BILL ANALYSIS
AB 1985
Page 1
ASSEMBLY THIRD READING
AB 1985 (Galgiani)
As Introduced February 17, 2010
Majority vote
HEALTH 15-2 APPROPRIATIONS 12-5
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|Ayes:|Monning, Ammiano, Carter, |Ayes:|Fuentes, Ammiano, |
| |Conway, Brownley, De | |Bradford, |
| |Leon, Adams, Eng, | |Charles Calderon, Coto, |
| |Hayashi, Hernandez, | |Davis, Monning, Ruskin, |
| |Jones, Bonnie Lowenthal, | |Skinner, Solorio, |
| |Nava, | |Torlakson, Torrico |
| |V. Manuel Perez, Salas | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gaines, Audra Strickland |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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SUMMARY : Permits the California Department of Corrections and
Rehabilitation (CDCR) to use Medi-Cal's methodology for
determining maximum allowable reimbursement rates for durable
medical equipment (DME), if approved by the federal receiver or
when CDCR is no longer under the authority of the federal
receiver. Exempts the provisions of this bill from the
Administrative Procedures Act.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)This bill is permissive. If CDCR chose to implement the DME
approach proposed in this bill, the fiscal impact is a
one-time General Fund (GF) cost of $250,000 to CDCR to
research and establish a list of DME and associated fee
schedules for 33 correctional facilities with distinct
procurement and expenditure policies.
2)Annual GF costs of $1.5 million to $2 million to CDCR to
provide staff to oversee the implementation and procurement of
DME pursuant to the provisions of this bill.
3)Unknown GF savings may accrue to the extent a centralized
AB 1985
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procurement and reimbursement system brings down CDCR costs
for DME.
COMMENTS : According to the author, CDCR's medical care system
is currently in a state of crisis because of decades of neglect,
underinvestment, and increasing over-crowding. This bill
attempts to streamline the costs of CDCR's medical care system
by providing the same DME cost savings in prison healthcare as
was achieved for the Medi-Cal program by mirroring the language
that was introduced in AB 747 (Matthews) of 2003 and later
adopted in AB 1762 (Committee on Budget), Chapter 230, Statutes
of 2003.
According to CDCR, prisons purchase DME in the same manner as
other non-medical equipment. For purchase contracts of less
than $100,000, individual CDCR facilities must obtain at least
two or three bids and choose the lowest qualified bidder (with
certain exceptions designed to favor purchases from small
businesses and disabled veterans business enterprises).
Purchases of $100,000 or more are processed through DGS to
determine if DGS has a contract in place to purchase the
specific item or items. DGS secures contracts by using the
competitive invitation for bid process. This process includes
advertising DGS' requirements through the state contracts
register, receiving bids from at least three vendors, and
accepting the lowest competitive bid that meets DGS'
requirements. The Receiver may, but is not required to, follow
existing state law in the acquisition of DME.
Analysis Prepared by : Martin Radosevich / HEALTH / (916)
319-2097
FN: 0004703