BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 119


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          (Without Reference to File)





          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          119 (Committee on Budget)


          As Amended  June 11, 2015


          2/3 vote. Budget Bill Appropriation Takes Effect Immediately


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          |ASSEMBLY:  |      |(March 23,     |SENATE: |      |(June 15, 2015)  |
          |           |      |2015)          |        |      |                 |
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                 (vote not relevant)                (vote not available)




          Original Committee Reference:  BUDGET


          SUMMARY:  This is the Skilled Nursing Facility Quality Assurance  
          Fee Reauthorization Trailer Bill for 2015-16.  It contains  
          necessary changes related to the Budget Act of 2015.  This bill  
          makes various statutory changes to implement the 2015-16 Budget.  
           Specifically, this bill:


          1)Extends the sunset date for the skilled nursing facility  
            rate-setting methodology established under AB 1629 (Frommer),  








                                                                     AB 119


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            Chapter 875, Statutes of 2004, as well as the Quality  
            Assurance Fee and Quality/Accountability Supplemental Payment  
            (QASP) programs, from July 31, 2015, to July 31, 2020. 
          2)Specifies that beginning 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 California Department of Health Care Services  
            (DHCS) Administrative Procedure Act exemption through July 31,  
            2020, and the California Department of Public Health Public  
            Contract Code exemption through December 31, 2020. 


          5)Requires DHCS to incorporate direct care staff retention as a  
            performance measure in the methodology for the quality  
            assurance supplemental payments.


          6)Requires DHCS to report to the Legislature, by May 1, 2016, on  
            the quality and accountability supplemental payments,  
            including, but not limited to, its assessment of whether the  
            payments are adequate to incentivize quality care and to  
            sustain the program.   


          COMMENT:  This bill is a budget trailer bill within the overall  
          2015-16 budget package to implement actions taken affecting  
          DHCS.


          Analysis Prepared by:                                             
                          Andrea Margolis / BUDGET / (916) 319-2099  FN:  
          0000937











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