CHA News Article

AB 900 Amended: Renewed Focus on DP/SNFs

As previously reported, CHA-sponsored AB 900 (Alejo, D-Salinas) passed out of the Assembly Appropriations Committee on May 24. The bill, which previously had been expanded to include many provider groups, was amended again, to focus on cuts to distinct-part skilled-nursing facilities (DP/SNFs). Under the provisions of the amended bill, Medi-Cal rates for services provided by DP/SNFs would no longer be subject to the cuts implemented by AB 97, effective July 1, 2013. The bill does not affect reimbursement for services prior to that date. Services provided from June 1, 2011 — the effective date of AB 97 — through June 30, 2013, would still be subject to reductions to 2008-09 rates, less 10 percent. AB 900 will now move to the floor for a vote by the Assembly.

In a related action, the Senate Budget Committee adopted a proposal that would increase reimbursement for DP/SNFs, effective July 1, 2013, to levels consistent with 2013-2014, less 10 percent. As with the amended AB 900, the Senate proposal does not remove the “clawback” of dollars associated with services provided in the interim period between June 1, 2011, and June 30, 2013.