The final budget Conference Committee report and budget trailer bill did not include the CAMPS proposal to freeze Medi-Cal rates using the 1/1/16 Medicare rates. Current law requires that DME be reimbursed at 80% of the Medicare rate or 100% of Medicare for custom rehab equipment. CAMPS has sought budget trailer bill language to change that percentage to 100% of the Medicare rate for all DME and to use the Medicare rates in effect as of January 1, 2016. Currently Medi-Cal is using those rates but could use the subsequent Medicare rates that are much lower based upon CB rates.

 

This provision would have frozen rates and required Medi-Cal to increase all DME rates to 100% of Medicare resulting in a substantial increase in the rental rate for ventilators. The final budget action did include use of some of the $1 billion in new cigarette taxes to make supplemental payments to doctors and dentists for Medi-Cal. The final amounts of $325 M for doctors, $140M for dentists, and $55M for family planning services was much less then what both the Assembly and Senate had recommended. The Governor had proposed using that $1 Billion in new funds to backfill existing Medi-Cal expenses in what appeared to be in direct contradiction to what the voters approved in Prop 56 that these new funds "not supplant" any existing funding for Medi-Cal.