Sacramento, CA — Schwarzenegger administration officials have announced a five-year agreement they say will provide $3.3 billion in new federal funding for medical care for California´s poor.
But a group representing public hospitals is criticizing the deal, saying it would bring in less money than the administration claims and would worsen California´s health care crisis.
The agreement gives the state a new five-year waiver from federal rules covering hospital payments under Medi-Cal. That´s the federal-state health care program for the poor.
The waiver allows California to continue to contract with a select group of 230 hospitals for Medi-Cal services instead of paying all 600 California hospitals. Officials say that contracting with fewer hospitals saves money.