BILL NUMBER: AB 62 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Monning
DECEMBER 7, 2010
An act to add Article 5.227 (commencing with Section 14168) to
Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, relating to Medi-Cal, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 62, as introduced, Monning. Medi-Cal: hospitals: quality
assurance fee.
Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Care Services and
under which qualified low-income persons receive health care
benefits. The Medi-Cal program is, in part, governed and funded by
federal Medicaid provisions.
Existing law, subject to federal approval, requires the department
to make supplemental payments for certain services, as specified, to
private hospitals, nondesignated public hospitals, and designated
public hospitals, as defined, for subject federal fiscal years.
Existing law, subject to federal approval, also imposes a quality
assurance fee, as specified, on certain general acute care hospitals
through and including December 31, 2010. Existing law creates the
Hospital Quality Assurance Revenue Fund in the State Treasury and
requires that the money collected from the quality assurance fee be
deposited into the fund. Existing law provides that the moneys in the
fund shall, upon appropriation by the Legislature, be available only
for certain purposes, including providing the above-described
supplemental payments to hospitals and health care coverage for
children.
Existing law, effective January 1, 2011, and subject to subsequent
statutory authorization that meets certain conditions, imposes a
quality assurance fee in a manner necessary to obtain federal
Medicaid matching funds that shall be due and payable to the
department by each general acute care hospital at specified rates for
the purpose of making Medi-Cal payments to hospitals.
This bill would, effective July 1, 2011, impose on each general
acute care hospital that is not an exempt facility, as defined, a
quality assurance fee. This bill would require the quality assurance
fee to be computed starting on the effective date of the bill and
continue through and including October 31, 2015. The bill would
require the proceeds from the fee to be used for the same purposes as
the above-described quality assurance fee that is imposed on
hospitals through and including December 31, 2010. The bill would
provide that the method of calculation and collection of the quality
assurance fee is to be determined in an unspecified manner.
This bill would require the director to seek federal approvals or
waivers as may be necessary to implement the above-described
provisions and to obtain federal financial participation to the
maximum extent possible with the proceeds from the quality assurance
fee paid pursuant to those provisions.
This bill would require the fee payments and any related federal
reimbursement to be deposited in the Hospital Quality Assurance
Revenue Fund. The bill would continuously appropriate these moneys in
an unspecified manner.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 5.227 (commencing with Section 14168) is added
to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:
Article 5.227. Quality Assurance Fee Act
14168. (a) (1) "Exempt facility" means any of the following:
(A) A public hospital, which shall include either of the
following:
(i) A hospital, as defined in paragraph (25) of subdivision (a) of
Section 14105.98.
(ii) A tax-exempt nonprofit hospital that is licensed under
subdivision (a) of Section 1250 of the Health and Safety Code and
operating a hospital owned by a local health care district, and is
affiliated with the health care district hospital owner by means of
the district's status as the nonprofit corporation's sole corporate
member.
(B) With the exception of a hospital that is in the Charitable
Research Hospital peer group, as set forth in the 1991 Hospital Peer
Grouping Report published by the department, a hospital that is a
hospital designated as a specialty hospital in the hospital's Office
of Statewide Health Planning and Development Hospital Annual
Disclosure Report for the hospital's fiscal year ending in the 2007
calendar year.
(C) A hospital that satisfies the Medicare criteria to be a
long-term care hospital.
(D) A small and rural hospital as specified in Section 124840 of
the Health and Safety Code designated as that in the hospital's
Office of Statewide Health Planning and Development Hospital Annual
Disclosure Report for the hospital's fiscal year ending in the 2007
calendar year.
(2) "General acute care hospital" means any hospital licensed
pursuant to subdivision (a) of Section 1250 of the Health and Safety
Code.
(b) Effective July 1, 2011, there shall be imposed on each general
acute care hospital that is not an exempt facility a quality
assurance fee.
(c) (1) The quality assurance fee shall be computed starting on
the effective date of this article and continue through and including
October 31, 2015.
(2) The method of calculation and collection of the quality
assurance fee shall be determined pursuant to ____.
(3) The quality assurance fee shall be used solely for the
purposes specified in Article 5.21 (commencing with Section 14167.1)
and Article 5.22 (commencing with Section 14167.31).
(d) The director shall do all of the following:
(1) Seek federal approvals or waivers as may be necessary to
implement this article.
(2) Obtain federal financial participation to the maximum extent
possible with the proceeds from the quality assurance fee paid
pursuant to this article.
(e) (1) The fee payments and any related federal reimbursement
shall be deposited in the Hospital Quality Assurance Revenue Fund.
(2) Notwithstanding Section 13340 of the Government Code, any
moneys deposited in the Hospital Quality Assurance Revenue Fund
pursuant to paragraph (1) shall be continuously appropriated, without
regard to fiscal year, as follows:____.
SEC. 2. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to make the necessary statutory changes to increase
Medi-Cal payments to health care providers and improve access, at the
earliest possible time, it is necessary that this act take effect
immediately.