The California Legislature has approved a budget that closes most of the state's $26 billion deficit and includes significant cuts to health services.
The budget includes $15.3 billion in total cuts, including $2 billion in healthcare. Those reductions include $144 million to the State Children's Health Insurance Program and a 10% decrease in payments to disproportionate-share hospitals, a savings of $18.4 million. It reduces a fund for distressed hospitals by nearly $24 million.
The package also includes a provision instructing state health officials to seek a federal waiver to move certain patients into medical homes and managed-care programs.
Community clinics, mental health and preventive care also saw program cuts.
The budget package, a total of 30 bills, is expected to be signed by the governor soon, at which time the state be able to stop paying vendors and other obligations with IOUs.