Press release

Local Health Plans’ Statement on Governor Gavin Newsom’s Budget Proposal

SACRAMENTO, CA — On behalf of the Local Health Plans of California (LHPC), a group representing 16 of the not-for-profit local health plans that serve more than 70 percent of Californians enrolled in Medi-Cal managed care, CEO Brianna Lierman offered comment on Governor Gavin Newsom’s budget proposal for 2021-22:

“In these extraordinarily hard times, those with Medi-Cal have been hit the hardest. COVID-19 has exposed and deepened the fault lines between those who are protected and those most at risk. Local plans’ commitment to Medi-Cal members has intensified over the past year. Along with the basic health care services local plans provide, they have funded food pantries, housing and personal protective equipment for providers to help their communities survive during this pandemic.

“We are heartened to see that in these difficult economic times, the proposed budget continues to prioritize those individuals who have been marginalized and underserved. As we face uncertain economic times and serious health risks, it is essential to remain focused on addressing health disparities, especially in communities of color, and adequately funding new Medi-Cal initiatives to ensure some of the lowest income Californians get the health care they need.

“The base funding and reignition of CalAIM provides the opportunity to further innovate, and local plans are ready to help lead Medi-Cal into the future. It is critical to support and stabilize the health care delivery ecosystem as Medi-Cal is transformed to better coordinate services and offer a more seamless system that leads to better health outcomes for millions of Californians.”

Governor Newsom Proposed 2021-22 Budget Medi-Cal Highlights:

  • Medi-Cal funding accounts for 62.6% of California’s Health & Human Services budget
  • Proposed Medi-Cal funding increase by 10% ($122.2 billion)
  • Medi-Cal caseload projected to increase by 1.63 million (estimated 15.6 million)
  • CalAIM funding $1.1 billion for 2021-22; $1.5 billion for 2022-23

About LHPC

Local Health Plans of California (LHPC) is a statewide trade association that represents all 16 of the publicly managed, not-for-profit health plans that provide access to critical and comprehensive health care services for low-income populations enrolled in California’s Medicaid program, “Medi-Cal,” in 36 out of 58 counties in the state. With over 7 million enrollees, our plans serve approximately 70 percent of all Medi-Cal managed care beneficiaries. Our member plans cover more lives than 49 other states’ entire Medicaid programs. More here.

Media Contact
Andrea Duarte
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