The Governor's Budget included $750 million in savings from a Medi-Cal Cost · Containment proposal. The May Revision includes the following specific savings proposals to contain costs in the Medi-Cal program for $523 million (proposed policies require a state plan amendment or federal waiver and include the federal stimulus impact):

(1)    Limit services and establish utilization controls for $90.2 million

Eliminate certain over-the-counter drugs (such as acetaminophen or cough and cold medicine) and nutritional supplements ($13.0 million).  This will not include liquid Tylenol

Establish a maximum annual benefit dollar cap on hearing aids at $1,510, durable medical equipment at $1,604, incontinence supplies at $1,659, urological supplies at $6,435, and wound care supplies at $391 ($3.8 million).  Note: The cap on DME will not include compressed oxygen or respirators. Also exempt from the caps will be some disposables for tracheotomy and ostomy patients. Additional exemptions for long-term care, pregnancy related treatment and beneficiaries under 21 years of age.

Limit prescriptions (except life-saving drugs)to six per month ($4.2 million) - Prescriptions will also have a mandatory co-payment of $3 per preferred prescription and $5 per non-preferred prescription.

Limit the number of physician or clinic visits to 10 per year ($69.2 million). The proposed limits are consistent with the aggregate utilization of these services at the 90^th  percentile of Medi-Cal enrollees.