BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 188|
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                                 THIRD READING


          Bill No:  AB 188
          Author:   Jones (D)
          Amended:  10/14/09 in Senate
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT 


           SUBJECT  :    Medi-Cal:  quality assurance fee revenue

           SOURCE  :     Author


           DIGEST  :     Senate Floor Amendments  of 10/14/09 delete the  
          prior version of the bill relating to state fees.

          This bill now appropriates funds to the Department of  
          Health Care Services (DHCS) for the purposes of  
          administering the programs established in AB 1383 (Jones).   
          These programs include a hospital provider fee, increased  
          Medi-Cal reimbursements for hospitals, direct grants for  
          public hospitals and children's health coverage.  The  
          appropriations contained in these amendments include both  
          state and federal funds.  

           ANALYSIS  :    According to the governor's signing message  
          for AB 1383, the bill cannot be implemented without  
          appropriations to DHCS for the administrative costs and so  
          that DHCS can make the supplemental payments, the direct  
          grants to public hospitals and provide funds for children's  
          coverage.  The bill also provides an urgency clause so DHCS  
          can begin the administrative work to implement the provider  
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                                                                AB 188
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          fee, including entering into discussions to gain federal  
          approval of the program. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          This bill appropriates $1,000,000 from the Private Hospital  
          Supplemental Fund and $1,000,000 from the Federal Trust  
          Fund to DHCS to pay the DHCS's staffing and administrative  
          costs associated with the provisions of AB 1383, including  
          costs of workload associated with seeking the necessary  
          federal approvals to implement those provisions.  The  
          appropriation also includes $13,500,000,000 from the  
          Hospital Quality Assurance Revenue Fund to DHCS for the  
          purposes prescribed by AB 1383 to be available for  
          expenditure until January 1, 2013.  If DHCS obtains federal  
          approval, the bill requires DHCS to use the money in the  
          Hospital Quality Assurance Revenue Fund to reimburse  
          $1,000,000 to the Private Hospital Supplemental Fund.  If  
          DHCS does not obtain federal approval, the bill requires  
          any unexpended moneys from the $1,000,000 appropriated to  
          DHCS from the Private Hospital Supplemental Fund pursuant  
          to the bill, to revert to the Private Hospital Supplemental  
          Fund.


          DLW:nl  10/14/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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