New Rules Would Cut Health Care for 800

More than 800 people who now receive indigent medical care from the county would become ineligible for the program under tightened eligibility rules proposed by the Orange County Health Care Agency.

The stricter rules, which the Board of Supervisors will consider next week, are required under the terms of federal welfare reform and would affect about 3% of the 28,000 people who receive the health-care benefits.

The Health Care Agency is recommending that people whose income is at least double the federal poverty level lose eligibility for the Medical Services of Indigents program. Individuals earning more than $15,780 a year and couples making more than $21,220 would lose eligibility, said Janice Wirth, a manager at the Health Care Agency.

The federal welfare reform approved last year by Congress requires agencies to reevaluate the eligibility of programs like the indigent program to make sure that benefits are going to those who are truly needy.

The county decided to set the eligibility cap at 200% of the poverty level, which is slightly higher than the cap used by other welfare programs, Wirth said.

Some of the savings generated by the tighter eligibility rules might be used to pay larger reimbursements to private doctors and hospitals that provide the medical care. Wirth said the higher reimbursements could prompt more doctors and hospitals to participate in the program, resulting in more options for users.