Amended IN Senate April 15, 2024 Amended IN Senate March 11, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1033Introduced by Senator MenjivarFebruary 06, 2024An act to add Article 3.87 (commencing with Section 14127) to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to health facilities.LEGISLATIVE COUNSEL'S DIGESTSB 1033, as amended, Menjivar. Health facilities: congregate living health facilities.Existing law provides for the licensure and regulation by the State Department of Public Health of health facilities, including, congregate living health facilities. Existing law defines congregate living health facility as a residential home with a capacity of 18 beds that provides inpatient and skilled nursing care, as specified. Existing law provides for 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 Long-Term Care Reimbursement Act requires the department to implement a facility-specific ratesetting system using a cost-based reimbursement rate methodology and to update these rates annually.This bill would require, beginning January 10, 2026, and every 3 years thereafter, the State Department of Health Care Services to prepare and submit a cost study to the appropriate fiscal and policy committees of the Legislature. The bill would require the cost study to evaluate all financial and operational costs associated with licensed congregate living health facilities, as specified. The bill would require the department to consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties in preparing the study. The bill would require the department to increase rates for licensed congregate living facilities if a cost study shows an increase above the Consumer Price index for the years between the submitted studies. The bill would authorize the department to adjust rates to maintain patient access if licensed congregate living health facilities can demonstrate that costs have increased in a single year. The bill would require the department to adjust rates in a manner consistent with the study. The bill would require, after January 10, 2026, and each year thereafter, rate changes to be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and are to be indexed to the previous fiscal year.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. Article 3.87 (commencing with Section 14127) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 3.87. Congregate Living Health Facilities Cost Study14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.
Amended IN Senate April 15, 2024 Amended IN Senate March 11, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1033Introduced by Senator MenjivarFebruary 06, 2024An act to add Article 3.87 (commencing with Section 14127) to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to health facilities.LEGISLATIVE COUNSEL'S DIGESTSB 1033, as amended, Menjivar. Health facilities: congregate living health facilities.Existing law provides for the licensure and regulation by the State Department of Public Health of health facilities, including, congregate living health facilities. Existing law defines congregate living health facility as a residential home with a capacity of 18 beds that provides inpatient and skilled nursing care, as specified. Existing law provides for 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 Long-Term Care Reimbursement Act requires the department to implement a facility-specific ratesetting system using a cost-based reimbursement rate methodology and to update these rates annually.This bill would require, beginning January 10, 2026, and every 3 years thereafter, the State Department of Health Care Services to prepare and submit a cost study to the appropriate fiscal and policy committees of the Legislature. The bill would require the cost study to evaluate all financial and operational costs associated with licensed congregate living health facilities, as specified. The bill would require the department to consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties in preparing the study. The bill would require the department to increase rates for licensed congregate living facilities if a cost study shows an increase above the Consumer Price index for the years between the submitted studies. The bill would authorize the department to adjust rates to maintain patient access if licensed congregate living health facilities can demonstrate that costs have increased in a single year. The bill would require the department to adjust rates in a manner consistent with the study. The bill would require, after January 10, 2026, and each year thereafter, rate changes to be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and are to be indexed to the previous fiscal year.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Senate April 15, 2024 Amended IN Senate March 11, 2024
Amended IN Senate April 15, 2024
Amended IN Senate March 11, 2024
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 1033
Introduced by Senator MenjivarFebruary 06, 2024
Introduced by Senator Menjivar
February 06, 2024
An act to add Article 3.87 (commencing with Section 14127) to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to health facilities.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1033, as amended, Menjivar. Health facilities: congregate living health facilities.
Existing law provides for the licensure and regulation by the State Department of Public Health of health facilities, including, congregate living health facilities. Existing law defines congregate living health facility as a residential home with a capacity of 18 beds that provides inpatient and skilled nursing care, as specified. Existing law provides for 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 Long-Term Care Reimbursement Act requires the department to implement a facility-specific ratesetting system using a cost-based reimbursement rate methodology and to update these rates annually.This bill would require, beginning January 10, 2026, and every 3 years thereafter, the State Department of Health Care Services to prepare and submit a cost study to the appropriate fiscal and policy committees of the Legislature. The bill would require the cost study to evaluate all financial and operational costs associated with licensed congregate living health facilities, as specified. The bill would require the department to consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties in preparing the study. The bill would require the department to increase rates for licensed congregate living facilities if a cost study shows an increase above the Consumer Price index for the years between the submitted studies. The bill would authorize the department to adjust rates to maintain patient access if licensed congregate living health facilities can demonstrate that costs have increased in a single year. The bill would require the department to adjust rates in a manner consistent with the study. The bill would require, after January 10, 2026, and each year thereafter, rate changes to be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and are to be indexed to the previous fiscal year.
Existing law provides for the licensure and regulation by the State Department of Public Health of health facilities, including, congregate living health facilities. Existing law defines congregate living health facility as a residential home with a capacity of 18 beds that provides inpatient and skilled nursing care, as specified. Existing law provides for 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 Long-Term Care Reimbursement Act requires the department to implement a facility-specific ratesetting system using a cost-based reimbursement rate methodology and to update these rates annually.
This bill would require, beginning January 10, 2026, and every 3 years thereafter, the State Department of Health Care Services to prepare and submit a cost study to the appropriate fiscal and policy committees of the Legislature. The bill would require the cost study to evaluate all financial and operational costs associated with licensed congregate living health facilities, as specified. The bill would require the department to consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties in preparing the study. The bill would require the department to increase rates for licensed congregate living facilities if a cost study shows an increase above the Consumer Price index for the years between the submitted studies. The bill would authorize the department to adjust rates to maintain patient access if licensed congregate living health facilities can demonstrate that costs have increased in a single year. The bill would require the department to adjust rates in a manner consistent with the study. The bill would require, after January 10, 2026, and each year thereafter, rate changes to be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and are to be indexed to the previous fiscal year.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Article 3.87 (commencing with Section 14127) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 3.87. Congregate Living Health Facilities Cost Study14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Article 3.87 (commencing with Section 14127) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 3.87. Congregate Living Health Facilities Cost Study14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.
SECTION 1. Article 3.87 (commencing with Section 14127) is added to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, to read:
### SECTION 1.
Article 3.87. Congregate Living Health Facilities Cost Study14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.
Article 3.87. Congregate Living Health Facilities Cost Study14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.
Article 3.87. Congregate Living Health Facilities Cost Study
Article 3.87. Congregate Living Health Facilities Cost Study
14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.
14127. (a) On or before January 10, 2026, and every three years thereafter, the State Department of Health Care Services shall submit a cost study to the appropriate fiscal and policy committees of the Legislature. This cost study shall evaluate all financial and operational costs associated with licensed congregate living health facilities in California. In developing the cost study, the department shall consult with congregate living health facility providers, patients or families, caregivers, and other relevant parties.
(b) The study shall include, but not be limited to, an assessment of the operational costs of direct and indirect labor, licensing fees, medical equipment, food, utilities, liability insurance, property tax, and staff training.
(c)If a cost study prepared pursuant to this section shows increases in operational costs above the Consumer Price Index for the years between each study, the department shall increase rates for licensed congregate living facilities to an amount that accounts for and reimburses the excess costs.
(d)To the extent that licensed congregate living health facilities can demonstrate that costs have increased in a single year, the department may adjust rates in a non-study year to maintain patient access.
(c) Notwithstanding any other law, the department shall adjust rates in a manner consistent with the triennial rate study required by subdivision (a). After January 10, 2026, and each year thereafter, rate changes shall be included in the Medi-Cal estimate, consistent with the annual Budget Act released on or before January 10 of each year, and shall be indexed to the previous fiscal year.