This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wary Of Cost, Gov Commits Calif. To Health Reform

The study said another 240,000 to 510,000 people who already are eligible but not yet enrolled are expected to join because of the federal law's individual mandate and a simplified enrollment process.

The Obama administration is encouraging states to expand their Medicaid programs by offering more money. The federal government will pay all medical costs for newly eligible enrollees for the first three years, with funding decreasing to 90 percent by 2020. The state would continue to be reimbursed at 50 percent for everyone else.

State Health and Human Services Secretary Diana Dooley says the governor's budget proposes to include some funding for Medi-Cal expansion in the first half of 2014, but said true costs are not known.

"I think there are as many estimates as there are estimators," she said.

The expansion is projected to cost California $6.3 billion over 10 years, but that would be just 1.7 percent more than what the state would spend on MediCal without the expansion, according to the Kaiser Family Foundation.

Dooley said she is concerned that the federal government has not finalized rules for reimbursing states to determine who is a newly eligible Medi-Cal recipient. It's not clear what medical benefits will be required under the expansion. And even though Medicaid was exempted from across-the-board cuts that threatened to push the nation over the "fiscal cliff," Dooley said it is possible Medicaid spending could be reduced in the next round of deficit talks.

With so many unanswered questions, Brown has proposed two options for sharing some of the cost with California's 58 counties. One option would be to expand the state Medi-Cal program and ask counties to take on more responsibility for providing social services, such as child care. The other asks each county to run its own expansion program because many of them already have begun increasing coverage in anticipation of the health care reform law.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs