbank) would require health plans to cover HIV tests, even if the test was not ordered as part of a primary diagnosis. The requirement would take effect on Jan. 1, 2009 (Bill text, 6/24).
theWEEKLY
Each Friday, California Healthline compiles a roundup of the week's news and events, as well as a preview of what to watch for in the week ahead. Here you'll find links to the week's top stories, a look at what's happening in the California legislature and a biweekly digest of recent health policy studies in prominent research journals.
EDITORS' PICKS OF THE WEEK
09/04/2008
Legislature OKs Health Insurance Bills; Governor's Action Unclear
09/04/2008
Budget Impasse Holds Up $4 Billion in Payments to Health Providers, Others
09/04/2008
Federal Judge Amends Medi-Cal Reimbursement Rate Reduction Ruling
09/02/2008
Health Care Bills Clear California Legislature as Session Wraps Up
09/02/2008
Budget Debate Stretches On; Health Care Facilities Say Closures Possible
09/02/2008
California Children at Risk of Losing Health Insurance Coverage
09/03/2008
Insurers Criticize Proposed Cap on Profit, Administrative Costs
09/04/2008
Companies Plan To Shift More Health Care Costs to Workers, Survey Finds
09/03/2008
San Diego-Based Research Institutes Win Record Grants From NIH
09/04/2008
Program To Provide $200M in Capital Health Funding