Los Angeles, Calif., February 21, 2008 – AIDS Project Los Angeles (APLA) today urged the governor and Legislature to re-consider cuts to Medi-Cal provider rates that were approved last weekend, and to look for revenue-generating solutions to the state's budget deficits.

On Saturday, Gov. Schwarzenegger signed several bills intended to help alleviate a projected $16 billion state deficit with mid-year budget cuts. Included in the package was a 10 percent reduction to Medi-Cal provider rates, which will take effect on July 1. While the cut is expected to save California an estimated $650 million in general funds, it would also result in a similar loss in matching federal funds.

"Medi-Cal reimbursement rates are already so low that half the doctors across California turn away the 6.4 million children, seniors and people with disabilities on Medi-Cal," said Craig E. Thompson, APLA's executive director. "These cuts will just make it much harder for people with AIDS and other diseases to access care and treatment.

"California's budget woes cannot be solved simply by cutting programs serving California's sick and needy," Thompson said. "The state needs to preserve these safety net programs for people who have no alternative. Legislators must find ways to generate new revenue to solve this budget mess. California does not have a health care spending problem. We have a revenue problem, and the Legislature cannot expect the state to deal with twenty-first century problems with twentieth century revenues."

Thompson commended legislators for opposing other proposed cuts to Medi-Cal, including the elimination of both Medicare Part B premium payments and adult dental benefits.

"These Medi-Cal programs are an integral part of the care system for low-income Californians who are living with HIV/AIDS," Thompson said. "One-third of people with HIV have oral complications resulting from their disease. What's more, dentists are often the first to identify signs of HIV opportunistic infections often overlooked by general practitioners. Eliminating these benefits now would result in health problems for our community in the future."

AIDS Project Los Angeles (APLA), one of the largest non-profit AIDS service organizations in the United States, provides bilingual direct services, prevention education and leadership on HIV/AIDS-related policy and legislation. Marking 25 years of service in 2008, APLA is a community-based, volunteer-supported organization with local, national and global reach. For more information, visit www.apla.org.