BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SBX2 2| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SBX2 2 Author: Hernandez (D) Introduced:7/6/15 Vote: 21 SUBJECT: Medi-Cal: developmental services: provider rate increases SOURCE: Author DIGEST: This bill states it is the intent of the Legislature to enact legislation that would stabilize funding for the Medi-Cal program and provide rate increases for providers of Medi-Cal and developmental services. ANALYSIS: On June 19, 2015, the 2nd 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 has provided a stable source of funding to help pay for the costs of the health care expansion; and SBX2 2 Page 2 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: 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: a. At least $1.1 billion annually to stabilize the General Fund's costs for Medi-Cal; and SBX2 2 Page 3 b. Sufficient funding to continue the 7 percent restoration of In-Home Supportive Services hours beyond 2015-16; and c. Sufficient funding to provide additional rate increases for providers of Medi-Cal and developmental disability services. To consider and act upon legislation necessary to: a. Establish mechanisms so that that any additional rate increases expand access to services; and b. Increase oversight and the effective management of services provided to consumers with developmental disabilities through the regional center system; and c. 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. 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 FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SBX2 2 Page 4 SUPPORT: (Verified7/8/15) None received OPPOSITION: (Verified7/8/15) None received Prepared by:Melanie Moreno / HEALTH / 7/8/15 15:46:34 **** END ****