May 7, 2002
Raul Ramirez, Director
News and Public Affairs
KQED Public Radio
Dear Mr. Ramirez:
Thank you for contacting me regarding questions raised in KQED Public
Radio's The California Report. I am always pleased when constituents
of the 7th Senate District voice their concerns about public policy
issues.
In regards to the question raised about Medi-Cal
reimbursement rates, the California Medical Assistance (Medi-Cal)
Program provides health care services to more than 5 million welfare
recipients and other qualified low-income persons primarily families
with children and the aged, blind, or disabled. The Department of
Health Services administers the program.
The state and the federal government share the cost
of most Medi-Cal benefits on a roughly equal basis. For 2000-2001,
the Medi-Cal Program will spend an estimated $1.2 billion ($600
million from the state General Fund) for physician services in the
traditional "fee-for-service" portion of the program in
which providers are paid for each examination, procedure, or other
service that they furnish.
The nonpartisan Legislative Analyst's Office in
February 2001 noted that rates paid to physicians for services provided
under the Medi-Cal Program are relatively low compared to the rates
paid by the federal Medicare Program and other health care purchasers.
I have supported legislation that benefits the Medi-Cal
program. In 2001 I voted for SB 833, which required DHS by March
1, 2002 to submit a state plan amendment basing the definition of
unemployment for purposes of Medi-Cal eligibility on the net nonexempt
earned income of the principal wage earner only, and increasing
the income level to 200 percent of the federal poverty level. This
bill would have expanded Medi-Cal eligibility by allowing more two-parent
families to enroll. However, Governor Gray Davis vetoed this bill,
citing concerns about declining revenues in the state's General
Fund.
The state's current budget situation creates challenges
for addressing Medi-Cal improvements. However, with leadership from
Governor Gray Davis and my colleagues in the Legislature, I believe
we can meet these challenges and continue providing assistance to
those in need.
Thank you again for your letter. Please continue
to contact me about issues that concern you.
Sincerely,
Tom Torlakson
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