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San Francisco Marin Medical Society Blog

Legislature Passes State Budget; Does Not Reverse 10% Medi-Cal Provider Rate Cuts

The California Legislature completed its work on the fiscal year 2014-15 state budget, having passed the budget bill and a number of trailer bills. SFMS is extremely disappointed the budget does not include funds to address any Medi-Cal provider rate cuts. Several members of the Legislature commented on the issue and expressed disappointment that they were unable to address Medi-Cal provider rates this year. 

The budget did eliminate retroactive collection of the 10% Medi-Cal cut that would have dated back to June 2011, saving Medi-Cal providers more than $42.1 million in retroactive “clawbacks.” This was a direct result of the advocacy efforts of the “We Care for California” coalition, spearheaded by the California Medical Association and county medical societies.  

In addition, for the first time in recent history, California will fund an increase in medical residency slots. The budget allocates $7 million to expand the Song-Brown program, which has traditionally supported family medicine training programs but will be opened up to all primary care specialties. While approximately $3 million of the appropriated fund will goes towards increasing the whole of the Song-Brown program, $4 million will be specifically set aside to assist programs seeking to increase the number of residents in training, with a priority given to programs that have graduates from California-based medical schools.

The budget proposal now goes to the Governor, who has until the end of June to sign it.

Caption: State Senate President Pro Tem Darrell Steinberg (right) shows his approval after the Senate passed the state budget. Photo: Rich Pedroncelli, Associated Press

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