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Governor's Medi-Cal Cost-Cutting Plan Could Disrupt Benefits For Poor

Governor Schwarzenegger says the state can save money on the Medi-Cal program by making recipients prove their eligibility four times a year. Advocacy groups say that would cause many low-income Calif

Governor's Medi-Cal Cost-Cutting Plan Could Disrupt Benefits For Poor

Governor Schwarzenegger says the state can save money on the Medi-Cal program by making recipients prove their eligibility four times a year. Advocacy groups say that would cause many low-income Californians to lose their health benefits. KPBS reporter Kenny Goldberg has more.

Currently, adults on Medi-Cal have to prove their eligibility twice a year. The governor says by changing that to four times a year, the state could save $70 million annually. Some predict hundreds of thousands of recipients could lose their benefits as a result.

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Ellen Wu directs the California Pan-Ethnic Health Network . She says these people will still need care.

Wu : They’re probably going to wait until they get really, really sick, which is the least cost-effective way to provide people with care. And they’re going to go probably to the nearest emergency room.

The governor also wants to save money by cutting the rate Medi-Cal pays doctors by 10 percent. That’s being challenged in court.

Kenny Goldberg, KPBS News.