Recent federal proposals to reduce Medicaid funding and constrict eligibility would negatively impact local hospitals, healthcare providers, businesses, and thousands of area residents, according to CenCal Health, the Medicaid managed care plan for Santa Barbara and San Luis Obispo counties.
CenCal Health provides health insurance to some 242,000 low-income people on the Central Coast.
Santa Maria resident Sara Macdonald knows personally what it means to have Medicaid health insurance.
“As a low-income senior and a cancer survivor, my life has been extended and is more healthful because I am eligible for Medi-Cal [in California, Medicaid is called Medi-Cal] and can see the local doctors I need to get and stay healthy,” said Macdonald, who volunteered to represent Santa Barbara County Medi-Cal members on the CenCal Health Board of Directors.
“Because I don’t own a car, I walk or take the bus to get around Santa Maria,” she said. “At ground level, I can really see the need for this safety-net program called Medicaid – for babies and school children from low-income families, neighbors with disabilities, seniors, and the unhoused.
“Our federal government must continue to show compassion for those who truly need assistance. We encourage all concerned to contact Congress in support of our local healthcare system and our most vulnerable residents.”
The health insurance provided by Medicaid plans like CenCal Health secures access to preventive care for children, pregnant women, the elderly, and disabled people, in addition to individuals who earn low wages.
“Preventive care leads to better health outcomes, keeps people out of the hospital, and supports a healthy workforce,” CenCal reports. “Without health insurance, people defer care, often until it’s potentially life-threatening, which in turn puts a strain on hospitals, leading to avoidable poor health outcomes, and the delivery of healthcare services that go uncompensated.”
For every government-funded dollar it receives, CenCal Health spends 93 cents to compensating local providers and hospitals for the medical benefits and services delivered to local health plan members.
Federal changes that would decrease this funding and associated revenue streams to providers would impact the local health care delivery system and the local economy, CenCal Health said.
“Smaller medical provider groups may need to reduce hours or downsize, employers may need to purchase costly health insurance for their staff, and rural hospitals relying on Medicaid may need to reduce their services or, in extreme cases, close their doors,” the provider said.
In the 463-square-mile district that includes Lompoc, Mission Hills, Mesa Oaks, Vandenberg Village, a portion of Vandenberg Space Force Base, and the area east toward Buellton, the Lompoc Valley Medical Center has served area residents since 1946.
“The potential impact of any Medicaid cuts on rural communities remains a concern,” said Yvette Cope, CEO of Lompoc Valley Medical Center. “A reduction in these funds has the potential to limit the range of services we can provide now and, in the future, and could directly impact our ability to provide timely access to those requiring care.
“We must be able to provide high-quality care to all our residents, including emergency services, surgery, cancer treatment, and other essential healthcare services.”
Destabilizing the safety net by imposing new limitations on Medicaid funding and eligibility would be harmful to the San Luis Obispo and Santa Barbara communities, Cen Cal said. “Medicaid not only supports those insured by the program, but also those hospitals, clinics and businesses – and their employees – that rely on Medicaid funding to sustain their healthcare services.
“CenCal Health, together with leaders from local government, the healthcare profession and the business community, is advocating against Congressional cuts to Medicaid to protect healthcare on the Central Coast,” said Marina Owen, CenCal Health CEO. “Join us in asking policymakers to protect Medicaid funding. Our families, children and economy are counting on it.”
More on CenCal Health is available at cencalhealth.org.