PROP
52

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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