Monterey, CA California Expanding Medi-Cal Program If Tax Increase Approved By Voters In November

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The Supreme Court's ruling that states will not be forced to add 17 million more people to the Medicaid (Medi-Cal in California) system under President Obama's health care reform act has state officials scrambling to figure out how to deal with the ruling.  On the one hand, they will have to kick in a small amount (nothing between 2014 and 2016 and gradually increasing to 10% by 2020), but on the other hand if they don't step up to the plate and pay, county hospitals will continue to shoulder the costs for the care of these 17 million people.  Many states are undecided as to how to deal with the problem, and the poorest states are unlikely to adopt the plan.  Mississippi, for instance, would have a full one-third of the state on Medicaid if they adopted health care reform.  USA Today recently did a survey which found that seven Republican led states have refused to adopt the program and 22 others are undecided.  No Democratic state said they were against the Medicaid expansion, but seven states are undecided.  Governor Jerry Brown has come out in favor of the Medi-Cal expansion in California, but isn't fully committed if voters don't back him on a tax increase which will be on the ballot in November.  The state is about halfway toward a web-based enrollment system to meet the January 1, 2014 for the health care exchange program and is expecting a 10% increase in Medi-Cal enrollment.  However, the state is facing a $15.7 billion budget shortfall and if voters don't approve an $8 billion tax increase in November, Diana Dooley, Secretary of the Health and Human Services Agency in California, told USA Today, "We will have to evaluate what impact that will have on our ability to fully implement the reforms."  This is going to be a big challenge getting voters to approve this tax increase given the still struggling economy.  One thing is for sure, there will be a huge amount of political advertising in the Fall. 

Please note that this blog reflects my personal opinion and may or may not reflect the opinion of HandsTo Help Seniors and the individual members comprising the Board of Governors.