4260 Department of Health Care Services
Major Program Changes
  • Medi-Cal Cost Containment Strategies - The Budget includes $791 million in savings because of a number of program changes, including limits on services and utilization controls ($234 million) and providing for increased beneficiary cost sharing ($557 million).

  • Six Month Hospital Fee Extension - The Budget includes $160 million in General Fund savings in 2010-11 by extending the existing hospital fee through June 30, 2011 and using fee revenue to offset General Fund expenditures in Medi-Cal for children's health services; consistent with existing policy.

  • Program Reductions - The Budget includes $886 million in reductions by: (1) Reducing nursing home rates by 10 percent ($196 million), (2) Court approval of past 10 percent provider rate reductions ($537 million), and (3) Eliminating the optional Adult Day Health Care benefit ($177 million).

  • Alternative Funding - The Budget includes $1.84 billion in alternative funding to offset General Fund costs in Medi-Cal. This includes use of $1 billion in Proposition 10 (First 5 Commission) reserves and $840 million in Redevelopment Agency funds.

  • Health Care Reform Implementation - The Budget includes $2.1 million ($949,000 General Fund) for 17 two-year limited-term positions to carryout workload activities required to implement federal health care reform. Reform goals include expanding coverage, making health care affordable, and improving health outcomes.