On June 30, 2010, the waiver for Family PACT will need to be renewed. The Centers for Medicaid and Medicaid Service (CMS) needs to approve a waiver (a legal thing) for the federal government to fund this program.
The cost per year (in 2007 it was about $438 million) is offset by the federal government, who pays almost 2/3 to California. Every dollar that is spent on Family PACT saves almost $14.
Pay $438 million, save $6 billion. It's a great program and keeping it going is a no-brainer, right? Wrong. Governor Scharwzenegger's current budget proposal cuts funding to Family PACT reimbursements which means that some clinics will close because the medical staff won't be reimbursed for services. And if California can't get the federal funding, then the entire program will be scraped, which ultimately will cost the state that 6 billion... There's an old adage that goes "Cut off your nose to spite your face."
Bottom line for The Clinic!? It could close.
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