By denying Medi-Cal benefits to more than 1 million people, Gov. Arnold Schwarzenegger's proposed budget would cost Californians with health care insurance more than $290 per family per year in added premiums to cover the new uninsured, according to a new study.
The report was prepared by consultant Peter Harbage, whose study on the "hidden tax" paid by the insured to make up for uncompensated care was widely cited last year by Schwarzenegger in his unsuccessful campaign for universal health care.
"Any time the state is going to move to take money out of Medi-Cal, those costs are going to get transferred somewhere," Harbage said in an interview.
When a hospital treats a person in an emergency room or performs surgery on someone who can't pay their bill, Harbage said, "the hospital, like any other business, is going to try to recoup its cost by charging other people more."
California already has 6.5 million uninsured people. The proposed budget would add another 1 million people, the largest health care rollback in state history, according to an earlier study by Health Access California.
The consumer advocacy coalition also commissioned Harbage's study, which used the same methodology as the one that Schwarzenegger lauded while trying to rally support for his health plan.
"We thought it was an important contribution to the debate last year and should be part of the debate this year," said Anthony Wright, executive director of Health Access.
Because of the state's estimated $15.2 billion budget deficit, the governor has called for tighter Medi-Cal eligibility requirements and reduced rates paid to health care providers.
Lisa Page, a spokeswoman for the governor, did not dispute the new study's findings.
"It underscores the need for comprehensive health care reform, as the governor has outlined," Page said.
Chris Ohman, president and CEO of the California Association of Health Plans, which represents insurers, said cuts to Medi-Cal "hurt all of us."
"Doctors and hospitals are left with no option but to cover their Medi-Cal costs by charging people with insurance more for their care," Ohman said in a statement.
Call Aurelio Rojas, Bee Capitol Bureau, (916) 326-5545.
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