AB 115 — Medi-Cal: managed care organization provider tax.

Summary

(1) Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans. Existing law, until July 1, 2019, imposed a managed care organization provider tax, administered and assessed by the department, on licensed health care service plans, managed care plans contracted with the department to provide Medi-Cal services, and alternate health care service plans (AHCSP) , as defined. The tax included the establishment of applicable taxing tiers and per enrollee amounts for each fiscal year, and all revenues, less refunds, derived from the tax were deposited into the State Treasury to the credit of the Health and Human Services Special Fund in the State Treasury, and continuously appropriated to the department for purposes of funding the nonfederal share of Medi-Cal managed care rates for health care services furnished to specified persons. Existing law declares the intent of the Legislature to enact a managed care organization provider tax in California, and requires the collection of the tax and the associated revenue contingent upon receipt of approval from the federal Centers for Medicare and Medicaid Services. This bill would establish a managed care organization provider tax, with substantially similar provisions, that would become effective and operative on the effective date of the federal approval necessary for receipt of federal financial participation, as specified. The bill would specify the applicable tax amounts for each taxing tier for the 2019–20, 2020–21, and 2021–22, fiscal years, and the first 6 months of the 2022–23 fiscal year. The bill would establish the Health Care Services Special Fund. All revenues, less refunds, derived from the taxes provided for in the bill would be deposited in the State Treasury to the credit of the fund and continuously appropriated, without regard to fiscal year, to the department for purposes of funding the nonfederal share of Medi-Cal managed care rates for health care services furnished to children, adults, seniors and persons with disabilities, and persons dually eligible for Medi-Cal and Medicare. By creating a continuously appropriated fund, the bill would make an appropriation. This bill would make these provisions inoperative on January 1, 2023, or under other circumstances specified in the bill, and would repeal it as of January 1, 2024. (2) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. (3) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 09/27/19 - Chaptered Current pdf September 27, 2019
• Enrolled 09/17/19 - Enrolled pdf September 17, 2019
• Amended 08/29/19 - Amended Senate pdf August 29, 2019
• Introduced 12/03/18 - Introduced pdf December 03, 2018
• AB115 View text html

Action History

1. September 27, 2019

   Chaptered by Secretary of State - Chapter 348, Statutes of 2019.

2. September 27, 2019

   Approved by the Governor.

3. September 23, 2019

   Enrolled and presented to the Governor at 3:30 p.m.

4. September 12, 2019

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 55. Noes 13. Page 3488.).

5. September 12, 2019

   Assembly Rule 63 suspended. (Page 3466.)

6. September 12, 2019

   In Assembly. Concurrence in Senate amendments pending.

7. September 12, 2019

   Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 29. Noes 11. Page 2901.).

8. September 11, 2019

   Read second time. Ordered to third reading.

9. September 10, 2019

   From committee: Do pass. (Ayes 12. Noes 4.) (September 10).

10. September 09, 2019

    Senate Rule 29.3(b) suspended. (Ayes 29. Noes 7. Page 2690.)

11. August 30, 2019

    In committee: Hearing postponed by committee.

12. August 29, 2019

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.R.

13. August 26, 2019

    In committee: Hearing postponed by committee.

14. April 24, 2019

    Referred to Com. on B. & F.R.

15. April 11, 2019

    In Senate. Read first time. To Com. on RLS. for assignment.

16. April 11, 2019

    Read third time. Passed. Ordered to the Senate. (Ayes 54. Noes 13. Page 1185.)

17. April 08, 2019

    Read second time. Ordered to third reading.

18. April 04, 2019

    Ordered to second reading.

19. April 04, 2019

    Withdrawn from committee.

20. April 04, 2019

    Assembly Rule 96 suspended. (Ayes 53. Noes 15. Page 1032.)

21. January 24, 2019

    Referred to Com. on BUDGET.

22. December 04, 2018

    From printer. May be heard in committee January 3.

23. December 03, 2018

    Read first time. To print.

Sponsors

• Committee on Budget · Primary

Votes

Subjects