A large portion of the health savings will come from moving elderly and disabled people over to managed care plans.
Toby Douglas of the State Department of Health Care Services hopes it will mean fewer hospital visits and nursing home stays.DOUGLAS: "It's not about taking services away from this vulnerable population, but better coordinating the care, preserving their ability to be in the community, and providing more cost effective care."
The Governor also wants to move kids in the Healthy Families program into Medi-Cal, which would mean a 25 percent pay cut to those health plans.
Ellen Wu of the California Pan Ethnic Health Network is concerned less money will mean fewer providers for the nearly 900,000 children in Healthy Families.
WU: "When you're cutting payment by a quarter to the health
plans, the health plans are going to turn around and change their
payment to the providers."