2021-2022 Budget of Opportunity and What It Means for the Healthcare Industry

2021-2022 Budget of Opportunity

The 2021-2022 Budget of Opportunity was updated by the California State Assembly Democrats and a week before California State Senate Democrats announced their Build Back Bolder budget outline. While the budgets covered numerous areas, both were aligned when it comes to some major initiatives related to the health care industry. Here are some pivotal points which will help you understand the budget, the changes that will come through in health care, and what that means for you.

Budget of Opportunity and Health Care Industry

The key factors involved in both the budgets are aimed to get the state closer to the main goal of universal health care coverage for all its citizens. Starting with steps to close the remaining gaps in the uninsured, the budget has plans which will help provide coverage and care for all.

With the COVID-19 crisis at our hands, the health proposals aim to provide urgent help for Californian families who require it and people who were disproportionately affected by the crisis. 

Here are some changes that are proposed in the budget that could mean some major changes in the health care industry if included in Governor Newsom’s May revise budget proposal 2021.

Covered California

Improving the affordability in Covered California is one of the prioritized investments by the state Senate and Assembly, which was not present in Governor Newsom’s January 2021 budget proposal.

Though the American Rescue Plan proposed by President Biden brought down the premiums for people who purchase their own health cares, there are still many Californians who cannot afford the high deductibles and out-of-pocket cost-sharing of the health plans. With the redirecting of the affordability assistance which California invested in for premiums two years ago, the deductibles and cost-sharing can be reduced, which in turn, will attract more Californians to get medical health insurance coverage.

Also Read: What you Need to Know about the Special Enrollment Period of 2021? 

Medi-Cal Expansions

The Medi-Cal expansion for more income-eligible undocumented citizens was another proposal that is prioritized by both the State and Assembly. This will help remove the unfair exclusions, and especially with the pandemic, the time is now to provide Medi-Cal care to people regardless of where they were born.

Medi-Cal Assets Test

The elimination of the Medi-Cal Assets test is another point that has been highlighted by both the Senate and the Assembly. This test is done to check the beneficiary assets but has long deprived seniors of getting Medi-Cal care for having a small amount of savings. This particular proposal will expand access for the seniors and disabled people to assess the care despite having emergency funds or savings.

Allied Brokers

We are a full-service insurance brokerage and have provided insurance services throughout California for over 60 years. If you want to know more about medical health insurance or car insurance, you can contact us at 650-328-1000