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.
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
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.
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
AB 120 is a budget bill that amends AB
97, the 2017 Budget Act, to include revenue and expenditures related to
Medi-Cal is California’s Medicaid program.
 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.