Press release

Local Health Plans’ Statement on Governor Gavin Newsom’s Revised 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, Interim CEO Linnea Koopmans offered comment on Governor Gavin Newsom’s revised budget proposal for 2021-22:

“While there are many demands for the significant increase in state revenue, Governor Newsom’s prioritization of underserved populations and overall health is evident in the expansion of Medi-Cal, historic investments in behavioral health, and expanded postpartum care.

“California has led the country in treating all residents fairly and with dignity. Dedicating state resources to provide Medi-Cal health coverage to adults 60 and over regardless of their immigration status builds on that leadership. Not only is it the humane option, but it improves health while reducing the need for costly trips to the ER by providing a regular source of health care. Local plans are prepared to begin expanding the care we provide to this important group.

“Isolation and anxiety associated with this pandemic has exacerbated our mounting mental health needs in this state, particularly with children. The additional investment in behavioral health services and workforce provides desperately needed supports to those in need. Local plans look forward to partnering on expanded services for our youth.

“This budget recognizes the importance of supporting healthy moms so they can focus on caring for their babies by providing nearly $90 million to provide a full year of postpartum care in Medi-Cal.

“There are many other big investments that will improve the lives of many Medi-Cal recipients, including significant funding for housing for the homeless, a major down payment on bring broadband access to low-income and rural communities, and universal preschool.”

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

  • $3.1 Billion: Behavioral health prevention, workforce expansion, crisis services, acute care
  • $1.1 Billion: Medi-Cal expansion for adults over 60, regardless of immigration status
  • $550 Million: Reinstate Prop. 56 supplemental payments
  • $315 Million: Population health management
  • $217 Million: Include community health workers as approved Medi-Cal providers
  • $200 Million: Build capacity to establish a coordinated system for providing Medi-Cal coverage 30 days prior to release for justice-involved populations
  • $90.5 Million: Postpartum coverage expansion from 60 days to 12 months

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
Nicole Evans
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