SACRAMENTO, Calif., Jan. 10, 2013 – People with disabilities, including seniors, received some good news in today’s proposed state budget, after years as targets of state budget cuts which drastically reduced already-low incomes and crucial services.

“We are relieved that the overall fiscal picture has brightened, and that the governor proposes sunsets to some of the prior cuts,” said Catherine Blakemore, executive director of Disability Rights California.  “We would like to see restoration of the cuts to Medi-Cal and SSI, as well as In Home Supportive Services (IHSS), and hope the legislature considers that.”

The good news:

Department of Developmental Services:  No new reductions in regional center budgets; the 1.25% rate reduction to community providers of services will end on June 30, 2013; some limited reimbursement of private insurance co-pays for behavioral services will be allowed.

IHSS: Current 3.6% cut will end on June 30 (but the proposed 20% and another major cut are still pending the outcome of legal challenges).  IHSS provides low-cost services to approximately 420,000 seniors and persons with disabilities, enabling them to stay in their homes safely and avoid institutionalization.

SSI: The monthly cash benefit for extremely low-income Californians who are aged, blind or disabled will increase by $20 and $30 for individuals and couples, respectively, in 2013 and 2014.  Current monthly grant levels are $854 for individuals and $1,444 for couples.

Coordinated Care Initiative (CCI):  The budget moves implementation from June to September and includes a phase-in for these major changes in medical and long term care for around 850,000 low-income Californians. The CCI does two things:  moves approximately 560,000 people who have Medicare and Medi-Cal (“dual eligibles”) into managed care in eight counties; and changes the way another 310,000 seniors and persons with disabilities, already in Medi-Cal managed care, receive long term care services in those same eight counties.  DRC thinks that the state should reduce the number of counties involved and slow down the significant shift to managed care.  We saw problems in previous transitions and have serious concerns about whether the state and the managed care plans are ready to meet the needs of this population.  We also believe the state should include more critical long term care services in the benefit package.

Medi-Cal expansion to people who earn up to 138% of federal poverty level.  Part of the federal Affordable Care Act (ACA), coverage would be comparable to existing Medi-Cal but would exclude long term care. (People with disabilities could be eligible for long term care if a disability determination is made.)  The budget proposes two potential avenues to achieve this expansion; one through existing county Low Income Health Plans (LIHPs), the other would be administered by the state.

The bad news:

Courts:  Additional cuts to the courts affect access to justice for people with disabilities. Courts have already reduced their hours, eliminated small claims court and self-help centers.

Medi-Cal enrollment lock-in:  the proposed lock-in allows only yearly open enrollment.  People with disabilities often have complex and ever-changing medical needs requiring flexibility that a lock-in eliminates.