July 12, 2022

The California Legislature passed and Governor Gavin Newsom signed the 2022-23 state budget, which continues California’s commitment to achieving universal access to health care. The $308 billion budget addresses many key California Medical Association (CMA) priorities, including a phased system to provide comprehensive Medi-Cal coverage to all income-eligible Californians, regardless of age or documentation status by January 1, 2024.

“The CMA and the doctors of California commend Governor Gavin Newsom and the California Legislature for crafting a budget that prioritizes universal health care access and coverage for all Californians,” said CMA President Robert E. Wailes, MD. “This year’s budget officially makes California the first state in the nation to expand its Medicaid program to provide full benefits to all eligible individuals, regardless of age or documentation status. We believe this is a critical step in our shared goal of ensuring that every Californian has access to quality health care.

Below are highlights of some key healthcare provisions included in the final budget:

• Permanently expands key telehealth flexibilities implemented during the pandemic in the Medi-Cal program, ensuring payment parity for providers using audio/visual, audio-only, and asynchronous store-and-forward technologies;
• $300 million annually for state public health departments, plus an additional one-time $75 million for public health workforce development;
• Expanding the full reach of Medi-Cal to all eligible individuals, regardless of age or documentation status, eliminating existing age limits;
• Continued Medi-Cal coverage for all income-eligible children ages 0-5 to prevent this population from losing coverage during these critical developmental years;
• Full Funding of Additional Prop Payments. 56 Medi-Cal and GME programs;
• Major investments in health care workforce development, including $351.6 million in addition to those already included in the May revision proposal;
• $1.3 billion for the Healthcare Worker Retention Allowance, which will provide a financial allowance to each person working in qualifying hospital settings, including physicians.
• $700 million in equity and practice transformation payments to better meet the needs of the Medi-Cal population. $200 million of this funding is intended to help practices transition to alternative payment models, as mandated by Office of Healthcare Affordability legislation; and
• $200 million for reproductive health and reproductive justice issues, including $40 million for reimbursement of unpaid care to reproductive health service providers.

“From investments in our health workforce and public health infrastructure to the continued expansion of telehealth and funding for key health care programs, the budget demonstrates a commitment to reducing health disparities and improving access to quality care,” says Dr. Wailes. The CMA looks forward to our continued work with the Legislative Assembly and the Governor to continue to strengthen our health care system to ensure that the promise of universal access is not in vain and that patients have access fast and unimpeded access to affordable, high-quality care.

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