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Swimming upstream

Posted by: Ella Hushagen on Jul 24, 2009

California is moving against the strong current toward universal coverage with its new budget agreement. As the LA Times reported,

Their agreement, which could go before the full Legislature within days, does not include any broad-based tax increases, relying instead on deep cuts in government services, borrowing and accounting maneuvers to wipe out the deficit.

The deep cuts to health care for children and for elderly and disabled Californians will be devastating. According to the Sacramento Bee,

For the first time since its inception in 1997, Healthy Families began turning away Californians who make too much to qualify for Medi-Cal, but not enough to pay for private health insurance.... Program officials said that as many as 400,000 children might be turned away in the next year unless the money is restored.

The budget agreement also targets frail elderly and disabled Medi-Cal enrollees who benefit from in-home services to help them live independently in their home. The New York Times reports that

In-home services for the elderly and infirm were reduced by several million dollars, and Mr. Schwarzenegger, a Republican, achieved his goal of having caregivers and the recipients fingerprinted in the future with the goal of preventing fraud.

California's move to restrict rather than expand coverage for vulnerable populations runs counter to federal activity to enact health reform, and to steps taken by other states in similar economic doldrums. According to NYT,

Despite budgets ravaged by the recession, at least 13 states have invested millions of dollars this year to cover 250,000 more children with subsidized government health insurance.... In addition to increasing income eligibility levels, three states are dropping requirements that legal immigrants wait five years before joining the program.... Others have extended coverage to pregnant women or streamlined enrollment and eligibility procedures.

California is cutting its safety net at the very moment people need it most, magnifying the ongoing erosion of coverage in California we recently reported. Already, Californians are losing health coverage at a rate of 6,380 people per week, 27,640 people per month, and 331,730 per year.

As Anthony Wright of Health Access California blogged,

Even in bad economic times, there are choices. And the shameful decision of California leaders, starting with Governor Schwarzenegger, is in stark contrast to many other states.

The cuts, if enacted, will reduce federal dollars flowing into California, which will further slow down the economy, affecting all Californians. There are more than a few good reasons the rest of the country is going the opposite direction.