Policy Update: Medi-Cal Payments Frozen

DATE:   August 1, 2007
TO:     Delegate Agencies, Board of Directors, Advocates and Staff
FROM:   Jody Leibman, Director of Public Policy
RE:     Policy Update:  Medi-Cal Payments frozen until CA budget is passed   

MEDI-CAL PAYMENTS FROZEN UNTIL CA BUDGET AGREEMENT IS REACHED:
URGE YOUR STATE SENATOR TO FINALIZE THE BUDGET SO OUR CLINICS CONTINUE TO RECEIVE FUNDING!

CFHC feels it imperative to let you know what fiscal impact the current budget stalemate may have on your clinic and community.

As of today, the state of California is over thirty days into a new fiscal year without an operational budget.  While the Assembly finished their version and left for a summer hiatus, the Senate has yet to gather the votes necessary to pass the budget for the Governor’s signature.  Because there is no current budget, the state is running on reserve funds.

Unless there is a budget agreement this week, Medi-Cal payments will be frozen starting August 2, 2007.   

While we know this news is distressing, CFHC wishes to keep you up to date as to what is occurring in Sacramento.  The most current information is that the state Senate is scheduled to meet this evening to see if they can reach agreement on the 2007 – 2008 budget. 

CFHC is working in coalition to urge the Senate to finish the budget process and move forward.  Now, we ask that you help us by urging your State Senator to stop the stalemate, pass the budget, and avoid the serious harm that an ongoing lack of Medi-Cal funding can and will have on our clinics and communities throughout the state.

Attached is a sample letter to send to your State Senator.  Be sure to include information specific to what will occur within your clinic or community, or to your patients, should the stalemate continue.  To find out who your State Senator is, click here.

For now, we ask that you continue to submit your billing in the usual manner.  We will keep you updated as we receive new information.

If you have any questions or would like further information, contact Jody Leibman, Director of Public Policy, at leibmanj@cfhc.org or (213) 386-5614 ext. 4416.

**SAMPLE LETTER***

August__, 2007
Senator___________
Sacramento, CA

Re: Stop the Budget Stalemate and Preserve California’s Clinic Safety Net! 

Dear Senator____________,   

On behalf of [ORGANIZATION], I am writing to urge you to stop the budget stalemate and ensure that Californians across our state receive the basic clinical health care services they need. 

It is our understanding that if the Senate does not pass the budget this week, Medi-Cal payments will be frozen as of August 2, 2007 – and will not be made available until the Assembly returns on August 20, 2007, negotiations resume, and the budget is passed.  Our clinic(s) could feasibly be without Medi-Cal funding for a month or even longer if the budget stalemate is not resolved this week.

Any suspension of Medi-Cal funding will have a devastating impact on the system of clinics across our state who provide care to hundreds of thousands of underinsured and uninsured Californians - Californians with nowhere else to go to obtain the most basic of health care services.

In our clinic/community, [INSERT DESCRIPTION OF IMPACT SUSPENDED MEDI-CAL FUNDING WILL HAVE – INCLUDE SPECIFIC/PERSONALIZED EXAMPLE(S) IF POSSIBLE].

We urge you and your colleagues to pass California’s fiscal year 2007 – 2008 budget this week so that we may continue with the critical health care services we provide to so many Californians.

Sincerely,

[NAME/TITLE]
[ORGANIZATION]