CHA News Article

CHA Testifies at Joint Informational Hearing on Medicaid Managed Care Rule

The state Legislature held a joint informational hearing of the health committees of both houses yesterday to discuss implementation of the Medicaid managed care rule. The new federal rule will impact plans, providers and consumers. CHA participated on the provider panel to address concerns about the impact to the hospital fee program, which could result in potentially fewer resources for hospitals and Medi-Cal patients. Anne McLeod, senior vice president for health policy and innovation, represented CHA.

“The current method of making supplemental payments through Medi-Cal managed care plans is not aligned with the requirements in the final rules. They are considered pass-through payments and must be phased out starting July 1, 2017,” said McLeod. “The hospital fee could be much smaller than any of us want it to be — billions of dollars less. This means less money for hospital care for Medi-Cal beneficiaries, and it means that for every dollar we have to shrink the program, the state loses 24 cents.”

The committees also heard remarks from the Department of Health Care Services, Medi-Cal managed care plans, consumers and other stakeholders. The meeting agenda is attached.