CHA News Article

AB 1805 Passes Out of Assembly Health Committee With Strong Bipartisan Support

On Tuesday, AB 1805 (Skinner, D-Berkeley/Pan, D-Sacramento) passed out of the Assembly Health Committee with every member voting in support of the bill.  AB 1805 would rescind cuts to Medi-Cal providers and halt the “clawback,” or retroactive recoupment of reimbursement, for distinct-part skilled-nursing facilities. Matt Rees, CEO of Mayers Memorial Hospital, testified at the hearing on behalf of CHA. He explained the cuts his hospital would have to make if the administration moves forward with recouping the money his facility owes due to the provider rate reductions contained in the 2011 state budget. Many providers and consumers turned out in support of the bill at the hearing and were well received by the committee.

The next stop for AB 1805 will be the Assembly Appropriations Committee, where it will be analyzed from a fiscal perspective. The state estimates it will see $245 million (General Fund) in ongoing annual savings if the 10 percent reduction continues, and $38 million (General Fund) in savings from the recoupment of retroactive reductions from distinct-part skilled-nursing facilities. The issue is also being discussed in budget subcommittee hearings taking place this month. With the state’s fiscal situation much better this year than it has been in many years, it is hoped that the issue will be resolved through the budget process over the next six to seven weeks. However, many other issues also are competing for the extra revenue.