Dear CAMPS Member: 

 

The National Association of Independent Medical Equipment Suppliers (NAIMES) has released a survey to gauge what suppliers feel should be done about competitive bidding. The survey was also featured in Homecare Monday with the hopes that all state association members will participate. NAIMES' goal is to get a real sense of where the supplier community stands on this issue.

  

Click here to take the survey. 

 

 

Budget Update/Medi-Cal Provider Rates

 

  

For the first time in many years the Legislature actually passed a budget by the constitutional deadline of June 15th. Unfortunately, the next day the Governor vetoed the budget bill and some of the trailer bills. The Legislature passed a budget with a simple majority vote based upon the initiative passed last year changing the two-thirds vote requirement. The Democratic leadership budget relied upon some fund shifts and delays that had been described as "gimmicks" by Governor Brown and part of his campaign promise to pass a balanced budget and restore fiscal stability for the state. His idea to allow voters to approve the extension of temporary taxes that expire on June 30th has not yet been approved and any such measure would be on the ballot no earlier than Fall of this year or sometime in 2012. The Governor continues to negotiate with a handful of Republicans who want a spending cap and more pension reform before they agree to put these tax increase extensions on the ballot.

 

In the meantime the 10% provider rate cut that was adopted in the earlier budget cuts package has yet to be implemented pending CMS signoff of that and other program changes. Other changes include co-pays and a cap on physician visits. That could happen at any time and we are seeing increasing pressure from the state Medicaid program to be given flexibility to reduce program costs driven by more beneficiaries by lowering provider rates. We will keep you informed.

 

You may have noticed that there will not be a delay in your last checkwrite in June into July. This has been authorized as one of those budget gimmicks to move that expense from one fiscal year to the next, (i.e. fiscal year ends on June 30th) so don't pay the bill until July. This year that delayed checkwrite was waived since it would have actually cost the state money due to the federal increase in the Medi-Cal matching rate from CMS that will expire on June30th. So if they delayed the June checkwrite the percentage of that amount that would be funded by the federal government would be reduced from the current 62% back down to 52%. It's good news for providers but the motivation was not your welfare.