L.A. Care Joins Effort to Permanently Prevent Diversion of Prop 56 Funding Away from Medi-Cal

L.A. Care was encouraged to hear that Governor Newsom’s latest budget proposal would not divert Proposition 56 funding away from Medi-Cal investments that support children’s health – at least not right away. However, the proposal’s one-year suspension of the diversion does not go far enough. Lawmakers must act to eliminate any future possibility that Prop 56 funds will be diverted from their originally intended programs.

The governor had first proposed diverting the Prop 56 funds due to the state budget deficit caused by the COVID-19 pandemic. In December, L.A. Care expressed opposition to that proposal. The health plan is now expressing its opposition to any future effort to divert Prop 56 funds, and has joined nearly 40 high-profile health and children’s advocacy organizations in signing a letter this week asking California lawmakers to pass legislation ensuring such a diversion will never happen.

Much of Prop 56 funding is designated to support Medi-Cal providers who offer well-child care, and developmental and trauma screenings in areas where utilization and screening rates have been historically low. Prop 56 funding also created the CalHealthCares Loan Repayment Program, which strengthens the Medi-Cal pediatric provider workforce through medical school loan forgiveness. This program helps recruit and retain pediatricians who can ensure that children receiving Medi-Cal benefits will have better access to high quality physicians, and therefore, better health outcomes.

The COVID-19 pandemic cannot serve as an excuse to deny much needed services to some of the most underserved children in California. In fact, the pandemic is likely to increase the need for services for these children, including mental health support. We have been making progress in efforts to increase utilization and screenings, and we want to ensure that the progress is not halted by shortsighted budget policy.