BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1300 (Hernandez) - Medi-Cal: emergency medical transport
providers: quality assurance fee
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|Version: April 26, 2016 |Policy Vote: HEALTH 5 - 0 |
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|Urgency: Yes |Mandate: Yes |
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|Hearing Date: May 27, 2016 |Consultant: Brendan McCarthy |
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Bill Summary:
: SB 1300 would impose a quality assurance fee on emergency
medical transportation. The bill would use the resulting revenue
and federal matching funds to increase reimbursement rates paid
in the Medi-Cal program for emergency medical transportation.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal
Impact:
Ongoing administrative costs, likely in the hundreds of
thousands to low millions per year for the Department of
Health Care Services to develop regulations, gain federal
approval, make any necessary system changes, oversee
collection of the quality assurance fee, and make supplemental
payments (special fund, General Fund, and federal funds). The
SB 1300 (Hernandez) Page 1 of
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bill provides that $350,000 per year shall be available to the
Department for administrative costs (the state would be able
to draw down additional federal funding to help cover the
administrative costs). To the extent that actual
administrative costs are higher, those costs would be paid
from the General Fund and federal funds.
Ongoing General Fund benefit of about $3 million per year. The
bill provides that 10% of revenue collected (after setting
aside administrative funding) shall be available to the state
for support of the Medi-Cal program. In doing so, the bill
would reduce the need for General Fund support of the Medi-Cal
program by an equal amount.
Additional payments of about $77 million per year for
emergency medical transportation in the Medi-Cal program
(special fund and federal funds). The quality assurance fee is
projected to generate about $30 million per year in revenues
(after accounting for administration and state benefits). With
federal matching funds, there would be about $77 million per
year for increased reimbursements to providers.
Committee
Amendments: Make the bill inoperative if a court finds that the
bill increases the state's funding obligations for education
under the Constitution and increase the state share of the
revenue received to 10%.
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