Health and Human Services 09/27/2013
Health Care Budget Bill
SB 98 (Committee on Budget and Fiscal Review) – Request for
Signature
Chaptered September 26, 2013
The Governor signed SB 98, by the Senate Committee on Budget and Fiscal Review, into law on Thursday. SB 98 is a technical cleanup measure related to AB 85, the budget trailer bill outlining the county health realignment “savings” framework under the Affordable Care Act (ACA), and it contained several key provisions for counties, including:
Hard Cap on 2013-14 Contribution. SB 98 includes a
“hard cap” on the $300 million in 1991 health realignment
payments that counties will make to the state in the first six
months of 2014. Under AB 85, a county that elected to determine
savings related to indigent health care through the cost/revenue
formula option might have had to pay more than their proportional
share of the $300 million under the “true up” mechanism. SB 98
clarifies this provision, ensuring that counties that choose the
formula option will pay no more than their original proportional
share of the $300 million.
Deadline Extensions. SB 98 extends key deadlines for
counties and the state, which will ensure the accuracy of the
data processes outlined in AB 85. Many of the deadlines have been
moved back at least 30 days, including the date by which a county
must formally choose either the 60/40 split or cost/revenue
formula route from December 4, 2013 to January 22, 2014. The
table below illustrates the date changes that are now expected to
become law:
|
Tasks |
AB 85 Deadline |
Proposed New Deadline |
|
Counties Must Tentatively Inform DHCS of Route: Cost/revenue Formula or 60/40 Split |
October 1, 2013 |
November 1, 2013 |
|
Counties Electing to Choose the Cost/Revenue Formula (and CMSP) Must Adopt a Resolution and Notify the State |
December 4, 2013 |
January 22, 2014 |
|
Counties That Choose the Cost/Revenue Formula Must Provide Historical Realignment Cost Calculations to the State |
September 30, 2013 |
October 31, 2013 |
|
If the State Disagrees with a County’s Historical Realignment Cost Calculations, DHCS Must Notify the County by This Date |
November 15, 2013 |
December 15, 2013 |
|
County Funding Resolution Committee Must Determine the Form of Petition / Disagreement Outlined Above |
December 31, 2013 |
January 31, 2014 |
- 1991 Realignment Structure. AB 85 created a new “base” account in the 1991 Realignment structure: the Family and Support Services Account. While CSAC and our county partners were initially concerned about this development, further analysis has confirmed that, under normal fiscal circumstances, the new account will not negatively affect the existing Health, Mental Health, and Social Services Accounts. As above, CSAC will continue to monitor the operation of this provision and raise concerns should any arise in the future.
Each of the above provisions, as well as the myriad technical changes embodied in SB 98, had received extensive thought and review from counties. CSAC wishes to thank the Governor for signing SB 98 into law.
