California ACEP -The Medi-Cal Increase

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Elena Lopez-Gusman
Executive Director, California ACEP |

American College of Emergency Physicians

The Legislature passed the first Medi-Cal rate increase for emergency physicians in 20 years. This was made possible by the renewal of the state’s Managed Care Organization Tax. This tax on managed care plans will provide an opportunity to raise funds, match them with federal dollars, and provide resources to invest in the state’s health care infrastructure, including the largest Medi-Cal rate increase in California history. The initial proposal included rate increases for primary care providers and mental health providers to 87% of Medicare, but did not include emergency physicians.

California ACEP staff and member physicians engaged in grassroots efforts to encourage the Governor and the legislature to include emergency physicians in the final language. Our advocacy efforts literally paid off!

Starting in 2025, $200 million will be devoted annually to reimbursement rates to emergency physicians. As you are painfully aware, your Medi-Cal reimbursement rates have not increased in 20 years, despite you caring for a disproportionate share of the Medi-Cal population. This increase will take our rates from somewhere between 55-60% of Medicare reimbursement to 80%.