4260 Department of Health Care Services
Major Program Changes
  • Federal Funding - The Budget includes $4.0 billion in General Fund savings due to increased federal funding, which includes advocating for the following: (1) $1.8 billion by increasing California's base Medi-Cal federal funding to 57 percent, (2) $1.2 billion by continuing the enhanced funding provided by the American Recovery and Reinvestment Act of 2009, and (3) $1.0 billion through continued federal flexibilities.

  • Medi-Cal Cost Containment Strategies - The Budget includes $750 million in savings as a result of a number of program changes, including limits on services and utilization controls providing for increased beneficiary cost sharing, and other programmatic changes similar to what other states are doing.

  • AB 1383 - The Budget includes $560 million in General Fund savings by using Chapter 627, Statutes of 2009 (AB 1383) fee revenue to offset General Fund expenditures for children's Medi-Cal coverage (AB 1383 allows up to $80 million per quarter for this purpose). This is based on all seven quarters of revenue being available in 2010-11.

  • Program Reduction - The Budget includes $292 million in reductions by: (1) Eliminating full scope benefits for certain immigrants ($118 million), (2) Eliminating the optional Adult Day Health Care benefit ($104 million), (3) Deferring one weekly payment to institutional providers ($55 million), and (4) Rescinding a statutory rate increase for Family Planning services ($15 million).

  • Anti-Fraud Initiative - The Budget includes $26.4 million in net savings by establishing 38 positions to implement an anti-fraud initiative focused on areas of potential concern such as pharmacy, transportation, medical equipment, and physician services.