WICS Live: Around the States

California: Lawmakers Pass Bill Increasing Medi-Cal Hospital Rates So State Qualifies for Enhanced FMAP. The complex measure is designed to ensure the state continues to qualify for its temporary 11.59% enhancement in federal medical assistance percentage (FMAP), which is the state’s share of $87 billion allocated as part of the American Recovery and Reinvestment Act (ARRA). The bill, which is currently awaiting Governor Arnold Schwarzenegger (R) would increase the upper payment limit by imposing a “quality insurance fee” for outpatient and inpatient services at hospitals that quality for other state health funding other than Medi-Cal. The fee would be levied through December 31, 2010 and is projected to raise $2 billion annually. Revenue from the fee also would offset the impact of an April 6 emergency order by the U.S. Court of Appeals for the Ninth Circuit staying a 10% reduction in hospital Medi-Cal reimbursement rates. It is unclear if Schwarzenegger will sign the legislation; he has stated the bill is fatally flawed and will not receive federal approval.

In other news, lawmakers September 12th also approved legislation to temporarily unemployed Medi-cal beneficiaries with disabilities participating in the state’s Working Disabled Program to remain on Medi-cal for up to 26 weeks as long as federal funding is available. The extension would take effect 30 days after the temporary ARRA-funded increase in the state's Medicaid FMAP is no longer available. The bill was also sent to the governor for signature.