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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