Governor Brown Signs State Budget

June 23, 2014

Governor Jerry Brown signed the state budget for FY 2014-15 on Friday, appropriating $136.7 billion to Health and Human Services. Most health items were relatively unchanged from the May Revise, with a few exceptions. Here are a few highlights of the budget and changes from previous versions:

  • The Medi-Cal caseload is expected to increase from 7.9 million in 2013 to 11.5 million in 2014-15
  • The estimated 825,000 new enrollees who were previously eligible for Medi-Cal pre-ACA will cost $766 million in General Funds
  • Full scope Medi-Cal for pregnant women will be expanded to 138% FPL
  • Pregnant women between 138–213% FPL can dually enroll in Covered California and Medi-Cal. The State will pay the women’s Covered California premiums and cost sharing obligations for no-cost coverage, while women will still have full access to Medi-Cal providers and services through a “wrap”
  • Programs under the Managed Risk Medical Insurance Board (AIM, CHIM, and MRMIP) will be transferred to the Department of Health Care Services (DHCS) effective July 1; MRMIB will be dissolved
  • The Major Risk Medical Insurance Program (MRMIP) will not be terminated
  • The State will turn down money from the California Endowment to drawn down federal matching funds for Medi-Cal outreach and enrollment, turning away $12 million
  • DHCS will collect supplemental rebates on specialty drugs, including rebates for costly new hepatitis C treatments, saving $6 million in General Funds
  • A pilot program will contract mobile vision providers to provide eye exams and glasses to children through school districts, costing $2 million