BILL ANALYSIS
AB 1462
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Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 1462 (Feuer) - As Amended: April 14, 2009
Policy Committee: Health Vote:18-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Medical Assistance Commission
(CMAC) to include reimbursement for the costs of graduate
medical education (GME), along with a number of existing
factors, when negotiating contracts for in-patient care or
developing specifications for competitive bidding.
FISCAL EFFECT
No direct fiscal impact to CMAC. Current law authorizes the
consideration of more than a dozen factors for CMAC to consider
during contracting. CMAC takes GME costs into consideration
under current law.
COMMENTS
1)Rationale . This bill is sponsored by Cedars-Sinai Medical
Center in Los Angeles to require CMAC to consider GME costs
when negotiating in-patient contracts on behalf of Medi-Cal
patients at contracting hospitals. According to the author and
sponsor, though GME consideration is authorized under current
law, these costs are not adequately reimbursed for hospitals
that are not university hospitals or disproportionate share
hospitals (DSH).
2)CMAC negotiates contracts with hospitals on behalf of the
Department of Health Care Services for inpatient services
under the Medi-Cal program. CMAC selectively contracts on a
competitive basis with hospitals for inpatient services
provided to beneficiaries in the fee-for-service Medi-Cal
program via the Selective Provider Contracting Program (SPCP).
CMAC contracts with about 200 general acute care hospitals.
AB 1462
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3)Related Legislation . AB 249 (Papan), in 1999, authorized CMAC
to consider costs of medical education programs for
physicians, nurses, or allied health professionals. AB 249 was
vetoed as CMAC is already authorized to consider these costs.
Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081