Press

After months of advocacy, CAHF is pleased to announce that the Legislature late on Aug. 31 passed Assembly Bill 1489, the trailer-bill legislation extending the authorization of AB 1629 for Medi-Cal skilled-nursing facilities.

Passage of the measure in the final minutes of the legislative session is a significant accomplishment for the skilled-nursing community, which was facing possible reimbursement cuts at the beginning of the annual budget process. Approval of AB 1489 ensures a stable reimbursement environment for SNF providers for the next two years. The bill is now on the governor’s desk for his anticipated signature.

The following provisions will be adopted:

• A two-year extension of the quality-assurance fee and the AB 1629 sunset date, from July 31, 2013, to July 31, 2015.
• There will be an increase in the 2012-13 QA fee, and these funds will be diverted to the general fund.
• No reduction in current base rates for 2012-13.
• The 2012-13 rates will not be rebased. The facility-specific Medi-Cal reimbursement rate will be the rate on file as of Aug. 1, 2011, (without the 10-percent payment reduction), adjusted for the projected cost of new mandates.
• A one-year postponement of the Quality and Accountability Program until 2013-14.
• Increases in the AB 1629 global budget cap of 3 percent in 2013-14 and 3 percent in 2014-15, with 1 percent for each year directed to fund the Quality and Accountability Program.
• Rebasing of rates for 2013-14 and 2014-15.

CAHF will notify members when the measure is signed by the governor. Staff contact: Nancy Hayward, (916) 441-6400, ext. 106, nhayward@cahf.org.