BILL NUMBER: SB 347	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 21, 2011

INTRODUCED BY   Senator Rubio

                        FEBRUARY 15, 2011

   An act  to add Section 14093.11 to the Welfare and
Institutions Code,  relating to postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 347, as amended, Rubio. Postsecondary education: graduate
medical  instruction.   education payments:
Medi-Cal. 
   Existing law establishes the University of California which is
administered by the Regents of the University of California. The
University of California is the only public postsecondary segment
authorized to provide graduate instruction in medicine. 
   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 authorizes the department,
to the extent permitted by federal law, to administer the Medi-Cal
program, in part, through various types of managed care plans. 

   This bill would require the department, to the extent permitted by
federal law, to include in its capitation rates paid to managed
health care plans, as defined, an amount sufficient for the plans to
make defined graduate medical education payments to providers
contracting with the managed health care plans. This bill would
require the department to seek all necessary federal approvals to
implement these provisions.  
   This bill would state the intent of the Legislature to enact
legislation to provide more adequately funding for graduate
instruction in medicine. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 14093.11 is added to the 
 Welfare and Institutions Code   , to read:  
   14093.11.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Graduate medical education payments" or "GME payments" means
Medi-Cal payments made to providers to help cover the costs of
training residents in an approved residency program. For the purposes
of this section, GME payments include both direct and indirect
graduate medical education costs.
   (2) (A) "Managed health care plan" means a health care delivery
system that manages the provision of health care and receives prepaid
capitated payments from the state in return for providing services
to Medi-Cal beneficiaries. Managed health care plans include county
organized health systems and entities contracting with the department
to provide services pursuant to two-plan models and geographic
managed care. Entities providing these services contract with the
department pursuant to any of the following:
   (i) Article 2.7 (commencing with Section 14087.3).
   (ii) Article 2.8 (commencing with Section 14087.5).
   (iii) Article 2.81 (commencing with Section 14087.96).
   (iv) Article 2.91 (commencing with Section 14089).
   (B) "Managed health care plan" also includes any of the following:

   (i) Mental health plans contracting to provide mental health care
for Medi-Cal beneficiaries pursuant to Part 2.5 (commencing with
Section 5775) of Division 5.
   (ii) Primary care case management plans operating pursuant to
Article 2.9 (commencing with Section 14088).
   (iii) Long-Term Care Demonstration Projects for All-Inclusive Care
for the Elderly operating pursuant to Chapter 8.75 (commencing with
Section 14590).
   (b) To the extent permitted by federal law, the department shall
include in its capitation rates paid to managed health care plans an
amount sufficient for the plans to make GME payments to providers
contracting with the managed health care plans.
   (c) The department shall seek all necessary federal approvals to
implement this section.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to provide more adequately funding for graduate
instruction in medicine.