The CSP has presented testimony to both the Assembly and Senate Budget Sub-committees to request elimination of the 10% Medi-Cal Provider rate cut that has been in place since 2011. The cut began in the midst of the recession that caused a $25B shortfall in the State Budget. Some providers have now been exempted from the cut but relief to the physician community has been very narrow targeting only a handful of physician office visit codes and some pediatric services.
The state budget picture has changed dramatically with an estimate of a surplus in the current fiscal year of $20B. The cut was not enacted based upon an assessment that Medi-Cal rates were too high but was a byproduct of desperate fiscal times for the overall budget.
In addition to the budget discussion we have also supported AB 719 (Diep) that would also repeal the cut for all providers. That bill passed the Assembly Health Committee on a unanimous vote.
The state budget must be approved by June 15th so we will know shortly whether we are successful in repealing this cut.