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Brown Signs Two Bills

Governor Brown has signed two bills into law. SB 335 (Hernandez) extends a hospital fee to increase funding for Medi-Cal through 2013 and ABX 1 21 (Blumenfeld) extends a fee on Medi-Cal managed care plans for another year. SB 335 is estimated to generate $2.2B in fee revenue paid by private hospitals, $320M of which will be used for children’s coverage. The remaining $1.9B will be matched by federal dollars, generating approximately $3.7B in new payments to private hospitals. ABX1 21 is estimated to raise $207M in 2011-2012. Approximately half will be used to help fill a $130M funding gap in the Healthy Families Program caused by state budget cuts. Read more about SB 335 and ABX1 21 here.