On January 5, Governor Brown released a budget proposal for California’s 2012-13 fiscal year. His plan addresses a $9.2 billion deficit (a combination of a current fiscal year shortfall of $4.1 billion and a projected $5.1 billion deficit for the year beginning July 1, 2012). The plan calls for $10.3 billion in cuts and revenue (leaving a $1.1 billion reserve fund). The plan includes:
• $6.9 billion in additional revenues from a ballot measure asking voters to increase the sales tax by ½ percent and impose higher income tax rates on high-income Californians.
• $5.4 billion in “triggered” ballot spending cuts to take affect on January 1, 2013 if voters don’t approve the November measure.
• $4.2 billion in cuts to CalWORKs, child care, Cal Grants, Medi-Cal, In-Home Supportive Services and other programs.
Terribly deep cuts to senior services enacted in the 2011-12 Budget remain in place, and have seriously damaged remaining life-line programs for seniors – In-Home Supportive Services, Supplemental Security Income cash grants for indigent elderly and disabled, Multi-purpose Senior Services Program case management, and Medi-Cal health care coverage. A negotiated settlement stopped the elimination of Medi-Cal coverage for Adult Day Health Care, but it remains unclear just how many current ADHC patients will be able to access the service once it is reconstituted under Medi-Cal Managed Care.
The following describes the Governor’s new budget proposals that would directly impact seniors and senior services in Alameda County.
MEDI-CAL PROPOSALS
Expand Dual Integration to More Counties. The Governor proposes to launch integrated managed care for dually eligible seniors and people with disabilities starting in January 2013. Essentially, the Governor proposes to extend the four Dual Integration Demonstration Pilots to ten counties. The state is currently preparing to receive applications from counties seeking to launch Pilots that will integrate managed care with long term supports and services (including IHSS, ADHC, MSSP), nursing homes, and ultimately with behavioral health care. Alameda County, with about 45,000 “duals,” is one of the counties preparing to apply.
This proposal assumes that all duals in the ten Integration Project counties would be enrolled into Managed Care Plans; that authorization for IHSS, MSSP, and Medi-Cal coverage of ADHC would be the responsibility of the Managed Care Plans; and that this change would phase-in over 12 months. The Governor’s proposal acknowledges challenges that include consumer protections, uniform assessment tools and consumer choice, but anticipates that the “single point of accountability for services” will result in cost savings and increased quality.
Launch Managed Care in Rural Counties. The Governor also proposes to launch Medi-Cal Managed Care in the rural counties that are currently fee-for-service. The Governor’s plan indicates a start date of June 2012 for this change, but does not provide dates or details for what would presumably be mandatory enrollment in Medi-Cal Managed Care Plans. This proposal does not affect Alameda County.
Institute Open Enrollment Period for Medi-Cal Managed Care. Currently Medi-Cal beneficiaries – including seniors and people with disabilities who are Medi-Cal only and those who have dual coverage – are able to enroll in or switch to a Medi-Cal Managed Care Plan throughout the year. The Governor expects that this will create better continuity and realize savings to the General Fund ($3.6 million in FY 2012-13 and $6 million the following year). There is no discussion in the Governor’s proposal about how this restriction would apply to people who have been “defaulted” into a Plan and may not even realize this until they seek care.
IN-HOME SUPPORTIVE SERVICES PROPOSALS
Assume the 20% “Trigger” cut. The Governor’s budget proposal assumes that the court action to block this year’s enacted 20% reduction in IHSS hours will be lifted, and anticipates the cut will go into effect on April 1, 2012. The Governor recommends a set-aside in the budget in case the injunction stands.
If the cut goes forward in April and the Governor proposes, only some will be exempt – those who receive the maximum of 283 hours per month, those who receive Protective Supervision, and those who receive services under a Home and Community Based Services Waiver.
Limit Domestic and Related Services. The Governor’s proposed budget would eliminate IHSS domestic services for recipients who live with other household members. The elimination would cut $163.8 million from the 2012-13 IHSS program, and would affect about 254,000 seniors, children and adults with disabilities. Domestic and related services include meal preparation and cleanup, housework, shopping, and laundry.
Repeal the Medication Dispensing Machine Project. The Governor’s proposal accepts that this project failed, assumes the savings will not be achieved, and eliminates it from FY 2012-13. The project was supposed to save $140 million for this year’s General Fund.
In Alameda County, almost 18,000 seniors and adults and children with disabilities rely on IHSS. The majority of them rely on a caregiver to provide personal, domestic and related services. Over 14,000 cannot perform housework without help; Over 11,000 cannot prepare meals without help; Over 15,000 cannot shop for food without help. Over 11,000 live in a shared living arrangement and most of these would lose their domestic and related services under the Governor’s proposal.
CAREGIVER RESOURCE CENTER PROPOSAL
The Governor proposes to eliminate funding for the eleven Caregiver Resource Centers in California. In 2009 Governor Schwarzenegger used his line item veto to cut 70% of state funding for Family Caregiver Alliance and the other ten Alzheimer’s Resource Centers in California. This cut has had a significant impact on these organizations, yet they continue to provide information, education, respite, care planning and support for families and friends who are caring for adults with chronic disabling health conditions. If California eliminates it’s funding, CRCs will lose the match they need to draw down federal dollars, and California’s 5 million family caregivers who provide $47 billion in “free” care may be without support.