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UPDATE
FROM AAP-CA EXECUTIVE DIRECTOR, KRIS CALVIN, MA
August 2004


Medi-Cal Redesign: "No Go" this year


I am very pleased to report that the Governor has opted to defer, until next year, his plans to trim $400 million dollars annually off the state Medi-Cal budget through a massive redesign. While the Administration's general frame for the redesign was a positive one, numerous critical issues were on the table that had not been resolved. This time extension permits a more thoughtful approach, one that will be far more likely to yield effective cost cutting strategies that do not jeopardize quality. Please contact the Governor to let him know how much we appreciate this important policy decision (916-445-2841; fax 916-445-4633), to email visit http://www.govmail.ca.gov/

AAP-CA has worked tremendously hard, in coalition with like-minded partners, to advocate that a longer, more thoughtful process is needed to improve Medi-Cal, rather than the quick mega-waiver action the Governor had originally sought. To that end, I participated in over 20 meetings on this issue on your behalf. Further, AAP-CA lobbyist Jackie Miller and I had extensive one-on-one and joint communications with key state officials, legislative offices and coalition partners. Our message was clear. While we support redesign of Medi-Cal to improve the program, cost cuts cannot be the primary consideration. (California's per capita Medicaid cost is already $2000 less than the national average.) Perhaps most importantly, the waiver process the Governor was considering would require per capita "budget neutrality", meaning California was potentially signing away the open-ended entitlement we currently have to a federal match under Medi-Cal.

Debate over the redesign of Medi-Cal was expected to dominate legislative discussions between now and the planned October submission of the waiver. Deferral of this until next year is a tremendous victory. Please let the Governor know that you appreciate his understanding of the complexity of this issue and the extension of the timeline to permit thoughtful input and design.

Thanks for your help.
Best regards,
Kris