Medi-Cal Provider Payments During Period Without State Budget

The State of California does not have an enacted fiscal year (FY) 2010-11 budget. The Department of Health Care Services (DHCS) directed the fiscal intermediary, HP Enterprise Services, to continue to pay Medi-Cal non-institutional providers per federal mandate and continue to pay Medi-Cal institutional providers from the Medical Providers Interim Payment (MPIP) fund until the loan was exhausted. The MPIP fund was exhausted with the August 19 warrant release date, equating to an Electronic Fund Transfer (EFT) deposit date of August 23. As a result, Medi?Cal institutional providers previously paid from the MPIP will no longer receive payment until enactment of the state budget.

Hospital and nursing home institutional provider claims will continue to be paid without a budget in 2010. This action was taken pursuant to the American Recovery and Reinvestment Act of 2009, which requires, as a condition of receiving an increased federal match that these entities be paid timely. Reimbursing Medi-Cal hospitals and nursing homes directly from state coffers lengthened the period of availability of MPIP funds for other Medi-Cal institutional providers paid from the MPIP fund during the extended no budget period.

Medi-Cal institutional providers, except for the institutional provider types listed below, will not receive payment until the FY 2010-11 budget is enacted.