This week, Assembly Member Nancy Skinner (D-Berkeley) and Assembly Member Richard Pan (D-Sacramento) announced the introduction of two bills, Assembly Bill 1805 (Skinner and Pan) and Assembly Bill 1759 (Pan), which seeks to stabilize the Medi-Cal reimbursement rates. The Assembly Members were joined at a press conference by members of a coalition formed to fight Medi-Cal reimbursement rate cuts, which included the California Medical Association (CMA), California Hospital Association (CHA), and RCRC.
Assembly Bill 97, a 2011-12 state Budget Trailer Bill, was passed by the Legislature and approved by Governor Brown in 2011. The measure cut rates to a variety of Medi-Cal providers, including Distinct Part/Skilled Nursing Facilities (DP/SNFs), pharmacies, and other fee-for-service Medi-Cal activities by 10 percent off of the 2008 reimbursement rates. While certain providers were exempted from the “going forward” rate cuts at the end of last year, the Governor’s 2014-15 Budget proposal would prevent other health care providers from having to repay the 10 percent reimbursement rate cut retroactive to 2011. Those providers exempted from the ongoing rate cuts will still face this clawback and while the others will still face the future rate cuts if additional action is not taken.
AB 1759 (Pan) would make permanent the temporary match of Medi-Cal primary care provider rates to those of Medicare primary care providers. AB 1805 (Skinner and Pan) would repeal the provider rate reductions as instituted by AB 97. The fact that Assembly Member Skinner, the current Assembly Budget Chair, is willing to author language that deals directly with a Budget issue, sends a strong message that leadership is making resolution of this issue a priority for the coming year.
Payment reductions of this scale threaten the accessibility of services to individuals who reside in rural and medically underserved areas. The DP/SNF rate cuts, in particular, disproportionately impact rural county hospitals that are often dependent upon their DP/SNF population to support baseline funding for the whole hospital, ultimately leading to closure of the facility altogether, further exacerbating the existing access issue in rural areas.
AB 1805 (Skinner and Pan) can be accessed here. AB 1758 (Pan) can be accessed here.
For additional information, please contact RCRC Legislative Advocate Cyndi Hillery at 916.447.4806 or chillery@rcrcnet.org.