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By Jordan Lindsey, Executive Director, The Arc & UCP California Collaboration
The Senate Budget Subcommittee on Health and Human Services took action on May 28 to reject several major health and human services cuts proposed in Governor Newsom’s May Revision, while delaying several other Medi-Cal reductions until October 1, 2027. These actions are the Senate’s budget position and are not final until the Legislature and Governor complete the budget process by mid-June.
The biggest action was the Senate’s rejection of the proposed return of the Medi-Cal asset caps. The Governor proposed bringing back a strict asset cap of $2,000 for an individual and $3,000 for a couple, which would have affected seniors and people with disabilities. The Senate rejected that proposal. It also rejected the related In-Home Support Services (IHSS) reduction tied to the Medi-Cal asset-limit change.
The Senate also rejected the proposal to shift more IHSS costs to counties. This means the Senate did not accept the Governor’s plan to make counties responsible for more of the cost growth in IHSS hours.
In addition, the Senate rejected the proposed elimination of the IHSS Backup Provider System, which helps provide care when a regular IHSS provider is not available.
The Senate also rejected the proposal to roll back the expansion of Adult Protective Services (APS). The Governor’s proposal would have reduced APS funding and narrowed eligibility by moving the age threshold back from 60 to 65. The Senate rejected that cut.
For Medi-Cal individuals with unsatisfactory immigration status, or UIS, the Senate took a mixed approach. It delayed the planned $30 monthly Medi-Cal premium by three months, moving the start date to October 1, 2027. The Senate also rejected the Governor’s May Revision proposal to increase that premium from $30 to $50.
The Senate also delayed three other Medi-Cal reductions by 15 months, moving them to October 1, 2027: elimination of dental benefits for UIS Medi-Cal members, reduced clinic reimbursements for UIS Medi-Cal patients, and elimination of Proposition 56 supplemental dental payments.
Another major item in this year’s budget is the Governor’s proposed elimination of supplemental funding to Medi-Cal dental providers. Access to dental care for people with disabilities and other Californians on Medi-Cal is extremely limited. In response, a few years back additional funding was provided to dental providers through Proposition 56 funds. The Governor has proposed to stop those additional payments totaling $250 million. The Senate instead took action to delay the elimination of the payments until October 1, 2027.
In regards to regional center services, the Senate took action to adopt the Governor’s proposal to invest $15 million ($12.4 million General Fund) to update the rate model methodology for certain early intervention services delivered outside the home. Additionally, the Senate voted to extend the use of Remote Services for two years and to require data collected on the use of Remote Services.
Finally, the Senate voted to modify the Governor’s proposal to change the structure of Board of Directors at regional centers. The Governor’s proposal would have required certain professional skills and experience to be represented by individuals on the Board, but would have eliminated the requirement for parents or family members of clients served to also be on the Board. The Arc of California has advocated that the parent voice is critical to the governance of regional centers, and the Senate took action to require this stakeholder feedback be included in the final budget agreement.
Bottom line: The Senate rejected several of the Governor’s most significant proposed cuts to Medi-Cal, IHSS, and APS. For UIS-related Medi-Cal changes and dental provider payments, the Senate did not fully reject every proposal, but it pushed the start date back to October 1, 2027. The final outcome will depend on negotiations with the Assembly and Governor in the next two weeks.