Monday, March 28, 2011

California Governor Jerry Brown Signs Legislation Cutting Health $1.5 billion

California Governor Jerry Brown (D)

Well, if the federal government has massive debt funded by foreign borrowing and many states have massive budget shortfalls, one has to wonder where the funds will be coming for Obamacare. Jerry Brown knows that the books have to balance, because states like California cannot print more money like the federal government.
One of the budget bills Gov. Jerry Brown signed Thursday seeks to make more than $1.5 billion in cuts to state spending on health care for the poor, mostly in Medi-Cal and the Healthy Families insurance program. Most of the cuts will be achieved by reducing by 10 percent the reimbursement for doctors, hospitals and other providers that care for the poor. The bill will also increase premiums in the Healthy Families program, implement co-payments in Medi-Cal and limit doctor visits and the reimbursement for over-the-counter medication.

The health care bill was among several Brown signed Thursday which together were estimated to achieve about $11 billion in savings, including $8.2 billion in spending cuts.
And, where are the cuts occurring?
  • Increased premiums in the Healthy Families insurance program. For families with incomes from 151 percent to 200 percent of the federal poverty level, premiums will nearly double from $16 per month to $30, with a family maximum of $90 per month. For families with incomes above 201 percent of the federal poverty level, premiums will increase from $24 per child to $42 per child, with a family maximum of $126. The
    budget also increases co-payment for emergency room visits from $15 to $50, while hospital stays would carry a co-payment of $100 a day and a maximum of $200.
  • Reduced reimbursement for facilities caring for people with developmental disabilities. Rates for these 24-hour care facilities will be reduced by up to 10 percent.
  • Cap on doctor visits. The legislation limits doctor visits paid for by Medi-Cal to seven per year per person unless a physician certifies that a visit will prevent the need for emergency care, prevent the need for inpatient hospital care, avoid disruption in ongoing medical therapy, or constitutes a diagnostic work-up that would prevent the need for hospital care.
  • Medi-Cal providers rate reduction. Rates for doctors and hospitals that care for low-income people in Medi-Cal will be reduced by 10 percent.
  • Co-payments. Requires $5 co-payments in Medi-Cal for doctor visits, $3 per prescription for generic drugs and $5 for brand name drugs. Also imposes a $50 co-payment for non-emergency ruse of the emergency room, $50 for emergency room use and $100 per day for hospital stays with a maximum co-pay of $200. The budget also implements a $5 co-pay for dental office visits.
You get the picture - less = more. The bill is here.

The states do NOT have the money to add MORE patients to subsidize medical care. Remember, adult Medicaid Dental service have been eliminated for over a year now in California.

So, where is the federal government going to obtain the money to fund ObamaCare with its individual mandate?

Well, a couple of ways but Americans may not like the truth. It is called TAXATION and RATIONING.

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