Hospital Fee Program

Update on Hospital Fee Program CY 2021 Passthrough

Traditionally, the Department of Health Care Services (DHCS) processes Medi-Cal managed care supplemental payments at or near the federal funding claiming limit. This lengthy timeline was factored into the original 2019-21 Hospital Fee Program schedules that CHA distributed to hospitals in April 2020.

CHA Webinar Will Give Update on Hospital Fee Program Status

CHA will host a Hospital Fee Program Status (7) Update webinar on Oct. 5 from 1 to 2 p.m. (PT).   With the Hospital Fee Program set to expire at the end of the year, CHA is preparing to work with state officials to develop the next program, so it can be submitted to the Centers for Medicare & Medicaid Services for approval. 

Hospital Fee Program Status

The Hospital Quality Assurance Fee (HQAF) Program and all of its statutory provisions were made permanent through the passage of CHA’s ballot initiative, the Medi-Cal Funding and Accountability Act (Proposition 52), in the November 2016 general election. While this provides the framework for all future hospital fee programs, future iterations must adhere to federal regulations related to health-care provider taxes. Further, the Department of Health Care Services (DHCS) must obtain all necessary federal approvals.

CHA to Release 2019-21 Hospital Fee Program Pass-Through Schedules

On Feb. 5, CHA will distribute payment schedules to all Medi-Cal health plans and eligible hospitals for the 2019-21 Hospital Fee Program managed care pass-through cycle for July 1, 2019-Dec. 31, 2020. As previously shared in CHA News, these payment schedules will be associated with the fees collected by the Department of Health Care Service (DHCS) on Dec. 23, 2020, with a single invoice labeled as “MC1 PT” and “MC2 PT.”