By MADISON HIRNEISEN
THE CENTER SQUARE STAFF REPORTER
(The Center Square) — Thousands of Medi-Cal recipients who are children, pregnant or disabled adults would no longer be required to pay premiums for health care coverage under a new proposal introduced by a California lawmaker.
Assembly Bill 1995, introduced by Assemblyman Dr. Joaquin Arambula, D-Fresno, would eliminate Medi-Cal premiums for pregnant women, children and people with disabilities. Currently, more than 535,000 people who are pregnant, disabled or children are required to pay Medi-Cal premiums to maintain coverage, causing financial hardship for thousands, Arambula said.
“During my years as an emergency room physician, I saw what happened to people and families that had delayed medical care because they had no access to health insurance or had lost their insurance,” Dr. Arambula said in a statement. “The consequences were severe, devastating, or worse.
“We need to change the system so that pregnant women, children, and people with disabilities can be assured their Medi-Cal coverage continues, and they won’t have to choose between paying for health care or paying household bills.”
According to a report from Children Now, a co-sponsor of the bill, California is one of four states that charge premiums for Medicaid coverage for children. The report notes that these premiums can total more than $300 annually for a family with two children.
Families with incomes between 160% and 266% of the Federal Poverty Level are required to pay premiums for Medi-Cal coverage in California, according to the state’s Department of Health Care Services. The premiums are $13 per child each month, with each family paying no more than $39 a month.
In its report, Children Now says that the monthly payments place “an undue economic burden” on families with limited income and “prevent(s) families from getting and keeping health coverage,” leading to gaps in care.
“Eliminating premiums for Medi-Cal families is a simple, proven way to promote health care affordability for families and healthy equity by eliminating unnecessary health care costs for individuals who live on a limited budget, have critical health needs, and are often from communities of color,” the report says.
Children Now also found that premium collections were expected to bring in $64.2 million in the 2021-2022 fiscal year, but after paying a significant amount to a vendor for administration of the premium collection program, the savings to the state’s General Fund is estimated to be $8 million — equal to about $32.05 per premium-paying individual annually.
“Rather than paying a vendor to limit enrollment, California could better use those funds to cover more children (as more children would enroll in the absence of premiums) and ensure the delivery of higher quality care in Medi-Cal,” the report says.
Other supporters of the bill said the measure is needed to ensure thousands of Medi-Cal recipients receive affordable health care by eradicating existing cost barriers.
“As it stands, too many have to choose between healthcare and rent, food, or other necessities,” Linda Nguy, a senior policy advocate at the Western Center on Law and Poverty, another co-sponsor of the bill, said in a statement. “Even with incomes below $2,850 a month, people with disabilities who work part time are still expected to pay up to $250 every month on premiums, which is a huge financial burden — this bill will stop that.”
The bill was assigned to the Assembly Health Committee on Friday and could be heard March 13, according to the state’s legislative information site.
Madison Hirneisen covers California for The Center Square.
