Proposed Governor’s Budget 2021-22 for MediCal
Due to the Covid recession, MediCal enrollment is projected to increase by 10% from 2019-20 to 2020-21 and by another 12% from 2020-21 to 2021-22 – an estimated 15.6 million enrolled in the coming fiscal year. About 40% of all Californians will be enrolled in MediCal. The MediCal budget is proposed to be $122 billion, of which $28.4 billion is state General Fund.
MediCal has multiple different systems: managed care, fee for service, mental health, dental health, substance abuse and IHSS. CalAim seeks to integrate and coordinate these different systems. It seeks to: 1) identify and manage member’s risk through whole person care; 2) make the systems more consistent, flexible and seamless, and 3) improve outcomes, reduce disparities and drive system transformation through payment reforms and value based initiatives.
MediCal proposes to spend $1.1 billion on care management; whole person care and dental care initiatives. It will offer $750 million in one-time only competitive grants for counties to buy and rehab real estate to house the continuum of behavioral health treatments. County behavioral health changes include student mental health with schools, payment reforms, administrative integration and standardizing medical necessity.
The proposal to suspend Prop 56 Supplemental Payments is delayed for 12 months until July 1, 2022. The proposals to suspend audiology and speech therapy, optician and optical lab services and podiatric services is delayed until December 31, 2022.
Prepared by: Lucien Wulsin
Dated: 1/26/21