Yesterday evening the Budget Conference Committee took final action on the Medi-Cal claw back or retroactivity on the 10% provider rate reduction and the possible removal of the 10% provider rate reduction on a prospective basis. The Assembly version of the budget would have eliminated both the retroactivity for all providers and eliminated the 10% cut in May of 2015. The Senate version would have restored some optional benefits, like incontinence creams and washes, but only eliminated the 10% reduction on a prospective basis.

The governor continued to oppose any change from his proposal, which was to eliminate retroactivity for only some providers, not DME or medical supplies, and not eliminate the 10% reduction for any provider type. Though there were comments from almost every  Conference Committee member on both sides of the aisle that there needs to be rate relief to insure the availability  of providers to serve the expanding Medi-Cal population, no relief was provided. The compromise budget language only requires DHCS to continue to monitor access and if it is determined that is impaired, DHCS has the authority to adjust rates.

This is more than disappointing, but the governor will only make provider rate changes selectively, as the need is demonstrated. The legislators on the Conference Committee decried the low provider rates in California and the continued reductions in the provider pool. They asked for priority action next year, but that does not help us now. The Conference Committee report goes to both houses of the legislature for final adoption on Sunday.