Wolk lauds rate increase for local Medi-Cal provider

Partnership Health Plan among providers to benefit from Governor s May Revise

SACRAMENTO–Assemblywoman Lois Wolk (D-Davis) applauded the Governor today for increasing funding for state Medi-Cal providers, including Fairfield-based Partnership HealthPlan of California, in his May Revise.

The Governor’s revised budget, which he released Friday, contains $61.2 million in 2006-07 to fund rate increases for six Medi-Cal managed care plans including Partnership HealthPlan, which would receive $25.3 million annually beginning July 1, 2006. The budget also contains a one-time allocation of $65.4 million to restore a five percent reduction in Medi-Cal provider payments imposed in 2003 due to budget constraints. The restoration amounts to a $5 million reimbursement for Partnership HealthPlan.

“Partnership HealthPlan has served Medi-Cal patients in Solano, Yolo and Napa Counties since 1994. It is a model for other Medi-Cal providers, yet they’ve had to spend a huge portion of their reserves to make up for the 5 percent rate cut of 2003,” said Wolk. “Increasing payments to providers will ensure continued access to quality care for 3.2 million of California’s most vulnerable citizens, children, the chronically ill, disabled and elderly.”

According to the California Medical Association, physician reimbursement rates have steadily decreased over the past 20 years, despite a dramatic increase in the cost of providing health care services in that time. As a result, some physicians have been unable to afford serving new Medi-Cal patients, and some physicians have been forced to drop out of the program altogether.

“When doctors can no longer to afford to treat Medi-Cal patients, those patients are forced to seek treatment elsewhere,” said Wolk. “Often, they wait until they have no choice but to turn to emergency rooms for the care a primary care physician could provide at a fraction of the cost. By increasing the reimbursement rate, these patients will get access to much-needed preventative healthcare services, thus saving the state money. I encourage my fellow legislators to approve this funding in the final state budget.”

“It’s excellent news. We’re really excited, because this will help us get back on track,” said Partnership HealthPlan’s Executive Director and Chief Executive Officer Jack Horn. “We’ve had five years of flat funding. Our inflation has been running 3 to 10 percent in the past five years, and we haven’t had that paid back. This increase will allow us to start expansion that we’ve been planning.”