Friday, 10 May 2013 00:00
Appropriations Suspense File
With the May 3rd deadline for legislative policy committees to act on fiscal bills passed, focus is now on the work of the fiscal committees. This week, the Senate Appropriations Committee placed SB 645 (Nielsen), the California Hospital Association’s sponsored bill, on its Suspense File. This file, which holds bills which could add significant costs to the state, will be considered further by the Committee in late May after the Governor submits his revised 2013-14 proposed budget to the Legislature. Bills that are not passed off the Suspense File are dead for the legislative year. Senate Bill 645, supported by the Alliance, would extend by one year (July 1, 2013 to July 1, 2014) the implementation of the state’s Diagnosis-related Group (DRG) payment methodology. The Department of Health Care Services attributed millions of dollars in costs and lost budget savings of $140 million (federal and state funds) to the bill if DRG implementation is delayed. It is anticipated that the Committee will act on the Suspense file not later than May 24.
AB 975 (Wieckowski and Bonta), sponsored by the California Nurses Association, was placed on the Assembly Appropriations Committee Suspense File. The measure would rewrite California law governing charity care and community benefits provided by non-profit hospitals. The Alliance, and a number of its members, is participating in a coalition of hospital interests opposing the bill. Since the bill specifies an expanded regulatory role for the Office of Statewide Health Planning and Development, the Department estimated start up costs of $2.2 million for each of the first two years and ongoing costs of $900,000 annually. Like the Senate, the Assembly Appropriations Committee will act on its Suspense File not later than May 24.
The three scope of practice measures authored by Senator Ed Hernandez, O.D. have been approved by the Senate Business, Professions and Economic Development Committee and now move to the Senate Appropriations Committee. While the Alliance has not taken positions on SB 491 (nurse practitioners), SB 492 (optometrists), and SB 493 (pharmacists) it is closely monitoring their progress. The measures are opposed by physicians’ organizations like the California Medical Association.
Friday, 10 May 2013 00:00
Insurance Market Reforms Signed into Law
On Thursday, Governor Jerry Brown signed into law SBx1 2 (Hernandez) and ABx1 2 (Pan) to reform California’s health insurance market as required by the federal Patient Protection and Affordable Care Act (ACA). Because these are special session bills, they go into effect 90 days from being signed into law (August 7, 2013). This legislation aligns state law with federal law and gives California regulators authority to enforce ACA market reforms to:
- - Prohibit insurers and health plans from excluding consumers based on pre-existing medical conditions
- Require insurers and health plans to accept all who apply for insurance and renew the insurance in their service area
- Prohibit premium rates to vary based on health status.
Friday, 10 May 2013 00:00
Covered California Approves Model Contract
This week the Covered California Board held a special board meeting for the main purpose of taking action on the proposed model contract for the Qualified Health Plans. The Board approved the 2014 Qualified Health Plan model contract between Covered California and those plans that will offer coverage through the state’s health benefit exchange – see attached PowerPoint summary. The Board also received an update on the Assisters Program, including draft state regulations. A comprehensive proposal will be presented at the next board meeting on May 23 in Sacramento
