Examination in a doctors office. (Joe Raedle/Getty Images)

SACRAMENTO (CBS / AP) Californias top health care official told lawmakers Tuesday she is confident the state can eliminate a health insurance program serving more than 860,000 children from low-income families without disrupting the quality of their care.

Lawmakers held a hearing in the state Senate wanting to know if the administration is prepared to make the transition without disrupting childrens medical care. California is eliminating its Healthy Families program and moving those children into the states Medicaid program in an effort to save a projected $73 million a year.

We do not want to throwno pun intendedthe babies out with the bathwater, said Assemblyman Tom Ammiano, D-San Francisco.

California Health and Human Services Secretary Diana Dooley said in an interview Monday that the shift will help streamline childrens health care and reduce government complexities. But state lawmakers and childrens advocates are concerned about the possibility of having childrens medical services disrupted.

Assemblyman Richard Pan, D-Sacramento, said he is concerned about the number of doctors willing to accept more Medi-Cal clients. State officials estimate that health providers will receive about 15 percent less under Medi-Cal, which is Californias version of the federal Medicaid program for the poor.

My main concern is that those children continue to have access to the care they need, Pan, a pediatrician, said in an interview Monday. Ultimately its about the quality of care.

The Department of Health Care Services has issued a strategic plan that proposes to move all 863,000 children enrolled in Healthy Families into Medi-Cal by Sept. 1, 2013. Families are expected to be moved in four phases, depending on whether their doctors and health plans already accept Medi-Cal. The state plans to start notifying parents next month.

According to the state, eliminating Healthy Families is projected to save the state $13 million this fiscal year and $73 million annually once the transition is completed.

We recognize these are austere times. The state employees who took a 5 percent pay cut took the pay cut as loyal dedicated public servants, Dooley said. I believe (health providers) will continue to serve even though there will be a reduction. It does require some sacrifice, not from the children, but will require sacrifice from the people who provide care.

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Health Care Shift To Affect 860,000 California Children