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Board warned that proposed state budget changes and federal withholding could affect IHSS
Summary
Staff told the board May 18 that May State Budget revision proposals (including reinstating asset limits and other Medi‑Cal changes) and a federal $1.3 billion Medi‑Cal payment withholding could threaten IHSS funding; the state has 60 days to engage with CMS and the Governor's budget deadline is June 29.
Public Authority staff summarized May State Budget revision proposals that could affect Medi‑Cal and IHSS: reinstating asset limits to $2,000 per person and $3,000 per couple; proposed elimination of BUPS; shifting county share of cost for IHSS authorized hours; and removing the Medi‑Cal grace period for recipients who temporarily lose eligibility. Staff noted legislators had indicated they would reject these proposals but that hearings and negotiations would continue through late June; the expected deadline for the Governor's acceptance was reported as June 29.
Staff also told the board that the federal government had announced it was withholding $1.3 billion in Medi‑Cal payments from California alleging fraud (with particular reference to Los Angeles) and that Medicare enrollments for hospice programs and home health agencies would face a six‑month moratorium. The State has 60 days to engage with CMS to try to restore funding, staff said. Board members recorded these risks as part of the context for FY26‑27 planning.
