The new law stops payment cuts for non-rural, hospital-based skilled nursing facilities under the state’s Medicaid program, Medi-Cal. Additionally, the measure lifts a Medi-Cal rate freeze for non-rural providers. The California Department of Health Care Services exempted rural facilities from the rate freeze and reimbursement cuts in August, according to the CHA.
The law provides additional Medicaid funds by extending a hospital provider fee program by three years. This will significantly benefit hospitals with payer mixes that depend heavily on Medi-Cal, according to Moody’s Investors Service. Various healthcare providers and managed care organizations are required to pay the fee, which is then used to increase reimbursements to hospitals that depend on Medi-Cal. The fee was previously set to expire Dec. 31.
The law will provide $2.4 billion in additional revenue to the state general fund, according to the CHA. Furthermore, the hospital association estimates the legislation will preserve 36,000 jobs and $2 billion in annual contributions to the state economy.
More Articles on Medi-Cal:
Moody’s: Medicaid Provider Fee Extension Benefits California Hospitals
Committee Approves Medicaid Provider Fee for California Hospitals
California Outlines Medi-Cal Provider Cut Plan
