BILL NUMBER: SB 732	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 31, 2009

INTRODUCED BY   Senator Alquist

                        FEBRUARY 27, 2009

    An act relating to public health.   An act
to add Section 14126.024 to the Welfare and Institutions Code,
relating to Medi-Cal. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 732, as amended, Alquist.  Medi-Cal reimbursement:
  Medi-Cal: long-term care reimbursement: cost reporting
methodology. 
   Existing law provides for the Medi-Cal program, administered by
the State Department of Health Care Services, under which health care
services, including  intermediate care  
nursing  facility services  for persons with
developmental disabilities  , are provided to qualified
low-income persons. Existing law prescribes procedures for Medi-Cal
reimbursement at these facilities. 
   Existing law requires that, as a condition of Medi-Cal program
participation, and subject to federal approval, there be imposed a
quality assurance fee on designated intermediate care facilities,
with the moneys collected from these fees to be used for specified
purposes under the Medi-Cal program to support quality improvement of
intermediate care facilities, as prescribed.  
   This bill would declare the intent of the Legislature to enact
legislation relating to those provisions.  
   The Medi-Cal Long-Term Care Reimbursement Act requires the
department to implement a facility-specific ratesetting system,
subject to federal approval and the availability of federal funds,
that uses a cost-based reimbursement rate methodology that reflects
the costs and staffing levels associated with quality of care for
residents in skilled nursing facilities, except as specified. Under
existing law, the methodology is required to reflect the sum of the
projected cost of specified cost categories and passthrough costs.
Under existing law, the rate methodology shall cease to be
implemented on and after July 31, 2011.  
   This bill would require the department, in consultation with the
Office of Statewide Health Planning and Development, by July 1, 2010,
to establish a cost reporting methodology that allows the department
to adjust rates in a manner that is expedient and achieves the
intent of the Medi-Cal Long-Term Care Reimbursement Act. This bill
would require the cost reporting methodology to itemize costs,
including passthrough costs, within each of the specified cost
categories. This bill would authorize the department, in establishing
the cost reporting methodology, to update and modify existing cost
reporting mechanisms, as specified. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1   4126.024 is added
to the   Welfare and Institutions Code   , to read:
 
   14126.024.  (a) The department, in consultation with the Office of
Statewide Health Planning and Development, shall, by July 1, 2010,
establish a cost reporting methodology that allows the department to
adjust rates in a manner that is expedient and achieves the intent of
this article.
   (b) The cost reporting methodology shall itemize costs, including
passthrough costs, within each cost category specified in Section
14126.023. The department shall consult with representatives of
skilled nursing facilities, labor, and consumers when it determines
what costs shall be itemized.
   (c) The department shall continue to collect the cost data
reported prior to July 1, 2010, in the new cost reporting
methodology.
   (d) In establishing the cost reporting methodology, the department
may update and modify existing cost reporting mechanisms, including
the integrated long-term care disclosure, the Medi-Cal cost report
required by Section 128730 of the Health and Safety Code, and any
facility financial disclosure reports or supplemental information
provided to the department for the purposes of rate adjustment. 

  SECTION 1.    It is the intent of the Legislature
to enact legislation relating to the provisions of the Medi-Cal
Long-Term Care Reimbursement Act (Article 3.8 (commencing with
Section 14126) of Chapter 7 of Part 3 of Division 9 of the Welfare
and Institutions Code) and the Skilled Nursing Facility Quality
Assurance Fee (Article 7.5 (commencing with Section 1324) of Chapter
2 of Division 2 of the Health and Safety Code).