L.A. Health Department Anticipates Funds From Provider Fee, Waiver
The Los Angeles County Department of Health Services is counting on a hospital provider fee and a federal Medi-Cal waiver extension to help close its $600 million deficit for this fiscal year and the previous fiscal year, the Los Angeles Times' "L.A. Now" reports. Medi-Cal is California's Medicaid program.
Hospital Fee
Last week, the Senate approved AB 1653, by Assembly member Dave Jones (D-Sacramento), which outlines details of a plan to impose a fee on private hospitals to draw down federal Medicaid funds. The Assembly passed the measure on Monday evening.
L.A. County's DHS expected to receive $144 million from the legislation to help cover last year's $200 million deficit, and $57.5 million for the first six months of this fiscal year.
According to state officials, lawmakers will need to propose separate legislation this fall to extend the fee in 2011.
Medi-Cal Waiver
Meanwhile, the county is awaiting funds from the extension of a federal Medicaid waiver. L.A. County previously received about $300 million annually from the waiver, and county officials had hoped to receive an additional $150 million for this fiscal year. The waiver is scheduled to expire on Tuesday.
On Friday, federal officials agreed to a 60-day waiver extension that would provide California with about $255 million. John Schunhoff, chief of the county DHS, said that L.A. County would receive about $25 million less than expected under the 60-day extension.
Gregory Franklin -- deputy director of health care operations at the state Department of Health Care Services -- said that state and federal officials are continuing to negotiate a five-year waiver deal that would provide California with about $10 billion.
Officials from both sides say they expect an agreement by Oct. 31, and state lawmakers will have until Nov. 15 to act on legislation related to implementing the waiver (Hennessy-Fiske, "L.A. Now," Los Angeles Times, 8/30).
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