California Senate and Assembly budget committees approved plans to use state tobacco tax revenue to increase provider payments, according to a Los Angeles Times report.
Here are five things to know.
1. California voters approved a tobacco tax last November. The measure took effect April 1, increasing the cigarette tax by $2 per pack, with a similar increase for other tobacco products.
2. Democratic California Gov. Jerry Brown has proposed using tobacco tax revenue to expand spending on the state's Medicaid program, Medi-Cal, according to the report.
3. However, the state Senate and Assembly have their own proposals. The Assembly proposed spending the entire $1.1 billion in projected tobacco tax revenue next budget year, while the Senate proposed a gradual increase in spending through fiscal year 2020-21, reports LA Times. The Senate allocation next budget year would be less than $350 million.
4. Both the Senate and Assembly are in favor using the additional revenue to increase provider payments. Under the Assembly proposal, about $857 million would be set aside for physician and dentist "incentive payments," according to the report. These payments would be once a year, based on the provider's Medicaid caseloads. Under the Senate proposal, $150 million would go toward physician rate increases next year, which "would be targeted for those working in high-need areas and specialties," according to the report. The funding would reach $700 million by 2020.
5. H.D. Palmer, spokesperson for Gov. Brown's department of finance, told the LA Times Gov. Brown continues to support using tobacco tax revenue to expand spending on Medi-Cal.
Read the full report here.
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