The CalOptima Board approved an interim Medi-Cal budget for the period of July – December 2011 last week, putting the Board on record to not implement provider cuts until January 2012. The hospital impact of proposed cuts, not to occur until January, would apply to outpatient services and the imposition of co-pays for emergency room and inpatient services. However, outpatient cuts are expected to be negated by the passage of the hospital fee bill, SB 335. And co-pays may be off the table if the Centers for Medicare & Medicaid Services (CMS) does not approve them and/or a recent Appellate Court decision in an Arizona case applies.

The CalOptima Board action provides time for physicians, medical groups and hospitals to work together and with CalOptima staff on budget strategies. HASC had requested a 30-day delay in the adoption of this interim budget; however, the manner in which the interim budget was approved (through December only) addresses the hospitals’ concerns.