L.A. County expects more federal aid to fund health services for the poor

Los Angeles County expects more than $60 million from Washington to fund health services for the poor after President Obama signed into law a $26.1-billion state aid measure.

The money will prevent further cuts in health and mental healthcare services for patients on Medi-Cal, the government insurance program for the poor, and will support in-home care for the frail and elderly.

The Department of Health Services, which runs the county public hospital system, will receive $22 million, and the Department of Public Social Services, which manages the in-home care program for the elderly, will receive $26 million. The Department of Mental Health will receive more than $12 million.

Many state and county officials across the nation were hoping for the aid package, which passed the House of Representatives on Tuesday and was quickly signed by Obama.

State and local governments began receiving extra federal money to fund healthcare services for the poor after Congress in 2009 passed the $787-billion American Recovery and Reinvestment Act, a stimulus package aimed at preventing the nation from falling deeper into recession.

Tuesday’s action extends the additional funding into the first six months of 2011, which is expected to be the last such installment from Washington. The aid, however, will be lower than that in 2009 and 2010.

During those two years, for every $1 California and its local governments paid for the health programs, the federal government paid $1.60. But from January to March, the federal matching rate will drop to $1.41, and from April to the end of June it will decrease even further to $1.30.

Beginning July 1, the federal matching rate will revert to the previous rate of $1.

Nonetheless, L.A. County officials were relieved Tuesday as they had already counted on extra federal help when they approved their most recent budget. The officials had become nervous as some members of Congress raised concerns about the rising deficit, jeopardizing passage of additional federal aid.

“This has been the county’s No. 1 federal fiscal priority item,” said Ryan Alsop, an assistant chief executive for Los Angeles County.

The funding package does not fully resolve the Department of Health Services’ nearly $600-million deficit. The county is still talking with the U.S. Centers for Medicare and Medicaid Services regarding additional funding for that agency.

John Tanner, executive director of Service Employees International Union Local 721, which represents about half the county’s workers — including many in health services — said they are working with county health officials to obtain the additional funding. He was optimistic that state and federal officials will respond.

“This is the largest public safety net in America. It needs to be preserved and strengthened,” he said. “It needs to be ready for national health reform, it needs to be strengthened for that to succeed and I think that’s recognized by the leadership” in Sacramento and at the White House.

ron.lin@latimes.com

Times staff writer Molly Hennessy-Fiske contributed to this report.