BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 826
Author: Swanson (D), et al.
Amended: 8/24/12 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Medi-Cal: managed care plan tax: Healthy
Families
Program transition: skilled nursing facility
and managed care
plan charges
SOURCE : Author
DIGEST : This bill extends the imposition of the tax on
the total operating revenue of Medi-Cal managed care plans
until July 1, 2014, and makes other conforming changes, and
authorizes the State Controller to loan funds in the
Children's Health and Human Services Special Fund to the
General Fund, as provided, until July 1, 2013.
Senate Floor Amendments of 8/24/12 delete prior version of
the bill relating to parolees mentally ill services and
replace it with the above language.
ANALYSIS : Existing law provides for the Medi-Cal
program, which is administered by the Department of Health
Care Services (DHCS), under which qualified low-income
individuals receive health care services. The Medi-Cal
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program is, in part, governed and funded by federal
Medicaid Program provisions.
Under existing law, one of the methods by which Medi-Cal
services are provided is through contracts with various
types of managed care plans. Existing law imposes a tax at
a specified rate on the gross premiums of an insurer, as
defined, and, until July 1, 2012, on the total operating
revenue, as specified, of a Medi-Cal managed care plan, as
defined. Existing law exempts from that tax the total
operating revenue of a Medi-Cal managed care plan, if
specified events occur before July, 1, 2012. Existing law
continuously appropriates the revenues derived from the tax
on Medi-Cal managed care plans for specified purposes.
This bill extends the imposition of the tax on the total
operating revenue of Medi-Cal managed care plans until July
1, 2014, and makes other conforming changes. This bill
also authorizes the State Controller to loan funds in the
Children's Health and Human Services Special Fund to the
General Fund, as provided, until July 1, 2013.
Existing law requires, until July 1, 2012, every return
required to be filed with the Insurance Commissioner
pursuant to provisions governing taxes on the total
operating revenue of Medi-Cal managed care plans to be
signed by the insurer or the Medi-Cal managed care plan or
an executive officer of the insurer or the plan and to be
made under oath or contain a written declaration that is
made under penalty of perjury.
This bill applies this signature requirement until July 1,
2013.
Existing law creates the Healthy Families Program,
administered by the Managed Risk Medical Insurance Board
(MRMIB), to arrange for the provision of health, vision,
and dental benefits to eligible children pursuant to a
federal program, the Children's Health Insurance Program.
Under existing law, the Director of DHCS may contract with
any qualified individual, organization, or entity to
provide services to, arrange for, or case manage the care
of Medi-Cal beneficiaries, subject to specified
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requirements. Existing law requires a Medi-Cal applicant
or beneficiary to be informed of the managed care and
fee-for-service options available regarding methods of
receiving Medi-Cal benefits.
Existing law provides for the transition of specified
enrollees of the Healthy Families Program to the Medi-Cal
program, to the extent that those individuals are otherwise
eligible, no sooner than January 1, 2013. Existing law
requires this transition to take place in four phases, as
prescribed.
This bill repeals the provisions requiring the transfer of
Healthy Families Program enrollees into the Medi-Cal
program.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
CTW:mk 8/27/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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