MEDI‐CAL HOSPITAL FEE PROGRAM. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.
OFFICIAL TITLE AND SUMMARY
PREPARED BY THE ATTORNEY GENERAL
- Extends indefinitely an existing statute that imposes fees on hospitals to obtain federal matching funds.
- Uses fees to fund Medi‐Cal health care services, care for uninsured patients, and children's health coverage.
- Requires voter approval to change use of fees or funds.
- Permits other amendments or repeal by Legislature with a two–thirds vote.
- Declares fee proceeds do not count as revenue toward state spending limit or Proposition 98 funding requirement.
SUMMARY OF LEGISLATIVE ANALYST'S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:
- The fiscal effect of this measure is uncertain primarily because it is not known whether the Legislature would have extended the hospital fee absent the measure.
- If the Legislature would have extended the hospital fee absent this measure, the measure would likely have relatively little fiscal effect on the state and local governments.
- If the Legislature would not have extended the hospital fee absent the measure, the measure could result in state General Fund savings of around $1 billion annually and increased funding for public hospitals in
the low hundreds of millions of dollars annually.
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