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Administration Says Deal Will Provide $3.3 Billion More For Medi-Cal

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.