Months of negotiations among the state’s top health care players have ended in a plan to pump billions into Medicaid and struggling hospitals.
The complex agreement, reported by POLITICO for the first time, resolves a sticking point in budget talks that lawmakers and Gov. Gavin Newsom have been working to resolve by June 30. | Justin Sullivan/Getty ImagesSACRAMENTO, Calif.
After federal funds are factored in, the state will be able to spend north of $35 billion, said Jennifer Kent, a former administration official who helped the coalition propose a structure for the tax.“We’re trying to serve a Medi-Cal program that’s the size of some states’ total population,” said Linnea Koopmans, CEO of the Local Health Plans of California, who was part of the coalition. “It takes an investment of this magnitude to have a meaningful impact.
“There was a lot of sausage making,” Corcoran said. “It’s not always pleasant or fun, but we landed in a spot we can be really proud of.” At one point, the Newsom administration wanted the bulk of the money to go into the general budget to fund existing priorities in Medi-Cal, like expanding the program to eligible undocumented immigrants. In May, he outlined a plan to boost reimbursement rates for some specialties, balance the budget and stash the rest of the money away to be doled out over the course of several years.
“Instead of just coming to the Legislature for our individual needs, this is a way to really look at things in a more holistic way for patients,” said Jodi Hicks, the CEO of Planned Parenthood Affiliates of California and the vice-chair of the coalition.
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