CHA News

Hospital Fee Bill to Be Acted on This Week

Legislature Begins Recess Sept. 11

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AB 1383 (Jones, D-Sacramento/Alquist, D-Santa Clara) will be decided this week by the Legislature before recess begins Sept. 11. The bill describes a hospital fee proposal agreed to by the CHA Board on Aug. 14. Using the hospital fee, AB 1383 would provide supplemental Medi-Cal payments to hospitals to capture federal matching funds. The expected benefit to hospitals is estimated at $2 billion annually, with the state receiving $320 million for the cost of children’s coverage.

If the bill passes both houses of the Legislature, the Governor will have 30 days to sign or veto the bill. If enacted, AB 1383 would direct the Department of Health Care Services to submit a proposal to the Centers for Medicare & Medicaid Services for federal approval. The approval process could be lengthy, and would not be without risk and uncertainty.