BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1054
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1054 (Chesbro) - As Amended:  April 11, 2013 

          Policy Committee:                              HealthVote:18-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill revises the reimbursement rate by counties to  
          institutions for mental disease (IMDs) licensed as skilled  
          nursing facilities (SNFs) by providing for a 3.5% annual  
          increase rather than a 4.7% annual increase, effective July 1,  
          2014.

           FISCAL EFFECT  

          Negligible costs, if any, to the Department of Health Care  
          Services (DHCS).

           COMMENTS  

           Rationale  . The County Mental Health Directors Association  
          (CMHDA), this bill's sponsor, asserts the automatic 4.7%  
          increase in current law is unsustainable for counties. Counties  
          pay 100% of the cost because of a federal IMD exclusion.  As  
          introduced, this bill eliminated the automatic increase  
          entirely, leaving the rate to negotiations between counties and  
          institutions.  Amendments in the Assembly Health Committee set  
          the annual rate increase at 3.5%.

           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081