BILL ANALYSIS Ó AB 119 Page 1 (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 -------------------------------------------------------------------- |ASSEMBLY: | |(March 23, |SENATE: | |(June 15, 2015) | | | |2015) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- (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 Page 2 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 AB 119 Page 3