Californiaâs 2021â2022 State Budget: Focus on Health Care
California Government Update August 03, 2021
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California’s New Budget Commits the State to Record Health Care Spending
California Governor Gavin Newsom and the state Legislature enacted a $196 billion spending plan for FY2021–22, including authorizing a 29% increase in health care spending over FY2020–21. This new level of spending is in part a response to the COVID-19 pandemic, but much of it will go to pay for Medi-Cal expansion, innovation and reform that was under consideration before the pandemic.
Historic Revenues Allow Record Spending
Lawmakers are able to commit to record spending on health care because of an unprecedented $85 billion budget surplus, which includes higher-than-expected tax revenues and $26 billion in nonrecurring federal COVID-19 relief funding.
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Assemblywoman Cottie Petrie-Norris has introduced Assembly Bill 540 which will help thousands of California’s growing population of seniors remain in their homes and in our communities, by improving beneficiary awareness and access to the Program of All-Inclusive Care for the Elderly (PACE).
PACE is designed to provide care for California’s frail population as an alternative to institutionalized care. PACE programs coordinate and deliver preventative and long-term care services to the elderly who would otherwise be in nursing homes, so they can continue to live and thrive in their communities. PACE is the only provider-based model of care where a single entity is entirely responsible for the delivery, outcomes and cost of care. Eligible beneficiaries must be 55 years or older and state-certified to qualify for nursing home care. Program recipients receive all of their services through a one-stop-shop PACE center, while still residing in their community, which is shown to improve