[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6041356,"mediaKeyId","3724118-b4e6f1d7b5be0781025b33b610796ad2","parentId",3724118,"title","UC leaders warn congressional reconciliation proposals could put Medi‑Cal funding and supplemental payments at risk","audioSeconds",1284,"startMs",2694000,"endMs",3978000,"viewUrl","/Search/View?dp=1&key=3724118-b4e6f1d7b5be0781025b33b610796ad2&start=2694&end=3978","thumbnailUrl","https://assets.pipeline.soar.com/3724118-b4e6f1d7b5be0781025b33b610796ad2/thumbnail_2694000.jpg","articleUrl","/articles/6041356/California/UC-leaders-warn-congressional-reconciliation-proposals-could-put-MediCal-funding-and-supplemental-payments-at-risk","mediaUrl","https://secure.pipeline.soar.com/6041356-e25056297391506798e45ddf865fac21/orig.mp4?Expires=1771098070&Signature=e~g4XA~rukJO~mg4UEKcPHKjzCgXxuzp-sz6BMQGG3wNybFvdukDKw17yvYxgQmWT8LAzzZr9Eu0d3PR6TUCSc9OVLj4EIaZ32XLpFKSc36QEczY7LAQwbmAXJ64cbTltLnSd~JUu7LHiGcFgcguQX38hnR2UOR5kZgt3KA5W43c1I~KLeSnrZodLcGkzXXnJwyXA51UeBQG~YIeogTh4G43WONAxjD~-rCBvmyw~3NtbR8LIz1fKV-g1sk5bozupJ7v~X~i90Z~0yXy-~1PLWTw-1gTug8xmyGp0158nlhbNNdhYsXaj~x34lMz3BdnlmYh~DOZ3-WyFS7ybWdZDA__&Key-Pair-Id=KUT5TJCACFTXG","author","University of California","date","2025-05-11T00:00:00Z","article","Senior University of California officials and partner advocates briefed the Health Services Committee on threats to Medi‑Cal financing arising from the federal budget reconciliation process and related executive actions.

Tam Ma, leader of UC’s health policy team, provided an overview of Medi‑Cal’s role in California and UC’s participation in the safety net. \"System wide, one of our inpatient days and 20% of our revenue comes from Medi‑Cal payments,\" Ma said, noting Medi‑Cal covers about 15 million Californians and that federal funds finance roughly two‑thirds of the program.

Erica Murray, president and CEO of the California Association of Public Hospitals and Health Systems (CAPH), described the reconciliation process and the current Energy and Commerce markup that includes proposed Medicaid cuts. Murray said much of UC's Medi‑Cal funding comes from supplemental payments, including state‑directed payments (SDPs) and intergovernmental transfers that match state and local contributions with federal dollars. \"If this policy of capping state directed payments to Medicare levels were to go into effect, it would, in effect, wipe out the $1,800,000,000 that we had just secured for 2025 and beyond,\" Murray said.

Panelists explained that supplemental payments currently make up a majority of UC's total Medi‑Cal payments; Ma said approximately 42% of Medi‑Cal total payments are base payments and about 58% come from supplemental payments. Presenters warned that limiting or capping these supplementals, restricting provider or MCO taxes, or other reconciliation proposals could materially reduce funding that helps hospitals remain solvent and maintain services for Medi‑Cal enrollees.

Speakers also addressed other legislative and executive risks: proposals under consideration included work requirements, more frequent eligibility checks, and targeted FMAP changes for states that provide state‑only coverage for undocumented populations. Murray cautioned the markup was fluid and could change as amendments are considered, but she emphasized the scale of potential impacts and urged continued federal advocacy.

Committee members asked how increased numbers of uninsured or \"frictionally uninsured\" patients would affect UC hospitals and the safety net. Santiago Munoz of UCLA Health said current system capacity is high and that higher uninsured rates could lead to patients deferring care and eventually presenting sicker; panelists noted uncompensated care dollars and supplemental payments would be even more important in that scenario.

Ma said UC's federal government relations team has asked California's members of the House Energy and Commerce Committee to oppose the proposed cuts and that UC leaders are making data‑driven cases to congressional offices about the systemwide impacts.

The committee took no formal vote. Presenters urged continued advocacy at the federal and state levels and said they would monitor the reconciliation process and the May state budget revision for California.","mediaType","Video","parentTitle","Health Services Committee 2025-05-11","oneSentenceSummary","UC officials and partners detailed how proposed federal reconciliation measures could reduce Medi‑Cal supplemental payments, threaten Disproportionate Share Hospital (DSH) funding and jeopardize access in California; they urged lawmakers to protect Medicaid financing.","taxTitle","University of California, Boards and Commissions, Executive, California","taxId",76757,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6041361,"UCHealth officials explain 340B drug program and warn proposed federal changes could threaten about $1 billion in savings",1156,1190000,2346000,"/Search/View?dp=1&key=3724118-b4e6f1d7b5be0781025b33b610796ad2&start=1190&end=2346","https://assets.pipeline.soar.com/3724118-b4e6f1d7b5be0781025b33b610796ad2/thumbnail_1190000.jpg","/articles/6041361/California/UCHealth-officials-explain-340B-drug-program-and-warn-proposed-federal-changes-could-threaten-about-1-billion-in-savings","https://secure.pipeline.soar.com/6041361-3246b5ac3ecc93387832033a3b1f3a9b/orig.mp4?Expires=1771098070&Signature=ev43oauQ9LF7AC6zSPGlDSV289DUJ~C3Tp4GXmXQ2j~9d5kuI2IWarQHq6OOjYEngCa0CSgPOxPwzEE2~dBXgTZTXNb1W3YF8ItQcpnCivmim-Ff9f9zfmj5HEbK1OlrqrQ0nTekkmQ9HkbzRLBhG4HYoPpkqepKaacw-Y8~t5eU9P2K7cO2kwyya9-~~Z-fbOmXzESlSImvACA1v-avFYMmXVZ3Rgz48i3fd0LbIvNz7rsAl8DuFcyzYubQuFj2QapualBSqmCI9QkppIltSA24A5zXKQcq3KM8eC8b4fnWip~OYJmb1fRY3xse8~Z7RaWrlkbGFMt6L7CuR5SmjQ__&Key-Pair-Id=KUT5TJCACFTXG","University of California pharmacy leaders gave the Health Services Committee a detailed briefing on the federal 340B drug discount program, explaining how the program generates savings UCHealth directs to community services and pharmacy access.

Amar Shamra, identified as System Manager for UCHealth’s 340B program, explained that 340B is a federal drug‑discount program created by Congress in 1992 under the Public Health Service Act and overseen by the Health Resources and Services Administration (HRSA). \"It requires manufacturers to provide a discount on outpatient drugs,\" Shamra said, and UCHealth uses the savings to fund prescription assistance, subsidize specialty care and expand access at in‑house and contract pharmacies.

Shamra told the committee that UCHealth operates 18 covered entities eligible for 340B: 11 disproportionate‑share hospitals, three hemophilia treatment centers, two federally qualified health centers, one children's hospital and one Ryan White clinic. He described the mechanics: UCHealth or its wholesalers purchase outpatient drugs at discounted 340B prices, and UCHealth may arrange dispensing through contract pharmacies to reach patients in communities without UC‑operated pharmacies.

Committee members asked how the payment and margin example on the slide applied to different payers. Shamra clarified the hypothetical showed commercial and Medicare payers as the reimbursement example and said contract pharmacies accept a dispensing fee while UCHealth retains margin that can be reinvested in community services.

Debate on federal policy followed. The presenters said HRSA audits have occurred and another audit was scheduled in June; UCHealth reported regular internal and independent audits and about 30 FTE working on 340B compliance. Committee discussion raised the possibility that recent executive actions on drug pricing or congressional reconciliation proposals could reduce 340B discounts. UC leadership said such changes could have a material impact: in the meeting UCHealth representatives estimated roughly $1 billion in annual savings systemwide are generated through the 340B program and that a significant federal intervention could remove that source of funds.

Regents and an alumni regent who represents a contract pharmacy discussed \"double discount\" concerns in the marketplace, where manufacturers can face duplicate discounts if payers and covered entities are not correctly identified in claims. Brian Komodo, introduced as an alumni regent and contract pharmacy representative, described how those identification failures can create the appearance of duplicate discounts and complicate compliance.

Presenters emphasized compliance and program integrity. Shamra noted the program is voluntarily administered by manufacturers but subject to HRSA oversight and that HRSA or manufacturers may audit covered entities and contract pharmacy arrangements. \"If there's noncompliance that's identified, HRSA audits can trigger significant repayments,\" he said, and UCHealth conducts self‑audits and maintains internal legal and risk controls to withstand audits.

The committee did not take formal action on 340B at the meeting; presenters said they would continue monitoring federal policy developments and report back as needed.","Pharmacy leaders described the 340B outpatient drug discount program, how UCHealth uses it to expand pharmacy access and community services, and warned that federal policy changes or executive actions could materially reduce the program's savings; UCHealth reported robust internal controls and HRSA audits.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6041365,"UCHealth presents strategic plan as budget tightens, highlights Medicaid, ambulatory access and partnerships",0,3124000,"/Search/View?dp=1&key=3724118-b4e6f1d7b5be0781025b33b610796ad2&start=3124&end=3124","https://assets.pipeline.soar.com/3724118-b4e6f1d7b5be0781025b33b610796ad2/thumbnail_3124000.jpg","/articles/6041365/California/UCHealth-presents-strategic-plan-as-budget-tightens-highlights-Medicaid-ambulatory-access-and-partnerships","https://secure.pipeline.soar.com/6041365-53d89f0af0f045895351fc119e17c93a/orig.mp4?Expires=1771098070&Signature=gQ8Z5~dkW1QbUrFk8uDjRU1VxLt8puu35lWQ0NpNOTtJY8qCqUeUHVMH9g9SEAZxIbNRMCGqf3MRM8FmtSfJLKVf2aSSEotnvzS1igvQGD5B63ldzatLS-PKAtE7cCCwMhh4ZSoqRyPRWXMk-H8Oei6ChAOKvhH2jD3hK69ViINCLiY41kk0VmVo4f~KphFyhofDTQvi0y-9x-7NyEP5rbbfsC7iVdFJMVbajtwVA3AiuQt3vfxlHO6UjEnMy~dFSwOsc4R3n3H2kaGmj77Via1Wpd00FTLOcUqshy4vGI8ez4T~w5u9O9wIxSe9KMVlCSfSU4xLN6-L3ZyonER7Iw__&Key-Pair-Id=KUT5TJCACFTXG","Executive Vice President David Rubin told the University of California Health Services Committee that UCHealth is moving forward with a five‑pillar strategic plan while absorbing budget pressures and payment risks from Medicaid and Medicare.

Rubin, who introduced the plan at the committee meeting, said the strategy focuses on federal and state engagement, network development, ambulatory access and experience, population‑health data and innovation, and systemwide governance. \"We submitted a budget that is down over 6% from last year,\" Rubin said, adding that the system is absorbing mandatory staff cost increases and reallocating funds to priority initiatives.

The plan, Rubin said, includes creating an office of strategic partnerships to coordinate Medi‑Cal and Medicare strategy and building systemwide governance for Medi‑Cal, along with a rapid response team for Medicaid. \"We're actually going to build capability at UCHealth to support that,\" he said. Rubin also highlighted investments in ambulatory access, enterprise analytics and EPIC tools to standardize proactive care across campuses.

Regents pressed for details on the budget tradeoffs. Regent Bihari asked about a reported 62% reduction in “other designated funds” and which programs were affected. Rubin answered that some programs (for example, the anatomical donation program overseen by Brandy Schmidt) had their funding reclassified rather than cut and that campus assessment funds were adjusted to avoid double charging deans. \"It was just moved into the campus assessment category,\" Rubin said.

Regent Grama asked how the hiring freeze and FTE reductions would be managed so essential positions are preserved. Rubin described a project management review that asked each direct report to prioritize positions aligned to the strategic framework and to work with campus CEOs and vice chancellors to protect roles that deliver systemwide value.

Rubin described the budget arithmetic: the plan covers about $1.6 million in mandatory increases for non‑represented staff, a workforce reduction line of about $3.8 million and a reserve of roughly $1.0 million for an office of strategic partnerships and enterprise analytics. He said the net reduction in the submitted budget was in the range of $2 million to $3 million but noted the figure folds in offsets and that natural growth would have been higher without cuts.

The strategic plan also highlights physician well‑being and representation for clinical faculty; Rubin said petitions by clinical faculty to join the Academic Senate were not successful but spurred conversations about alternate representation models.

Rubin told the committee the administration will return with additional work on employee benefit participation and student health programs later in the year. He said a comprehensive vision on student health is expected back in July or September.

Looking ahead, Rubin said UCHealth will continue targeted advocacy in Sacramento and Washington, D.C., to protect federal and state health financing that supports UC's safety‑net role.

The committee had no formal vote on the strategic plan at the meeting; the presentation was a discussion item and the administration identified follow‑up topics to return to the committee.","Executive Vice President David Rubin briefed the University of California Health Services Committee on a systemwide strategic plan that prioritizes federal/state engagement, ambulatory access, data-driven care and a new office of strategic partnerships while absorbing a budget reduction of about 6%.","actionData","errors"]

Article not found

UC leaders warn congressional reconciliation proposals could put Medi‑Cal funding and supplemental payments at risk

UCHealth officials explain 340B drug program and warn proposed federal changes could threaten about $1 billion in savings

UCHealth presents strategic plan as budget tightens, highlights Medicaid, ambulatory access and partnerships