Hospital Fee Program

The hospital fee program was signed into law by the governor and becomes effective on January 1, 2010. This primary legislation (AB 1383, Jones – D /Alquist – D), was stripped of the necessary appropriations for the state to cover it's implementation costs and to make the new payments to hospitals; however, a secondary legislative solution – AB 188 (Jones – D/Alquist – D/Steinberg – D), passed the Senate and is expected to be heard in the Assembly soon before making its way to the governor for his signature. AB 188, an urgency bill, contains the two necessary appropriations that were removed from AB 1383. The urgency clause will make the bill immediately effective once it is signed by the governor. The Hospital fee program legislation expires on December 31, 2010.

Governor Signs Hospital Fee Appropriations Bill

The Governor signed AB 188 (Jones, D-Sacramento/Alquist, D-Santa Clara/Steinberg, D-Sacramento) on Nov. 5. Co-sponsored by CHA, the bill provides the necessary appropriations for the state to seek federal approval to implement AB 1383 (Jones, D-Sacramento/Alquist, D-Santa Clara). AB 1383 assesses a fee on hospitals for the purpose of securing matching federal funds to make supplemental Medi-Cal payments to hospitals and to provide the state with $320 million in annual funding for children's health care coverage.