BILL ANALYSIS                                                                                                                                                                                                    �



                                                                     SB 73
                                                                     Page  1


        SENATE THIRD READING
        SB 73 (Budget and Fiscal Review Committee)
        As Amended  June 28, 2011
        Majority vote.  Budget Bill Appropriation Takes Effect Immediately 

         SENATE VOTE  :Vote not relevant  
         
         SUMMARY  :  Provides the necessary statutory changes in the area of 
        health and human services in order to make mid-year revisions to the 
        Budget Act of 2011.  Specifically, if Section 3.94 (b) of the 2011 
        Budget Act is operative,  this bill  would do the following:

        1)Implements payment reductions as specified in the Medi-Cal Program 
          pertaining to Physician soft caps, provider reimbursement, and 
          Medi-Cal enrollee copayments for services and contracts provided 
          under the Program of All-Inclusive Care for the Elderly (PACE), 
          the Senior Care Action Network, and the AIDS Health Care 
          Foundation.  These contracts and services are presently exempted 
          from these reductions.  If Section 3.94 (b) of the 2011 Budget Act 
          is implemented, it is assumed that a total reduction of $15 
          million General Fund (GF) would be achieved from this action.

        2)Directs that if Section 3.94 (b) of the 2011 Budget Act is 
          operative, the Department of Developmental Services may utilize 
          input from the stakeholder workgroups as specified to develop GF 
          savings proposals as necessary.  It specifies the Legislature's 
          intent for GF savings to be from within the overall developmental 
          services system, including savings or reductions from state 
          administrative support, operation of the developmental centers, 
          and operation of the regional centers.  It states that a variety 
          of strategies may be used for purpose of identifying savings.  If 
          Section 3.94 (b) is implemented, it is assumed that up to $100 
          million GF would be achieved. 
         
         3)Directs that if Section 3.94 (b) of the 2011 Budget Act is 
          operative, the Department of Social Services shall implement an 
          across-the-board reduction in In-Home Supportive Services (IHSS) 
          of 20%, beginning January 1, 2012, with specified notice 
          requirements and exceptions.  If Section 3.94 (b) is implemented, 
          it is assumed that a total reduction of $100 million GF would be 
          achieved in the 2011-12 budget year as a result.
        
        4)Appropriates $1,000 to the Department of Health Care Services for 
          state administration.








                                                                     SB 73
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        5)Adds an appropriation allowing this bill to take effect 
          immediately upon enactment.


         Analysis Prepared by  :  Daisy Gonzales, Nicole Vazquez, and Andrea 
        Margolis / BUDGET / (916) 319-2099
        
        
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