This summer, Governor Newsom and the California State Legislature passed a budget that continues to protect many of the central services older adults and people with disabilities rely on. We applaud these actions and funding to protect these services. For example, the budget maintains In-Home Supportive Services (IHSS) for undocumented Californians in the Medi-Cal program, and the final budget agreement rejected proposed cuts to the IHSS back-up provider system, senior nutrition programs, HomeSafe, Adult Protective Services, and CalFresh.
Yet, even with these good highlights, we are dismayed that the Medi-Cal Share of Cost reform of increasing the maintenance need income from $600 a month to 138% of the federal poverty level was excluded from the final budget. In the 2022-23 state budget, the Governor and Legislature committed to reforming the Medi-Cal Share of Cost program beginning January 1, 2025, so older adults and people with disabilities who do not qualify for free Medi-Cal, do not need to impoverish themselves to get critical Medi-Cal services.
Currently, an adult who is even just $1 over the monthly income limit for free full Medi-Cal, has to pay over $900 in a Share of Cost before Medi-Cal will cover any of their health care costs in a given month. They are only allowed to keep $600 of their monthly income, known as the monthly maintenance income limit. This income limit is extraordinarily low as it hasn’t been updated in over 40 years. And it forces low-income older adults and people with disabilities to spend 60% or more of their monthly income towards the cost of their care. No one can live on $600 a month and meet their needs for food, housing, clothing and transportation.
California Health Advocates will continue our committed and strong advocacy to help make sure this much needed and long overdue Medi-Cal Share of Cost reform is implemented in the 2025-26 state budget.
