ADEA State Update

California Budget Increases Spending for Safety Net Programs and Payments to Dentists

(State Policy, Insurance, Medicare and Medicaid, Funding, Medicare and Medicaid Services, Dental Health, Oral Health, Tobacco) Permanent link   All Posts


On June 27, Gov. Jerry Brown (D-CA) signed AB 120, The Budget Act of 2017, into law before the new fiscal year began on July 1.[1]

Under the new budget, payments made to physicians and dentists who treat Medi-Cal patients will be enhanced by money generated by the tobacco tax increase contained in Proposition 56 and approved by voters last November.[2] The new budget allocates up to $140 million for supplemental payments on dental services and $325 million for physician services. 

According to a public notice issued by the California Department of Health Care Services (DHCS), the state agency projects the overall budgetary impact of the proposed supplemental payments to result in an aggregate expenditure increase of $350,620,000 in total funds, including the $140,000,000 in Prop. 56 funds. 

The 2017-2018 state budget also provides $30 million to the state dental director's office and will fully restore adult Denti-Cal benefits in 2018.[3]

Gov. Brown’s Office issued a statement with the passage of AB 120 that said, “California will continue its large investments in the Medi-Cal program—including new revenue from Proposition 56—to serve millions of people who rely on this program for health care.”

[1] AB 120 is a budget bill that amends AB 97, the 2017 Budget Act, to include revenue and expenditures related to Proposition 56.

[2] Medi-Cal is California’s Medicaid program.

[3] Specifically, the Budget includes $34.7 million in 2017 18 and $72.9 million General Fund annually thereafter to restore full dental services for adult beneficiaries in the Medi Cal program, effective January 1, 2018.

Duggan Dental