Amended IN Assembly April 08, 2019 Amended IN Assembly March 28, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 719Introduced by Assembly Member DiepFebruary 19, 2019 An act to amend Section 14079 14105.191 of the Welfare and Institutions Code, relating to Medi-Cal.LEGISLATIVE COUNSEL'S DIGESTAB 719, as amended, Diep. Medi-Cal: reimbursement rates: physicians and dentists. rates.Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law requires, for dates of service on or after March 1, 2009, the Director of Health Care Services to reduce specified provider payments, including a 1% payment reduction for Medi-Cal fee-for-service benefits, in order to implement changes in the level of funding for health care services.This bill would, for dates of service on or after January 1, 2020, require the department to discontinue reducing or limiting the provider payments as prescribed in these provisions.Existing law requires the Director of Health Care Services to annually review the reimbursement levels for physician and dental services under the Medi-Cal program, and to periodically revise the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services. Existing law requires that the annual review, as it relates to rates for physician services, take into account specified factors, including annual cost increases for physicians as reflected by the Consumer Price Index (CPI).This bill would require that the annual review also take into account annual cost increases for physicians as reflected by the Consumer Price Index for All Urban Consumers (CPI-U). The bill would require the director to annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the CPI or the CPI-U, whichever are higher.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 14105.191 of the Welfare and Institutions Code is amended to read:14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.(C) Rural swing-bed facilities.(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(F) Adult day health care centers.(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).(3) Rural health clinic services.(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.(7) Hospice services.(8) Contract services, as designated by the director pursuant to subdivision (g).(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:(A) Facilities identified in paragraph (5) of subdivision (d).(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.SECTION 1.Section 14079 of the Welfare and Institutions Code is amended to read:14079.(a)The director annually shall review the reimbursement levels for physician and dental services under the Medi-Cal program, and shall revise periodically the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services.(b)In addition to any other revisions made pursuant to subdivision (a), the director shall annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the Consumer Price Index (CPI) or the Consumer Price Index for All Urban Consumers (CPI-U), whichever is higher.(c)The annual review described in subdivision (a), as it relates to rates for physician services, shall take into account at least all of the following factors:(1)Annual cost increases for physicians as reflected by the CPI and the CPI-U.(2)Physician reimbursement levels of the federal Medicare Program, Blue Shield, and other third-party payors.(3)Prevailing customary physician charges within the state and in various geographical areas.(4)Procedures reflected by the current Relative Value Studies (RVS).(5)Characteristics of the current population of Medi-Cal beneficiaries and the medical services needed.
Amended IN Assembly April 08, 2019 Amended IN Assembly March 28, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 719Introduced by Assembly Member DiepFebruary 19, 2019 An act to amend Section 14079 14105.191 of the Welfare and Institutions Code, relating to Medi-Cal.LEGISLATIVE COUNSEL'S DIGESTAB 719, as amended, Diep. Medi-Cal: reimbursement rates: physicians and dentists. rates.Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law requires, for dates of service on or after March 1, 2009, the Director of Health Care Services to reduce specified provider payments, including a 1% payment reduction for Medi-Cal fee-for-service benefits, in order to implement changes in the level of funding for health care services.This bill would, for dates of service on or after January 1, 2020, require the department to discontinue reducing or limiting the provider payments as prescribed in these provisions.Existing law requires the Director of Health Care Services to annually review the reimbursement levels for physician and dental services under the Medi-Cal program, and to periodically revise the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services. Existing law requires that the annual review, as it relates to rates for physician services, take into account specified factors, including annual cost increases for physicians as reflected by the Consumer Price Index (CPI).This bill would require that the annual review also take into account annual cost increases for physicians as reflected by the Consumer Price Index for All Urban Consumers (CPI-U). The bill would require the director to annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the CPI or the CPI-U, whichever are higher.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 08, 2019 Amended IN Assembly March 28, 2019
Amended IN Assembly April 08, 2019
Amended IN Assembly March 28, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 719
Introduced by Assembly Member DiepFebruary 19, 2019
Introduced by Assembly Member Diep
February 19, 2019
An act to amend Section 14079 14105.191 of the Welfare and Institutions Code, relating to Medi-Cal.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 719, as amended, Diep. Medi-Cal: reimbursement rates: physicians and dentists. rates.
Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law requires, for dates of service on or after March 1, 2009, the Director of Health Care Services to reduce specified provider payments, including a 1% payment reduction for Medi-Cal fee-for-service benefits, in order to implement changes in the level of funding for health care services.This bill would, for dates of service on or after January 1, 2020, require the department to discontinue reducing or limiting the provider payments as prescribed in these provisions.Existing law requires the Director of Health Care Services to annually review the reimbursement levels for physician and dental services under the Medi-Cal program, and to periodically revise the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services. Existing law requires that the annual review, as it relates to rates for physician services, take into account specified factors, including annual cost increases for physicians as reflected by the Consumer Price Index (CPI).This bill would require that the annual review also take into account annual cost increases for physicians as reflected by the Consumer Price Index for All Urban Consumers (CPI-U). The bill would require the director to annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the CPI or the CPI-U, whichever are higher.
Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law requires, for dates of service on or after March 1, 2009, the Director of Health Care Services to reduce specified provider payments, including a 1% payment reduction for Medi-Cal fee-for-service benefits, in order to implement changes in the level of funding for health care services.
This bill would, for dates of service on or after January 1, 2020, require the department to discontinue reducing or limiting the provider payments as prescribed in these provisions.
Existing law requires the Director of Health Care Services to annually review the reimbursement levels for physician and dental services under the Medi-Cal program, and to periodically revise the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services. Existing law requires that the annual review, as it relates to rates for physician services, take into account specified factors, including annual cost increases for physicians as reflected by the Consumer Price Index (CPI).
This bill would require that the annual review also take into account annual cost increases for physicians as reflected by the Consumer Price Index for All Urban Consumers (CPI-U). The bill would require the director to annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the CPI or the CPI-U, whichever are higher.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 14105.191 of the Welfare and Institutions Code is amended to read:14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.(C) Rural swing-bed facilities.(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(F) Adult day health care centers.(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).(3) Rural health clinic services.(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.(7) Hospice services.(8) Contract services, as designated by the director pursuant to subdivision (g).(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:(A) Facilities identified in paragraph (5) of subdivision (d).(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.SECTION 1.Section 14079 of the Welfare and Institutions Code is amended to read:14079.(a)The director annually shall review the reimbursement levels for physician and dental services under the Medi-Cal program, and shall revise periodically the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services.(b)In addition to any other revisions made pursuant to subdivision (a), the director shall annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the Consumer Price Index (CPI) or the Consumer Price Index for All Urban Consumers (CPI-U), whichever is higher.(c)The annual review described in subdivision (a), as it relates to rates for physician services, shall take into account at least all of the following factors:(1)Annual cost increases for physicians as reflected by the CPI and the CPI-U.(2)Physician reimbursement levels of the federal Medicare Program, Blue Shield, and other third-party payors.(3)Prevailing customary physician charges within the state and in various geographical areas.(4)Procedures reflected by the current Relative Value Studies (RVS).(5)Characteristics of the current population of Medi-Cal beneficiaries and the medical services needed.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 14105.191 of the Welfare and Institutions Code is amended to read:14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.(C) Rural swing-bed facilities.(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(F) Adult day health care centers.(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).(3) Rural health clinic services.(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.(7) Hospice services.(8) Contract services, as designated by the director pursuant to subdivision (g).(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:(A) Facilities identified in paragraph (5) of subdivision (d).(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.
SECTION 1. Section 14105.191 of the Welfare and Institutions Code is amended to read:
### SECTION 1.
14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.(C) Rural swing-bed facilities.(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(F) Adult day health care centers.(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).(3) Rural health clinic services.(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.(7) Hospice services.(8) Contract services, as designated by the director pursuant to subdivision (g).(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:(A) Facilities identified in paragraph (5) of subdivision (d).(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.
14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.(C) Rural swing-bed facilities.(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(F) Adult day health care centers.(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).(3) Rural health clinic services.(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.(7) Hospice services.(8) Contract services, as designated by the director pursuant to subdivision (g).(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:(A) Facilities identified in paragraph (5) of subdivision (d).(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.
14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.(C) Rural swing-bed facilities.(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(F) Adult day health care centers.(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).(3) Rural health clinic services.(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.(7) Hospice services.(8) Contract services, as designated by the director pursuant to subdivision (g).(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:(A) Facilities identified in paragraph (5) of subdivision (d).(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.
14105.191. (a) Notwithstanding any other provision of law, in order to implement changes in the level of funding for health care services, the director shall reduce provider payments, as specified in this section.
(b) (1) Except as otherwise provided in this section, payments shall be reduced by 1 percent for Medi-Cal fee-for-service benefits for dates of service on and after March 1, 2009.
(2) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, payments to the following classes of providers shall be reduced by 5 percent for Medi-Cal fee-for-service benefits:
(A) Intermediate care facilities, excluding those facilities identified in paragraph (5) of subdivision (d). For purposes of this section, intermediate care facility has the same meaning as defined in Section 51118 of Title 22 of the California Code of Regulations.
(B) Skilled nursing facilities that are distinct parts of general acute care hospitals. For purposes of this section, distinct part has the same meaning as defined in Section 72041 of Title 22 of the California Code of Regulations.
(C) Rural swing-bed facilities.
(D) Subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, subacute care unit has the same meaning as defined in Section 51215.5 of Title 22 of the California Code of Regulations.
(E) Pediatric subacute care units that are, or are parts of, distinct parts of general acute care hospitals. For purposes of this subparagraph, pediatric subacute care unit has the same meaning as defined in Section 51215.8 of Title 22 of the California Code of Regulations.
(F) Adult day health care centers.
(3) Except as provided in subdivision (d), for dates of service on and after March 1, 2009, Medi-Cal fee-for-service payments to pharmacies shall be reduced by 5 percent.
(4) Except as provided in subdivision (d), payments shall be reduced by 1 percent for non-Medi-Cal programs described in Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code, and Section 14105.18, for dates of service on and after March 1, 2009.
(5) For managed health care plans that contract with the department pursuant to this chapter, Chapter 8 (commencing with Section 14200), and Chapter 8.75 (commencing with Section 14591), payments shall be reduced by the actuarial equivalent amount of the payment reductions specified in this subdivision pursuant to contract amendments or change orders effective on July 1, 2008, or thereafter.
(c) Notwithstanding any other provision requirement of this section, payments to hospitals that are not under contract with the State Department of Health Care Services department pursuant to Article 2.6 (commencing with Section 14081) for inpatient hospital services provided to Medi-Cal beneficiaries and that are subject to former Section 14166.245 shall be governed by that section.
(d) To the extent applicable, the services, facilities, and payments listed in this subdivision shall be exempt from the payment reductions specified in subdivision (b):
(1) Acute hospital inpatient services that are paid under contracts pursuant to Article 2.6 (commencing with Section 14081).
(2) Federally qualified health center services, including those facilities deemed to have that have a federally qualified health center status pursuant to a waiver pursuant to as authorized under subsection (a) of Section 1115 of the federal Social Security Act (42 U.S.C. Sec. 1315(a)).
(3) Rural health clinic services.
(4) Skilled nursing facilities licensed pursuant to subdivision (c) of Section 1250 of the Health and Safety Code other than Code, excluding those specified in paragraph (2) of subdivision (b).
(5) Intermediate care facilities for the developmentally disabled licensed pursuant to subdivision (e), (g), or (h) of Section 1250 of the Health and Safety Code, or facilities providing continuous skilled nursing care to developmentally disabled individuals pursuant to the pilot project established by Section 14495.10.
(6) Payments to facilities owned or operated by the State Department of State Hospitals or the State Department of Developmental Services.
(7) Hospice services.
(8) Contract services, as designated by the director pursuant to subdivision (g).
(9) Payments to providers to the extent that the payments are funded by means of a certified public expenditure or an intergovernmental transfer pursuant to Section 433.51 of Title 42 of the Code of Federal Regulations.
(10) Services pursuant to local assistance contracts and interagency agreements to the extent the funding is not included in the funds appropriated to the department in the annual Budget Act.
(11) Payments to Medi-Cal managed care plans pursuant to Section 4474.5 for services to consumers transitioning from Agnews Developmental Center into the Counties of Alameda, San Mateo, and Santa Clara pursuant to the Plan for the Closure of Agnews Developmental Center.
(12) Breast and cervical cancer treatment provided pursuant to as described in Section 14007.71 and as described in 14007.71, paragraph (3) of subdivision (a) of Section 14105.18 14105.18, or Article 1.5 (commencing with Section 104160) of Chapter 2 of Part 1 of Division 103 of the Health and Safety Code.
(13) The Family Planning, Access, Care, and Treatment (Family PACT) Program pursuant to subdivision (aa) of Section 14132.
(14) Small and rural hospitals, as defined in Section 124840 of the Health and Safety Code.
(e) Subject to the exemptions listed in subdivision (d), the payment reductions required by paragraph (1) of subdivision (b) shall apply to the benefits rendered by any provider who may be authorized to bill for provision of the benefit, including, but not limited to, physicians, podiatrists, nurse practitioners, certified nurse midwives, nurse anesthetists, and organized outpatient clinics.
(f) (1) Notwithstanding any other provision of law, Medi-Cal reimbursement rates applicable to the classes of providers identified in paragraph (2) of subdivision (b), for services rendered during the 200910 rate year and each rate year thereafter, shall not exceed the reimbursement rates that were applicable to those classes of providers in the 200809 rate year.
(2) In addition to the classes of providers described in paragraph (1), Medi-Cal reimbursement rates applicable to the following classes of facilities for services rendered during the 200910 rate year, and each rate year thereafter, shall not exceed the reimbursement rates that were applicable applied to those facilities and services in the 200809 rate year:
(A) Facilities identified in paragraph (5) of subdivision (d).
(B) Freestanding pediatric subacute care units, as defined in Section 51215.8 of Title 22 of the California Code of Regulations.
(3) Paragraphs (1) and (2) shall not apply to providers that are paid pursuant to Article 3.8 (commencing with Section 14126), or to services, facilities, and payments specified in subdivision (d), with the exception of facilities described in paragraph (5) of subdivision (d).
(4) The limitation set forth in this subdivision shall be applied only after the reductions in paragraph (2) of subdivision (b) have been made.
(g) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.
(h) The reductions and limitations described in this section shall apply only to payments for benefits when the General Fund share of the payment is paid with funds directly appropriated to the department in the annual Budget Act, and shall not apply to payments for benefits paid with funds appropriated to other departments or agencies.
(i) The department shall promptly seek any necessary federal approvals for the implementation of this section. To the extent that federal financial participation is not available with respect to any payment that is reduced or limited pursuant to this section, the director may elect not to implement that reduction or limitation.
(j) Notwithstanding any other law, for dates of service on or after January 1, 2020, the department shall discontinue reducing or limiting the provider payments specified in this section.
(a)The director annually shall review the reimbursement levels for physician and dental services under the Medi-Cal program, and shall revise periodically the rates of reimbursement to physicians and dentists to ensure the reasonable access of Medi-Cal beneficiaries to physician and dental services.
(b)In addition to any other revisions made pursuant to subdivision (a), the director shall annually adjust the rates of reimbursement to physicians and dentists based on the annual changes to the Consumer Price Index (CPI) or the Consumer Price Index for All Urban Consumers (CPI-U), whichever is higher.
(c)The annual review described in subdivision (a), as it relates to rates for physician services, shall take into account at least all of the following factors:
(1)Annual cost increases for physicians as reflected by the CPI and the CPI-U.
(2)Physician reimbursement levels of the federal Medicare Program, Blue Shield, and other third-party payors.
(3)Prevailing customary physician charges within the state and in various geographical areas.
(4)Procedures reflected by the current Relative Value Studies (RVS).
(5)Characteristics of the current population of Medi-Cal beneficiaries and the medical services needed.