On June 28th, the state senate and assembly passed a series of bills that make up the fiscal year 2011-2012 state budget, which balances the state's finances through a combination of service cuts, fee hikes, and an assumed increase in revenues. Below is a brief summary of the cuts and changes that will be implemented to the IHSS and Medi-Cal programs as a result of the final budget. For more information on the items listed, please visit PASC's website at www.pascla.org.
IHSS Trigger Cut Related to State Revenues - Will reduce IHSS service hours for all consumers by 20%. Will also reduce funding for IHSS anti-fraud grants by $10 million. Effective date: Will only be implemented in January 2012 if projected increases in state revenues are not realized.
IHSS Trigger Cut Related to a Medi-Cal Pilot Program - Will reduce IHSS service hours for all consumers by up to 8.4% if a new pilot program related to medication dispensing machines does not result in an anticipated savings of $140 million. This reduction would be in addition to the 20% trigger reduction mentioned above. Effective date: Will only be implemented in October 2012 if savings related to the pilot program are not realized.
Establishment of a New IHSS Eligibility Certification Requirement - Requires all IHSS consumers to obtain a healthcare professional's written certification that he or she needs assistance with some activities of daily living to remain safely at home. Effective date: July 1, 2011 (currently delayed).
Reduction in Funding for IHSS Advisory Committees - Eliminates the mandate for each county to have an IHSS Advisory Committee, and reduces funding for committees to $3,000 per county. Effective date: July 1, 2011.
IHSS Community First Choice Option (CFCO) - Assumes $121 million in savings from the expected approval of additional federal IHSS funds from CFCO, which is a new Medicaid option available beginning in October 2011. Effective date: October 2011.
Reductions in Funding for IHSS Public Authorities - Lowers public authority funding to $24.7 million. Effective date: July 1, 2011.
Reductions and Changes to Medi-Cal - Implements new limits on doctor visits, establishes various co-pays, reduces reimbursement payments, and eliminates Medi-Cal funding for Adult Day Health Care (ADHC) programs. Effective date: July 1, 2011, except for the elimination of funding for ADHCs, which has been delayed until December 1, 2011.
Medi-Cal Trigger Cut Related to State Revenues - Will reduce state funding for Medi-Cal managed care plans by $100 million. Effective date: Will only be implemented in January 2012 if projected increases in state revenues are not realized.
Reduction of SSI/SSP Payments - Lowers the maximum amount for SSI/SSP payments for individuals to $830 per month. Effective date: July 1, 2011.
Reduction in Funding for the MSSP Program - Reduces funding for Multipurpose Senior Services Programs by $2.5 million. Effective date: July 1, 2011.
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