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Published: January 16, 2022

Governor’s 2022-23 Proposed Budget Would Expand Access to Health Care in California

Governor Gavin Newsom released his 2022-23 Budget Proposal on Monday, January 10,2022. The budget proposal includes key investments to improve access to health care services and to support COVID-19 response efforts. California’s fiscal outlook looks strong for 2022-23 with a $286.4 billion budget and a projected $45.7 billion surplus, which includes $20.6 billion in General Fund for discretionary purposes. How would you spend California’s $45.7 billion budget surplus? Play CalMatters’ budget surplus game describing how you would use the surplus.

More than 20 percent of the Governor’s proposed budget is dedicated to health-related expenditures.

The budget includes:

  • COVID-19 Response – $2.7 billion COVID-19 response to bolster testing capacity, accelerate vaccination and booster efforts, support frontline workers, strengthen the health care system and battle misinformation
  • Insulin Affordability – Potential partnership with a contract manufacturer of insulin to make the cost of insulin more affordable and accessible
  • Expansion of Medi-Cal Coverage – Provide full-scope Medi-Cal coverage to all income-eligible adults aged 26 through 49 regardless of immigration status by January 1, 2024.
  • Reproductive Health
    • Increased flexibility for Medi-Cal providers to provide clinically appropriate medication abortion services by removing requirements for in-person follow up visits and ultrasounds, if not clinically indicated
    • Adding the human papillomavirus vaccine as a covered benefit under the Family PACT program
    • One-time funding of $20 million to the Department of Health Care Access and Information (HCAI) to provide scholarships and loan repayments to a variety of health care provider types that commit to providing reproductive health care services
    • One-time funding of $20 million in grant funding to HCAI to assist reproductive health care facilities in securing their physical and information technology infrastructure and to enhance facility security
  • Behavioral Health
    • $10 million to administer a competitive grant program to prevent and treat depression, as part of the California Initiative to Advance Precision Medicine
    • $26 million to HCAI to support training providers to build out the substance use disorder (SUD) workforce with a focus on opioid treatment
    • $96 million General Fund in 2022-23 and $61 million ongoing General Fund for the Medication Assisted Treatment (MAT) Expansion Project
    • $5 million to DHCS for the distribution of naloxone to homeless service providers
  • ACEs Provider Training – One-time $135.1 million over a three-year period to extend Medi-Cal provider training for Adverse Childhood Experience (ACEs) screenings.
  • Medi-Cal Community Based Mobile Crisis Services – Funding for multi-disciplinary mobile response services for crises related to mental health and substance use disorders as a new Medi-Cal benefit by January 1, 2023.
  • CalAIM – $2.8 billion for the upcoming fiscal year to implement CalAIM initiatives, which aim to achieve broad-based delivery system, program, and payment reform across the Medi-Cal program. CalAIM will apply a whole-person care approach that integrates health care and other social determinants of health to this statewide program, with a clear focus on improving health and reducing health disparities and inequities, including improving and expanding behavioral health care.
  • Proposition 56 (tobacco tax) Provider Payments – $176 million in General Fund to support reduced proposition 56 revenue caused by the decline in tobacco use.
  • Medi-Cal Provider Equity Payments -To promote patient-centered models of care, the Budget includes one-time $400 million ($200 million General Fund) for provider payments focused on advancing equity and improving quality in children’s preventive, maternity, and integrated behavioral health care.

CAFP will work with legislative offices and allies to support the Governor’s proposals to expand and improve health care in California. CAFP will also continue to work with the Administration and the Legislature to ensure California further builds the primary care physician workforce.

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