California Legislative Beat
California’s 2021-2022 Budget Process Begins with Record High Proposal
Mallory Warner, Health Policy Research Fellow February 12, 2021
Following a tumultuous year that brought about a pandemic-induced recession and consequent budget cuts, California’s 2021-2022 budget year was initiated on January 8th when Governor Gavin Newsom released a $227 billion spending plan, which is notably the most expensive budget proposal in state history. Right before the May Revise for the 2019-2020 fiscal year was released last year, the Department of Finance projected a deficit of more than $54 billion in the California state budget as a result of decreased tax revenue and increased demand for social services.[1] Obviously, this …
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Expanding Scope of Practice for Nurse Practitioners in California: AB 890 Compromises to Permit Independent Practice
Alex Montague, Health Policy Researcher December 15, 2020
This legislative session, California Governor Gavin Newsom signed AB 890, legislation that expands the existing scope of practice laws for nurse practitioners (NPs).[1] The law brings California in line with over half of the states in the U.S. by permitting NPs to practice independently and to the full extent of their training and education. As demand for healthcare workers continues to surge with the number of COVID-19 cases in this country, AB 890 helps pave the way for more healthcare providers to provide crucial care where it is needed. This …
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Rate Regulation in California: AB 2118 Makes Strides, But Falls Short of Comprehensive Rate Review
Katie Gudiksen, Senior Health Policy Researcher October 26, 2020
In the 2020 legislative session, the California legislature enacted AB 2118 to require insurance companies selling insurance plans in the individual or small group market in California to file additional information, including premiums, cost sharing, benefits, enrollment, and trend factors, with the state Department of Managed Health Care (DMHC) or the California Department of Insurance (CDI).[1] This new law reflects an effort to give state agencies better oversight of state healthcare markets by patching small holes in the rate review process of state regulators. However, the time may be ripe …
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Post-Mortem Reflection on SB 977: The Significance of What Could’ve and Should’ve Been
Mallory Warner, Health Policy Research Fellow September 16, 2020
In the 2020 legislative session, California attempted to markedly expand the attorney general’s (AG) powers to intervene in healthcare acquisitions and changes of control. Senate Bill (SB) 977 would have required AG approval before for-profit healthcare entities could consolidate in California. The passage of SB 977 would have been historic and a massive step in antitrust enforcement in the healthcare industry. Unfortunately, SB 977 failed this session without ever being discussed in the Assembly or the Senate. In this post, we review what SB 977 could have done, why it …
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Q&A: The What, When, Who and How of California’s New APCD: The Health Care Payments Data System
Mallory Warner, Health Policy Research Fellow August 17, 2020
Last month, we discussed California healthcare proposals that were postponed or cut due to budget constraints brought on by the pandemic-induced recession. California’s proposed all-payers claims database (APCD) project, the Health Care Payments Data (HPD) Program, was one proposal that survived. The passage of the HPD Program demonstrates the Legislature’s understanding that health care price transparency is important enough to withstand an extreme budget crunch. In this post, we take a look at the specifics of California’s new APCD and answer some important questions about its implementation and what it …
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The California Budget During the COVID-19 Pandemic: A Balancing Act
Mallory Warner, Health Policy Research Fellow July 15, 2020
The world in January was a very different place than the world today. The effects of the pandemic-induced recession are clearly reflected in the California budget. In January, California was projected to have a surplus of $5.6 billion. By the Governor’s May Revision, however, the state was facing an estimated deficit of $54.3 billion.[1] The difference of $60 billion in four short months was created by the COVID-19 crisis. As a result, legislative priorities from the beginning of the year inevitably shifted, as the Assembly and Senate approved a $202.1 …
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[In the Press] Source Executive Editor Interview Quoted in Los Angeles Times Regarding SB 977
Amy Y. Gu, Managing Editor June 8, 2020
The Source Executive Editor Jaime King was recently quoted in the Los Angeles Times article “California seeks more power to fight healthcare mergers,” regarding SB 977, a bill that would grant significantly more merger review power to the Attorney General in California: “The best way to prevent problems from occurring in a merger is just to prevent the merger altogether,” said Jaime King, associate dean at UC Hastings College of the Law in San Francisco. “It’s really hard to unwind a merger after you’ve already done it.” SB 977 incorporated …
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AB 2036 Seeks to Rectify a Loophole in California AG Merger Oversight But Can Go Further
Sammy Chang, Health Policy Researcher May 13, 2020
As California continues to shelter in place and limit the spread of COVID-19, the California Legislature is forced to cut the number of bills it can consider this session. However, as hospitals struggle financially and possibly seek mergers to survive, merger oversight over nonprofit hospitals is more critical than ever to maintain health access. Under California law, the state Attorney General (“AG”) can impose conditional approval for mergers or acquisitions involving non-profit health facilities. Two recent bankruptcy court cases have threatened the viability of these conditional approvals by limiting the …
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Gov. Newsom’s Veto of AB 1014 Prevents Greater Regulation over Emergency Department Closures Amidst Loss of Health Access
Sammy Chang, Health Policy Researcher February 1, 2020
In California and elsewhere, the closure of emergency departments (“ED”) reduces access and negatively affects patient health, particularly to the primary users of EDs, who are often low-income and most affected by the closure. In 2014, the American College of Emergency Physicians (ACEP) observed that California had the lowest number of EDs per capita[1] and gave California an “F”, ranking the state 42nd in the country in terms of access to emergency care.[2] However, California’s latest attempt to strengthen state oversight over ED closures faltered when Governor Newsom vetoed AB …
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California’s 2020-2021 Budget Proposal Aims at Consolidation and Drug Pricing
Sammy Chang, Health Policy Researcher January 13, 2020
On January 10, California Governor Gavin Newsom released his 2020-2021 State Budget proposal. While the state budget process will not begin in earnest until after the Governor’s May Revise, the state budget provides a glimpse of likely California health care reforms. The Governor’s January Budget Proposal proposes the following: Proposal Goals Office of Health Care Affordability Increase price and quality transparency Develop cost targets for health care industry Address hospital cost trends by region, with focus on cost increases driven by delivery system consolidation Establish standards for advance evidence-based and …
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