Most California counties claim federal reimbursements for prison health care do not cover the cost, and are refusing to sign new contracts, the Legislative Analyst’s Office reports.
Since 1997, federal policy allowed states to collect federal Medicaid reimbursement for low-income prisoners. However, in 2007 the health care service was put into receivership. Since then, the receiver has been able to collect those reimbursements.
The receiver currently has agreements with 12 counties, covering nearly three-fourths of the prisoners, notes the LAO.
That program is delivered through counties and allows matching funds to be drawn for reimbursements. The state pays those counties a $10 administrative fee per covered prisoner. However, some counties have not signed agreements, including a consortium of 35 rural counties that have balked at the low amount of overhead funding the state offers.
The legislative analyst estimates California would save $13 million if agreements could be reached with the counties opting out. The LAO calculates that solving those and other such problems, as well as expanding the state Medicaid program to qualify for 100 percent federal funding, would mean an additional $40 million in reimbursements for inmate healthcare.
Joyce Hayhoe, court-appointed spokeswoman for healthcare receiver J. Clark Kelso said her office concurs with the LAO report. “We appreciate their in-depth review,” said Hayhoe. Kelso’s legislative affairs liaison. Hayhoe said the office is continuing negotiations with counties to secure more Medicaid coverage agreements.
Gov. Jerry Brown contends California spends too much on prison medical services. The court-appointed receiver’s office reports spending $1.6 billion on inmate healthcare this year, a decline from the program’s $2 billion budget several years ago.
