Healthy Families Funding Partially Restored

The state legislature has voted to restore funding for the Healthy Families program by passing Assembly Bill (AB) 1422.

This follows a previous state senate vote about two weeks ago.

If Arnold Schwarzenegger signs AB 1422, it would reverse some of the spending cuts that were imposed on the program earlier this summer.

Healthy Families provides medical insurance to low-income children.

The basis for restoration of funding for Healthy Families are new taxes on Medi-Cal participants.

AB 1422 levies a two-year tax (2.35%) on health plans that administer Medi-Cal benefits.

This means that private health insurers will receive higher Medi-Cal reimbursement rates from the state.

The measure also raises premiums and co-payments on Medi-Cal patients.

Specifically, certain families on Medi-Cal would face higher premiums of $4 to $7 per child.

Those earning less than 150% of the federal poverty rate would be exempt from the higher premiums.

Almost 100,000 children were put on a waiting list after the state froze enrollment in Healthy Familie this past July.