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Healthy Families May Face Disenrollment

The Department of Finance notified the Managed Risk Medical Insurance Board (MRMIB) that $130M in state General Funds would need to be cut from the Healthy Families program. Healthy Families, administered by MRMIB, is California’s low-cost insurance program for children, teens and pregnant women with incomes under than 250% FPL. When considering the 2:1 match provided by the federal government, this would translate into a 37% shortfall ($390M) for the Healthy Families budget.

MRMIB officials are discussing disenrollment and awaiting the fate of two measures in the Legislature—ABX1 21 and SBX1 9— that could extend a managed care tax for the program. Any changes to Healthy Families would need to be approved by MRMIB, the Department of Finance, and federal officials. An update regarding changes to the Healthy Families program will be provided at the next MRMIB meeting September 14.

For more, see this feature on California Healthline.