CHA News Article

DHCS Provides Update on Proposition 56 Supplemental Provider Payments

New information from the Department of Health Care Services (DHCS) highlights how a portion of Proposition 56 revenue will be distributed in the 2018-19 state fiscal year. Proposition 56 — also known as the California Healthcare, Research and Prevention Tobacco Tax Act — allocates a portion of the revenue it generates to support health care services across the state. Over the next fiscal year, DHCS proposes to use those funds to:

  • Expand supplemental physician payments to include new and established patient office/outpatient visits, psychiatric diagnostic evaluations, psychiatric diagnostic evaluations with medical services and psychiatric pharmacological management services, as well as various initial and periodic comprehensive, age-appropriate evaluation and management services.
  • Add payments for the top 26 utilized dental services, including general aesthesia, periodontal and orthodontia.
  • Continue supplemental reimbursement to providers under the Family Planning, Access, Care, and Treatment Program.
  • Provide increased reimbursement for state plan home health agency services and certain pediatric day health center services.

DHCS’ proposal is subject to federal approval. Details can be found on the DHCS website.