BILL ANALYSIS Ó
AB 2 X2
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ASSEMBLY THIRD READING
AB 2
X2 (Bonta)
As Introduced July 2, 2015
Majority vote
SUMMARY: States it is the intent of the Legislature to enact
legislation to stabilize funding for the Medi-Cal program and to
provide rate increases for Medi-Cal and developmental services
providers.
FISCAL EFFECT: None
COMMENTS: According to the author, this bill is a vehicle for
specific legislation that responds to the Governor's call for a
special session.
BACKGROUND: On June 19, 2015, the Second Extraordinary Session
of the California State Legislature was convened pursuant to a
proclamation by Governor Brown, which read:
WHEREAS the state's recent expansion of health care
coverage has resulted in more than four million
additional Californians receiving coverage through
Medi- Cal; and
WHEREAS to date, the managed care organization tax
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has provided a stable source of funding to help pay
for the costs of the health care expansion; and
WHEREAS the federal government has issued guidance to
the state that it cannot extend the managed care
organization tax in its current format; and
WHEREAS the state will be forced to make more than $1
billion in program cuts beginning next year if the
managed care organization tax is not extended; and
WHEREAS the state's General Fund cannot afford to
provide additional rate increases for providers of
services for Medi-Cal recipients and consumers with
developmental disabilities; and
WHEREAS the state's General Fund cannot afford to
permanently maintain a restoration of seven percent
of hours in the In-Home Supportive Services program;
and
WHEREAS these extraordinary circumstances require the
Legislature of the State of California to be convened
in a special session.
NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of
the State of California, in accordance with Section
3(b) of Article IV of the Constitution of the State
of California, hereby convene the Legislature of the
State of California to assemble in extraordinary
session in Sacramento, California, on the 19th day of
June, 2015, at a time to be determined, for the
following purposes:
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To consider and act upon legislation necessary to
enact permanent and sustainable funding from a new
managed care organization tax and/or alternative fund
sources to provide:
1) At least $1.1 billion annually to stabilize the
General Fund's costs for Medi-Cal; and,
2) Sufficient funding to continue the 7 percent
restoration of In-Home Supportive Services hours
beyond 2015-16; and,
3) Sufficient funding to provide additional rate
increases for providers of Medi-Cal and developmental
disability services.
To consider and act upon legislation necessary to:
1) Establish mechanisms so that that any additional
rate increases expand access to services; and,
2) Increase oversight and the effective management
of services provided to consumers with developmental
disabilities through the regional center system; and,
3) Improve the efficiency and efficacy of the health
care system, reduce the cost of providing health care
services, and improve the health of Californians.
I FURTHER DIRECT that as soon as hereafter possible,
this Proclamation be filed in the Office of the
Secretary of State and that widespread publicity and
notice be given of this Proclamation.
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IN WITNESS WHEREOF, I have hereunto set my hand and
caused the Great Seal of the State of California to
be affixed this 16th day of June 2015.
EDMUND G. BROWN JR. Governor of California
Analysis Prepared by:
Roger Dunstan / HEALTH / (916) 319-2097 FN:
0001591