BILL NUMBER: AB 1653	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        JANUARY 14, 2010

   An act to add Article 5.227 (commencing with Section 14168) to
Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, relating to Medi-Cal, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1653, as introduced, Jones. Medi-Cal: hospitals: quality
assurance fee.
   Existing law establishes the Medi-Cal program, administered by the
State Department of Health Care Services, under which basic health
care services are provided to qualified low-income persons. The
Medi-Cal program is, in part, governed and funded by federal Medicaid
provisions.
   Existing law, subject to federal approval, requires the department
to make supplemental payments for certain services, as specified, to
private hospitals, nondesignated public hospitals, and designated
public hospitals, as defined, for subject federal fiscal years.
   Existing law, subject to federal approval, also imposes, as a
condition of participation in state-funded health insurance programs
other than the Medi-Cal program, a quality assurance fee, as
specified, on certain general acute care hospitals through and
including December 31, 2010. Existing law creates the Hospital
Quality Assurance Revenue Fund in the State Treasury and requires
that the money collected from the quality assurance fee be deposited
into the fund. Existing law provides that the moneys in the fund
shall, upon appropriation by the Legislature, be available only for
certain purposes, including providing the above-described
supplemental payments to hospitals and health care coverage for
children.
   Existing law, effective January 1, 2011, and subject to the
authority of a subsequent statute enacted to take effect on or after
January 1, 2011, that meets certain conditions, imposes a quality
assurance fee in a manner necessary to obtain federal Medicaid
matching funds that shall be due and payable to the department by
each general acute care hospital at specified rates for the purpose
of making Medi-Cal payments to hospitals
   This bill would, effective January 1, 2011, impose on each general
acute care hospital that is not an exempt facility, as defined, a
quality assurance fee, as a condition of participation in
state-funded health insurance programs, other than the Medi-Cal
program. This bill would require the quality assurance fee to be
computed starting on the effective date of the bill and continue
through and including June 30, 2011. The bill would require the
proceeds from the fee to be used for the same purposes as the
above-described quality assurance fee that is imposed on hospitals
through and including December 31, 2010. The bill would provide that
the method of calculation and collection of the quality assurance fee
is to be determined in an unspecified manner.
   This bill would require the director to seek federal approvals or
waivers as may be necessary to implement the above-described
provisions and to obtain federal financial participation to the
maximum extent possible with the proceeds from the quality assurance
fee paid pursuant to those provisions.
   This bill would require the fee payments and any related federal
reimbursement to be deposited in the Hospital Quality Assurance
Revenue Fund. The bill would continuously appropriate these moneys in
an unspecified manner.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 5.227 (commencing with Section 14168) is added
to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 5.227.  Quality Assurance Fee Act


   14168.  (a) (1) "Exempt facility" means any of the following:
   (A) A public hospital as defined in paragraph (25) of subdivision
(a) of Section 14105.98.
   (B) With the exception of a hospital that is in the Charitable
Research Hospital peer group, as set forth in the 1991 Hospital Peer
Grouping Report published by the department, a hospital that is
designated as a specialty hospital in the hospital's Office of
Statewide Health Planning and Development Hospital Annual Disclosure
Report for the hospital's fiscal year ending in the 2007 calendar
year.
   (C) A hospital that satisfies the Medicare criteria to be a
long-term care hospital.
   (D) A small and rural hospital as specified in Section 124840 of
the Health and Safety Code, designated as that in the hospital's
Office of Statewide Health Planning and Development Hospital Annual
Disclosure Report for the hospital's fiscal year ending in the 2007
calendar year.
   (2) "General acute care hospital" shall mean any hospital licensed
pursuant to subdivision (a) of Section 1250 of the Health and Safety
Code.
   (b) Effective January 1, 2011, there shall be imposed on each
general acute care hospital that is not an exempt facility a quality
assurance fee, as a condition of participation in a state-funded
health insurance program, other than the Medi-Cal program.
   (c) (1) The quality assurance fee shall be computed starting on
the effective date of this article and continue through and including
June 30, 2011.
   (2) The method of calculation and collection of the quality
assurance fee shall be determined pursuant to ____.
   (3) The quality assurance fee shall be used solely for the
purposes specified in Article 5.21 (commencing with Section 14167.1)
and Article 5.22 (commencing with Section 14167.31).
   (d) The director shall do all of the following:
   (1) Seek federal approvals or waivers as may be necessary to
implement this article.
   (2) Obtain federal financial participation to the maximum extent
possible with the proceeds from the quality assurance fee paid
pursuant to this article.
   (e) (1) The fee payments and any related federal reimbursement
shall be deposited in the Hospital Quality Assurance Revenue Fund.
   (2) Notwithstanding Section 13340 of the Government Code, any
moneys deposited in the Hospital Quality Assurance Revenue Fund
pursuant to paragraph (1) shall be continuously appropriated, without
regard to fiscal year, as follows:____.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to make the necessary statutory changes to increase
Medi-Cal payments to hospitals and improve access, at the earliest
possible time, it is necessary that this act take effect immediately.