Crisis for poor as Medi-Cal funds end in California

I guess it could be called "Black Thursday"....interesting comments by each political side below too as this will have a huge impact on health facilities more so than it has ever done in the past...as you read on, the republican leader of the State Senate is not overly concerned if the talks go on for months....and has more of a focus on dollars and tax revenue generated rather than healthcare for the poor and elderly...BD

In an emerging crisis for California's elderly and poor, all Medi-Cal funding will be halted this week to an estimated 500 hospitals throughout the state and 11,000 nursing homes, hospices and adult day care centers.

Medi-Cal funds have run out because of the state's monthlong budget impasse, forcing community programs and other facilities into a frantic scramble to cover their bills. Some care facilities for the aged are making plans to close.

California has nearly 6.8 million elderly, frail and chronically infirm Medi-Cal beneficiaries, and many would be forced to find help elsewhere, or make do on their own, without emergency funding from the state Legislature.

But help is unlikely because both the Senate and the Assembly would have to approve an emergency bailout, and the Assembly has gone on summer recess.

"We have not been cut off from Medi-Cal funding before so early in the fiscal year," said Lydia Missaelides, executive director of the California Association for Adult Day Services. "The magnitude of this crisis is overwhelming."

Medi-Cal coffers ran dry last week when the state was scheduled to issue $223 million to managed-care providers. Instead, checks for only $143 million were issued.  On Thursday, $227 million was scheduled to be paid to assorted hospitals, clinics and other providers of Medi-Cal services. No money will be paid.

Assemblywoman Noreen Evans, D-Santa Rosa, predicted that Medi-Cal recipients will begin flooding hospital emergency rooms, "making the health crisis even worse ... (as) emergency rooms are already stretched to the breaking point."   She called the Medi-Cal crisis "highly irresponsible."

Senate Republican Leader Dick Ackerman, R-Irvine (Orange County), said he is not overly concerned about the budget stalemate dragging out weeks or even months longer. He said the state continues to take in tax revenue and most agencies have plenty of money in reserve.

Crisis for poor as Medi-Cal funds end