BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 896
                                                                     Page  1


        CONCURRENCE IN SENATE AMENDMENTS
        AB 896 (Galgiani)
        As Amended September 10, 2009
        Majority vote
         
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        |ASSEMBLY:  |78-0 |(June 1, 2009)  |SENATE: |     |(September 12, |
        |           |     |                |        |     |2009)          |
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                                                       (vote not available)
        Original Committee Reference:    HEALTH  

         SUMMARY  : Requires hospital inpatient rates for the California  
        Children's Services Program (CCS Program), the Genetically  
        Handicapped Persons Program (GHPP), the Breast and Cervical Cancer  
        Early Detection Program (BCCEDP), the State-Only Family Planning  
        Program (State-Only FPP), and the Family Planning, Access, Care, and  
        Treatment (Family PACT) to be paid at 90% of the Medi-Cal hospital  
        interim rate until January 1, 2011.

         The Senate amendments  : Delay the repeal, until January 1, 2011, a  
        requirement that hospital inpatient services payment rates for the  
        CCS Program, GHPP, BCCEDP, State-Only FPP and Family PACT Waiver  
        Program be identical to the rates of payment for the same service  
        performed by the same provider type in the Medi-Cal program, and  
        instead require payment at 90% of the Medi-Cal hospital interim  
        rate.  

         EXISTING LAW  requires:  

        1)Provider payment rates for services rendered in the CCS Program,  
          the GHPP, the BCCEDP, State-Only FPP, and the Family PACT to be  
          identical to the rates of payment for the same service performed  
          by the same provider type pursuant to the Medi-Cal program, except  
          that hospital inpatient rates of payment are required to be 90% of  
          the Medi-Cal hospital interim rates of payment, as developed by  
          the Department of Health Care Services (DHCS).  The requirement  
          that inpatient rates of payment be 90% of the Medi-Cal hospital  
          interim rate sunsets January 1, 2010.

        2)Provider payment rates for services rendered in CCS Program, GHPP,  
          BCCEDP, State-Only FPP, and Family PACT to be identical to the  
          rates of payment for the same service performed by the same  
          provider type pursuant to the Medi-Cal program.  This provision  
          takes effect January 1, 2010.







                                                                     AB 896
                                                                     Page  2


        3)Authorizes services provided under the programs in 1) and 2) above  
          to be reimbursed at rates greater than the Medi-Cal rate that  
          would otherwise be applicable if those rates are increased by the  
          DHCS director in regulations.

         AS PASSED BY THE ASSEMBLY  , this bill repealed a requirement due to  
        take effect January 1, 2010, that hospital inpatient payment rates  
        for the CCS Program, GHPP, BCCEDP, State-Only FPP and Family PACT  
        Waiver Program be identical to payment rates for the same service  
        performed by the same provider type under the Medi-Cal program.

         FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
        committee.

         COMMENTS  :  This bill efectively only applies to inpatient  
        reimbursement in the CCS Program and GHPP for non-Medi-Cal  
        individuals enrolled in those programs because the other programs  
        (BCCEDP, State-Only FFP, Family PACT) do not reimburse for inpatient  
        services.

         Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916) 319-2097  
        FN: 0003218