State Government Proves to Be a Poor Partner in Health Care, Family Physicians Say

Citing the record-setting budget delay and changes to the Healthy Families program that will plunge an estimated 250,000 children into the ranks of the uninsured, family physicians today said the process and result of this budget show that “the California state government is ill prepared to be a good partner with us in the delivery of health care to poor Californians.”

“Our mission is to keep the people of our state healthy,” said Jeffrey Luther, president of the 7,000-member California Academy of Family Physicians. “This budget shows us the State does not fully share that commitment.”

“The long delay in Medi-Cal payments to clinics where family physicians provide care, for example, was an unacceptable business practice,” Luther said. “It’s unrealistic to believe small businesses can withstand this kind of cash flow crunch without compromising patient care.” Many clinics and other providers cut staffing and hours. Some feared going out of business entirely.

In addition, “instead of investing in children’s health,” Luther said, “the State is increasing Healthy Family premiums for families struggling economically and implementing bureaucratic hoops designed to prevent full enrollment in the program.”

Healthy Families is a state-run program that provides health insurance for children and teens whose families do not qualify for free Medi-Cal coverage. Under the new budget plan, families will pay more and be required to re-enroll their children twice a year, up from the current once-a-year sign-up option. Studies in other states that have increased re-enrollment requirements show that it results in decreased participation in the program for children who are eligible. “Simply put, kids lose their insurance and therefore their health care,” Luther said.

The new budget also calls for a 10% cut in payment through February 28, 2009 for physicians who provide medical care to patients in the Medi-Cal program. “We currently are protected by a court order that requires the State to rescind these cuts because of the ‘irreparable harm’ patients would suffer because of a lack of continued access to care,” Luther explained. “The State, however, is fighting this case and still fully intends to make payments so low that many physicians will be unable to continue seeing Medi-Cal patients.”

Luther also said other changes, such as new requirements for the Rainy Day Fund, “will make paying for health care an even lower priority for the State than it already is.”

“Under the new budget, family doctors are left fighting for patient care instead of partnering with the State of California to improve and maintain public health,” Luther said. “Unless they’re healthy, the children and families of our state can’t pursue education or any other goal – we believe health care is the number one priority and regret that our elected leaders don’t seem to share that value.”

About the California Academy of Family Physicians

With more than 7,000 members, including active practicing family physicians, residents in family medicine, and medical students interested in the specialty, CAFP is the largest primary care medical society in California, Family physicians are trained to treat an entire family’s medical needs, addressing the whole spectrum of life’s medical challenges. FPs serve a broad base of patients in urban, suburban and rural areas, often in California’s most underserved areas.