Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law provides for the reimbursement of providers under the Medi-Cal program.

The Lanterman Developmental Disabilities Services Act requires the State Department of Developmental Services to contract with regional centers to provide services and supports to individuals with developmental disabilities. Under existing law, the regional centers purchase needed services for individuals with developmental disabilities through approved service providers or arrange for those services through other publicly funded agencies. Existing law establishes specified rates to be paid to certain service providers and the rates to be paid for certain developmental services. Existing law requires that rates to be paid to other developmental service providers either be set by the department or negotiated between the regional center and the service provider.

This bill would state the intent of the Legislature to enact legislation to stabilize funding for the Medi-Cal program and to provide rate increases for Medi-Cal and developmental services providers.

 THIRD READING  

Bill No: ABX2 2

Author: Bonta (D)

Introduced: 7/2/15

Vote: 21

ASSEMBLY FLOOR: 50-28, 8/31/15 - See last page for vote

SUBJECT: Medi-Cal and developmental services: funding: rates

SOURCE: Author

DIGEST: This bill states it is the intent of the Legislature to enact legislation that would stabilize funding for the Medi-Cal program and provide rate increases for providers of Medi-Cal and developmental services.

ANALYSIS: On June 19, 2015, the 2nd Extraordinary Session of the California State Legislature was convened pursuant to a proclamation by Governor Brown, which read:

WHEREAS the state’s recent expansion of health care coverage has resulted in more than four million additional Californians receiving coverage through Medi– Cal; and

WHEREAS to date, the managed care organization tax has provided a stable source of funding to help pay for the costs of the health care expansion; and

WHEREAS the federal government has issued guidance to the state that it cannot extend the managed care organization tax in its current format; and

WHEREAS the state will be forced to make more than $1 billion in program cuts beginning next year if the managed care organization tax is not extended; and

WHEREAS the state’s General Fund cannot afford to provide additional rate increases for providers of services for Medi–Cal recipients and consumers with developmental disabilities; and

WHEREAS the state’s General Fund cannot afford to permanently maintain a restoration of seven percent of hours in the In–Home Supportive Services program; and

WHEREAS these extraordinary circumstances require the Legislature of the State of California to be convened in a special session.

NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with Section 3(b) of Article IV of the Constitution of the State of California, hereby convene the Legislature of the State of California to assemble in extraordinary session in Sacramento, California, on the 19th day of June, 2015, at a time to be determined, for the following purposes:

To consider and act upon legislation necessary to enact permanent and sustainable funding from a new managed care organization tax and/or alternative fund sources to provide:

1. At least $1.1 billion annually to stabilize the General Fund’s costs for Medi–Cal; and

2. Sufficient funding to continue the 7 percent restoration of In–Home Supportive Services hours beyond 2015–16; and

3. Sufficient funding to provide additional rate increases for providers of Medi–Cal and developmental disability services.

To consider and act upon legislation necessary to:

1. Establish mechanisms so that that any additional rate increases expand access to services; and

2. Increase oversight and the effective management of services provided to consumers with developmental disabilities through the regional center system; and

3. Improve the efficiency and efficacy of the health care system, reduce the cost of providing health care services, and improve the health of Californians.

I FURTHER DIRECT that as soon as hereafter possible, this Proclamation be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Proclamation.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 16th day of June 2015.

EDMUND G. BROWN JR. Governor of California

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 9/4/15)

None received

OPPOSITION: (Verified 9/4/15)

None received

ASSEMBLY FLOOR: 50-28, 8/31/15

AYES: Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins

NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang, Chávez, Dahle, Beth Gaines, Gallagher, Gatto, Hadley, Harper, Jones, Kim, Lackey, Linder, Maienschein, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk

NO VOTE RECORDED: Grove, Ridley-Thomas

Prepared by: Melanie Moreno / HEALTH /

9/4/15 18:04:23

**** END ****

ASSEMBLY THIRD READING

ATR Bill Id:AB 2 X2

Author:(Bonta)

As Introduced Ver:July 2, 2015

Majority vote

SUMMARY: States it is the intent of the Legislature to enact legislation to stabilize funding for the Medi-Cal program and to provide rate increases for Medi-Cal and developmental services providers.

FISCAL EFFECT: None

COMMENTS: According to the author, this bill is a vehicle for specific legislation that responds to the Governor's call for a special session.

BACKGROUND: On June 19, 2015, the Second Extraordinary Session of the California State Legislature was convened pursuant to a proclamation by Governor Brown, which read:

WHEREAS the state's recent expansion of health care coverage has resulted in more than four million additional Californians receiving coverage through Medi– Cal; and

WHEREAS to date, the managed care organization tax has provided a stable source of funding to help pay for the costs of the health care expansion; and

WHEREAS the federal government has issued guidance to the state that it cannot extend the managed care organization tax in its current format; and

WHEREAS the state will be forced to make more than $1 billion in program cuts beginning next year if the managed care organization tax is not extended; and

WHEREAS the state's General Fund cannot afford to provide additional rate increases for providers of services for Medi–Cal recipients and consumers with developmental disabilities; and

WHEREAS the state's General Fund cannot afford to permanently maintain a restoration of seven percent of hours in the In–Home Supportive Services program; and

WHEREAS these extraordinary circumstances require the Legislature of the State of California to be convened in a special session.

NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with Section 3(b) of Article IV of the Constitution of the State of California, hereby convene the Legislature of the State of California to assemble in extraordinary session in Sacramento, California, on the 19th day of June, 2015, at a time to be determined, for the following purposes:

To consider and act upon legislation necessary to enact permanent and sustainable funding from a new managed care organization tax and/or alternative fund sources to provide:

1. At least $1.1 billion annually to stabilize the General Fund's costs for Medi–Cal; and,

2. Sufficient funding to continue the 7 percent restoration of In–Home Supportive Services hours beyond 2015–16; and,

3. Sufficient funding to provide additional rate increases for providers of Medi–Cal and developmental disability services.

To consider and act upon legislation necessary to:

1. Establish mechanisms so that that any additional rate increases expand access to services; and,

2. Increase oversight and the effective management of services provided to consumers with developmental disabilities through the regional center system; and,

3. Improve the efficiency and efficacy of the health care system, reduce the cost of providing health care services, and improve the health of Californians.

I FURTHER DIRECT that as soon as hereafter possible, this Proclamation be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Proclamation.

IN WITNESS WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 16th day of June 2015.

EDMUND G. BROWN JR. Governor of California

Analysis Prepared by: Roger Dunstan / HEALTH / (916) 319-2097 FN: 0001591