BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 1462
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1462 (Feuer)
          As Amended  July 14, 2009
          Majority vote
           
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          |ASSEMBLY:  |77-0 |(May 21, 2009)  |SENATE: |36-1 |(September 3,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    HEALTH  

           SUMMARY  :  Requires the California Medical Assistance Commission  
          (CMAC) to consider graduate medical education (GME) programs in  
          negotiating Medi-Cal inpatient contracts with hospitals or in  
          drawing specifications for competitive bidding. Incorporates  
          changes proposed by AB 366 (Ruskin) of 2009 to prevent  
          chaptering out. 

           The Senate amendments  address chaptering conflicts that are  
          created by another bill that amends the same statute.

           EXISTING LAW  :

          1)Requires the Governor to designate a person in his or her  
            office to act as a special negotiator (in practice, CMAC) to  
            negotiate rates, terms, and conditions for contracts with  
            hospitals for inpatient services to be rendered to Medi-Cal  
            Program beneficiaries.

          2)Permits the special negotiator, if he or she deems it  
            expedient, to call for bids, in lieu of negotiations, and  
            requires the special negotiator to consider, when contracting,  
            the total funds appropriated for inpatient hospital services.

          3)Requires the negotiator to take into account specified factors  
            in negotiating contracts or in drawing specifications for  
            competitive bidding.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  








                                                                           
           AB 1462
                                                                  Page  2


           

          Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  
          319-2097 


          FN: 0002186