San Diego County

San Diego County initiative to reduce health care costs moves forward

As proposed by Vice Chair Terra Lawson-Remer, the plan calls for increasing reimbursement rates for Medi-Cal recipients and reduce the cost of prescription drugs for San Diegans

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County leaders say low Medi-Cal reimbursement rates are affecting more than just the people who use it. NBC 7’s Shellye Leggett has more on the plan to expand access and drop drug prices. 

The county Board of Supervisors Tuesday voted 4-0 in favor of proposals intended to make quality healthcare more accessible and affordable for residents.

As proposed by Vice Chair Terra Lawson-Remer, the plan calls for increasing reimbursement rates for Medi-Cal recipients and reduce the cost of prescription drugs for San Diegans, via advocacy at federal and state government levels.

In a news release from Lawson-Remer's office, the board also voted to appoint her and Supervisor Monica Montgomery Steppe to serve on a new ad hoc subcommittee that will:

  • review information collected by Sarah Aghassi, interim chief administrative officer, and stakeholder feedback;
  • provide strategies and opportunities to increase Medi-Cal reimbursement rates, along with new or additional sources of funding; and
  • develop findings and recommendations submitted to the board.

Although supportive of other proposal recommendations, Supervisor Jim Desmond cast a "no" vote on establishing an ad-hoc committee. He said all supervisors should be involved when it comes to input on Medi-Cal reimbursement.

Before the vote, Lawson-Remer said that Medi-Cal was one of the issues that "is really technical ... but it is so important to the lives of so many people."

According to Lawson-Remer's office, nearly 1 million people in the county, including close to 325,000 children, rely on Medi-Cal, California's Medicaid program, as a "vital support system to safeguard their health and well-being."

American Hospital Association data shows that hospitals received payments equivalent to only 88 cents for every dollar spent on Medicaid patients in 2020, resulting in underpayment totaling nearly $25 billion, Lawson-Remer's office said.

"The longstanding issue of low reimbursement rates makes it harder for people to find care, contributes to a shortage of healthcare workers, and results in more San Diegans winding up the E.R. -- which puts a huge strain on the region's entire healthcare system and affects all of us," said Lawson- Remer.

"We must deliver on the pledge of Medi-Cal and ensure that access to healthcare is not a privilege limited by circumstances, but a fundamental right upheld for all," she added.

Supervisor Joel Anderson was absent from Tuesday's meeting, as he was recovering from a minor medical procedure, according to his office.

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