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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 26, 2016 |Policy Vote: HEALTH 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 27, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- 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 ? 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%. -- END --