BILL ANALYSIS Ó
SB 2 X2
Page 1
SENATE THIRD READING
SB 2
X2 (Hernandez)
As Amended September 4, 2015
Majority vote
SENATE VOTE: 25-13
SUMMARY: 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.
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 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
SB 2 X2
Page 2
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
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:
SB 2 X2
Page 3
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.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the
SB 2 X2
Page 4
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:
Patty Rodgers / HEALTH / (916) 319-2097 FN:
0002203