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Assembly subcommittee hears DHCS request for loan as Medi‑Cal costs surge
Summary
The Assembly Subcommittee on Health heard Department of Health Care Services officials explain a newly activated March cash loan and a request for additional state borrowing to address higher‑than‑expected Medi‑Cal spending driven by enrollment, pharmacy costs and timing of revenue collections.
The Assembly Subcommittee No. 1 on Health heard administration and fiscal analysts describe steps taken to maintain Medi‑Cal cash flow as program costs exceeded earlier projections.
Department of Health Care Services Director Michelle Baass told the panel that “on March 4 the Department of Finance activated a $3,440,000,000 medical provider interim payment loan to the department” to manage medical cash flow and ensure providers and plans are paid on time. Baass added the administration will seek an additional $2,800,000,000 consistent with the governor’s projected current‑year shortfall identified in the governor’s budget.
The loan and supplemental request follow upward revisions in the November 2024 Medi‑Cal estimate. DHCS said the November estimate projected $174,600,000,000 in total Medi‑Cal spending and $37,600,000,000 in state general fund for the current year; the budget year estimate rose to $188,100,000,000 total funds and $42,100,000,000 general fund due to higher caseload and spending projections.
Why it matters: Medi‑Cal covers…
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