On June 22, 2017, the U.S. Senate released the BCRA which would make dramatic cuts to Medicaid and severely limit Medi-Cal’s ability to provide health coverage to PLWH in California.7 A similar bill passed by the U.S. House of Representatives would have cut Medicaid nationwide by $834 billion over ten years.8
The BCRA would radically restructure the Medicaid program by converting it to a per capita cap or block grant, ending the federal-state financing partnership in which the federal government pays a fixed percentage of state Medicaid costs. The BCRA would also effectively end the ACA’s Medicaid expansion by gradually reducing the federal government’s share of Medicaid costs for expansion enrollees.
Together these changes would result in a massive fiscal shift from the federal government to the states and add billions in additional costs to the state of California. A recent analysis found that similar changes would result in nearly $6 billion in additional costs to California in 2020 and more than $24 billion by 2027.9 In response to these changes, California would need to make difficult budget decisions to either fill in gaps in federal funding or scale back Medi-Cal eligibility, benefits, or provider payments.
Limits on Medicaid financing and coverage would have a detrimental impact on California’s efforts to provide care and treatment for PLWH and to reduce new HIV infections. It is important for policymakers to understand the threats the BCRA poses to PLWH and other vulnerable communities in California.