CA-New Law Could Give Public Hospitals Higher MediCal Reimbursement

California Governor, Jerry Brown (D), signed into law Assembly Bill 113 on April 13, 2011. The law will allow the state's 48 nondesignated public hospitals (NDPHs) to raise $33 million in funds for the state's Medicaid program (MediCal) through intergovernmental transfers (IGTs). Final implementation is dependent on approval from the Centers for Medicare & Medicaid Services. Under the IGT program, public entities would voluntarily transfer funds to the state for the purpose of drawing down federal funds to make supplemental Medi-Cal payments to district hospitals. The IGT program is aimed at providing NDPH supplemental payments for inpatient Medi-Cal fee-for-service (FFS).