California wants to pay doctors more money to convince them to see more Medicaid patients.
Optometrist Hunter Morgan poses in his offices on Friday, March 1, 2024, in Encinitas, Calif. When Morgan bought an optometry practice in San Diego three years ago, one of the first things he did was start accepting patients who were enrolled in Medicaid the government-funded health insurance program for the poor and the disabled. Just five months later, Morgan said, he had to stop treating Medicaid patients because of the paltry pay.
But unlike with most taxes, the companies don’t have to pay all of it. The state pays most of it for them, then uses the money to trigger more federal payments for Medicaid. That means more money for everybody. How much, and who will get it, will be fully decided this year. The first increases last year went to primary care doctors, maternity care and some mental health services. This year’s increases, which have not yet been approved by the Legislature, would include things like obstetric, vaccine and abortion services — and optometry.
Newsom already wants to change the tax increase he signed last year, which included $11 billion more to hike provider payments over five years. This year, because of the deficit, Newsom wants to use $8 billion for provider payments over four years. Providers would still get the same increase, but it would expire sooner.
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