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Brown proposes deep cuts in health, social service programs

By Daniel Weintraub

Gov. Jerry Brown’s budget proposal calls for deep cuts in health and social service programs that form California’s safety net.

Brown wants to cut $1.7 billion from Medi-Cal, 1.5 billion from CalWorks, and $750 million from the Department of Developmental Services.

Brown would limit access to Medi-Cal services, including prescription drugs, and place stricter time limits on welfare. He also proposes to limit reimbursements for home care for people who need help with daily living so they can remain in their homes and not in an institution.

Although many of the cuts Brown proposed mirror those offered in recent years by former Gov. Arnold Schwarzenegger and rejected by Democrats in the Legislature, Democratic leaders muted their early reaction. Republicans, meanwhile, praised the spending cuts but attacked the part of Brown’s proposal that would ask the voters to extend billions of dollars in temporary tax increases for another five years.

Without those taxes, the cuts Brown proposed Monday would have to dig twice as deep.

Brown’s Medi-Cal cuts would affect millions of low-income families and people with disabilities. He would limit doctor and clinic visits to 10 per year, limit non-life-saving drugs to six prescriptions per month, and set dollar caps on medical supplies, including wheelchairs, hearing aids, wound care and incontinence supplies.

The governor’s proposal would also charge Medi-Cal patients $100 a day, with a $200 maximum, for hospital stays, a $50 copayment for ER visits and $5 co-pays for trips to a doctor, clinic, dentist or to a pharmacy to fill a prescription.

Brown also proposes to reduce reimbursements to doctors, clinics and hospitals by 10 percent, even though California’s rates already are among the lowest in the country and the change would probably mean even fewer doctors would take Medi-Cal patients.

Finally, Brown’s budget would eliminate adult day care health benefits for 27,000 patients.

In Healthy Families, the subsidized insurance program for low-income working families, Brown proposes to increase monthly premiums by 75 percent for families with incomes between 200 and 250 percent of the federal poverty level and nearly double them for families between 150 percent and 200 percent of the poverty level. These increases would affect more than a half million California children. He would also raise ER co-pays and fees for hospital visits while eliminating vision care for children.

Brown is proposing to reduce welfare grants by 13 percent for a family of three — to $604 per month — and limit a full family’s time on aid to four years, rather than the current five years. Grants for the children only would continue beyond that time frame in many cases. He would also cut grants for aged, blind and disabled couples to the federal minimum.

Brown’s budget would also hit in-home care for the elderly and disabled. He would cut reimbursements by 8 percent across the board and eliminate funding for domestic services, such as housecleaning, shopping and laundry, for recipients who live with their caregiver, typically an adult child. In many cases these families say eliminating such reimbursement would force the relative to enter the private workforce, leaving the disabled person without care or requiring them to get it through the in-home program, potentially costing the state even more.

 

Older Americans less healthy than British but live longer, study finds

Older Americans live as long or longer than their English counterparts even though Americans suffer from much higher rates of chronic disease, according to a new study by researchers from the RAND Corporation and the Institute for Fiscal Studies in London.

The study suggests that medical care in the United States, at least for older Americans, is better than it is in England, but Americans’ lifestyles, behavior and perhaps their living conditions contribute to a greater rate of illness. Things like occupation, marital status, education, obesity and smoking influence health and the onset of disease more than medical care, the authors said.

The study found that Americans aged 55 and older were more likely to have diabetes, high blood pressure, heart disease, heart attack, stroke, chronic lung diseases and cancer. Diabetes was almost twice as common in the United States, and people in their 70s were more than twice as likely to be diagnosed with cancer in the United States as their peers in England.

But death rates among Americans were about the same as the British among those aged 55 to 64, and lower among those 70 and older.

Researchers cite two possible explanations for this disparity. Either the illnesses studied result in a higher death rate in England, or the English are diagnosed at a later stage of the disease than are Americans.

“Both of these explanations imply that there is higher-quality medical care in the United States than in England, at least in the sense that these chronic illnesses are less likely to cause death among people living in the United States,” said James P. Smith, a RAND researcher and co-author of the study, which was published in the journal Demography.

“The United States’ health problem is not fundamentally a health care or insurance problem, at least at older ages,” said James Banks of the Institute for Fiscal Studies. “It is a problem of excess illness, and the solution to that problem may lie outside the health care delivery system. The solution may be to alter lifestyles or other behaviors.”

For more information on this research, go here.

–Daniel Weintraub

 

Medi-Cal agreement to bring $10 billion from feds to expand, improve care

The Obama Administration has approved an agreement with California that will bring $10 billion to the state over the next five years to improve care for low-income people and the disabled and broaden access to care for people who have not been eligible for the state’s Medi-Cal program.

The initiative is designed to transition California toward the 2014 full implementation of the federal health reform law, when all adults with incomes of 133 percent of the federal poverty level or less will be eligible for Medi-Cal.

The agreement, known as a “waiver” because it waives rules under which the Medi-cal program typically operates, will allow all California counties to participate in the Health Care Coverage Initiative. This program helps counties provide care to childless adults age 19-64 who do not now qualify for Medi-Cal. The state estimates that as many as a half million Californians will now be eligible for care under this program.

The agreement will also boost funding for hospitals that care for the poor without compensation.

And it will transition 400,000 seniors and people with disabilities into managed care plans.

For more details on the waiver, click here.

 
 
 

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