California’s first state contribution for Medicaid expansion totals $1.3B

California will pay about $1.3 billion for Medicaid expansion this year as it begins to pick up some of the tab for the initiative, reports California Healthline.

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Here are three things to know.

1. California expanded its Medicaid program, known as Medi-Cal, under the ACA. After the expansion, Medi-Cal added nearly 4 million enrollees, according to the report, which cites data from the state department of healthcare services.

2. The federal government previously paid 100 percent of Medicaid expansion costs. However, this year the state will cover 5 percent of the cost to insure newly eligible enrollees, according to the report.

“It was expected, but it’s still money that has to come from somewhere,” said Stan Rosenstein, a healthcare consultant in Sacramento, Calif., and former state Medicaid director. “It puts budget strain on the state.”

3. Democratic California Gov. Jerry Brown proposed allocating about $1.2 billion in new tobacco tax revenue for general Medicaid spending growth, according to the report.

Read the full report here.

 

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