BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 119|
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THIRD READING
Bill No: AB 119
Author: Committee on Budget
Amended: 6/11/15 in Senate
Vote: 27
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 14-1, 6/15/15
AYES: Leno, Nielsen, Allen, Beall, Block, Hancock, Mitchell,
Monning, Moorlach, Pan, Pavley, Roth, Stone, Wolk
NOES: Nguyen
NO VOTE RECORDED: Anderson
ASSEMBLY FLOOR: Not relevant
SUBJECT: Public health: Medi-Cal: nursing facilities
SOURCE: Author
DIGEST: This bill adjusts the nursing home quality assurance
fee and rate.
ANALYSIS: This bill contains necessary statutory changes
related to the Department of Health Care Services (DHCS) in
order to implement the Budget Act of 2015. Specifically, this
bill:
1)Extends the sunset date for the skilled nursing facility
rate-setting methodology established under AB 1629 (Frommer,
Chapter 875, Statutes of 2004), as well as the Quality
Assurance Fee (QAF) and Quality/Accountability Supplemental
Payment (QASP) programs, from July 31, 2015, to July 31, 2020.
AB 119
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2)Specifies that beginning in 2015-16, the annual increase in
the weighted average Medi-Cal reimbursement rate for skilled
nursing facilities would be 3.62%. (The rate increase for
2013-14 and 2014-15 was 3%.)
3)Sets QASP payments at the same level as existed for 2014-15
(approximately $90 million per year).
4)Extends the DHCS Administrative Procedure Act exemption
through July 31, 2020, and the California Department of Public
Health (CDPH) Public Contract Code exemption through December
31, 2020.
5)Incorporates, beginning with the 2015-16 fiscal year, direct
care staff retention as a performance measure for QASP to be
developed in consultation with representatives from the
long-term care industry, organized labor, and consumers.
6)Requires DHCS, in coordination with CDPH, to report to the
Assembly and Senate budget subcommittees by May 1, 2016,
regarding the quality and accountability payments including
its assessment of the adequacy of these payments to
incentivize quality and sustainability of the program.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Senate Budget and Fiscal Review Committee, the
QAF is estimated to generate $539.7 million in fee revenue from
August 1, 2015, through July 31, 2016 (accrual). This fee
revenue offsets General Fund expenditures used to reimburse
skilled nursing facilities in Medi-Cal.
SUPPORT: (Verified 6/12/15)
None received
OPPOSITION: (Verified 6/12/15)
None received
AB 119
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Prepared by:Michelle Baass / B. & F.R. / (916) 651-4103
6/15/15 13:07:25
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