AIDS Project Los Angeles Warns of Governor's Budget Proposal to Raise Cost of Vital Treatment for
Lowest-Income Californians Living with HIV/AIDS

Initial plan could make life-saving HIV/AIDS drugs inaccessible among state's poorest

Los Angeles, Calif., January 10, 2011 -- AIDS Project Los Angeles (APLA) today warned that California Governor Jerry Brown's proposed budget may jeopardize the health of Californians living with HIV/AIDS by forcing low-income residents to begin paying a share of the cost of life-sustaining medical treatments.

"We cannot continue to foist the burden of the state's budget woes on the most vulnerable Californians," said APLA Executive Director Craig E. Thompson after today's budget announcement, which proposed adding the cost-sharing measures to the state's AIDS Drug Assistance Program (ADAP).

"For the 75 percent of ADAP participants who live in abject poverty, requiring cost-sharing for life-saving drug therapies could mean disaster," Thompson added, pointing to concerns that cost-sharing could force those living with HIV/AIDS to forgo treatment. "That's likely to add to the burden on crowded emergency rooms -- where the state will pay much more in the long run."

The proposal would expand ADAP share-of-cost requirements, the amount a patient must pay for HIV drugs, for those whose income exceeds 100 percent of Federal Poverty Level (FPL) -- about $10,830 for an individual. Los Angeles County accounts for 40 percent of ADAP program expenditures.

ADAP provides HIV/AIDS drugs to over 39,500 low-income uninsured or underinsured Californians each year. Demand for ADAP is expected to increase in the coming year, due in part to the national economic downturn. The $518 million program is funded by $164 million in state general funds, $98 million in federal money and over $257 million in drug rebates that the state earns from pharmaceutical companies.

"This proposal would deal another blow to the state's HIV/AIDS budget while we're still reeling from the previous administration's cuts," Thompson added, referencing an $85-million reduction that zeroed out funding for HIV prevention and sharply curtailed other services. On average, there are eight new HIV infections daily in Los Angeles County.

Thompson also expressed concern about cuts proposed to other vital public health programs, including Medi-Cal, Healthy Families, Supplemental Security Income (SSI) payments, and In-Home Support Services (IHSS).

"ADAP is vital to those we serve, he said, "but so are Medi-Cal and other safety net programs. The state must find new revenues to sustain programs that provide health care and other support to the state's most vulnerable people."

The proposed budget includes a 10 percent reduction in Medi-Cal reimbursement rates to physicians and pharmacies, along with home health and other care providers.

More than half of all low-income people living with HIV/AIDS get their care and treatment through Medi-Cal. Because Medi-Cal's reimbursement rates for doctors are now among the lowest in the nation, doctors are exiting the program and many Medi-Cal patients – including those with HIV/AIDS – are finding it increasingly difficult to access the medical care necessary to stay healthy.

"Without a clear strategy to increase revenues and make reasonable reforms, there will no longer be a safety net in California," explained Thompson. "The crisis will only get worse."

More Californians and Angelenos are living with HIV/AIDS than ever before, at 150,000 and 63,000, respectively.

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. With more than 25 years of service, APLA is a community-based, volunteer-supported organization with local, national and global reach. For more information, visit www.apla.org.