An act to amend Section 307.5 of the Welfare and Institutions Code, relating to juveniles. 14126.024 of the Welfare and Institutions Code, relating to Medi-Cal.
Summary
AB 835 makes two changes to the Welfare and Institutions Code. Its main substantive provision revises the Medi-Cal Workforce and Quality Incentive Program for skilled nursing facilities by removing the requirement that a facility be a network provider in order to receive performance-based directed payments. The bill also directs that, for purposes of retroactive payments tied to federal directed-payment rules, payments be calculated based on the total number of days a facility provided services to Medi-Cal beneficiaries beginning July 9, 2024, even if the facility was not in a managed care network.
The bill also contains a separate juvenile dependency section that makes technical, nonsubstantive changes to existing law governing how peace officers may take minors into temporary custody and refer them to community service programs for abused or neglected children. That portion does not appear to change policy, only wording and organization.
Impact
AB 835 would amend Welfare and Institutions Code Section 14126.024 to broaden eligibility for Medi-Cal skilled nursing facility directed payments under the Workforce and Quality Incentive Program. By eliminating the network-provider limitation, the bill could allow more skilled nursing facilities serving Medi-Cal managed care enrollees to qualify for incentive payments, subject to federal approval, federal financial participation, and the department’s implementation of the program. It also requires retroactive payment calculations for services provided on or after July 9, 2024, and preserves existing requirements that the payments be actuarially sound, supplemental to other payments, and tied to performance metrics and workforce measures. The juvenile dependency amendment in Section 307.5 would not materially alter state law.
Sentiment
The available legislative history suggests generally favorable treatment of the bill, at least at the committee level. The bill received a 16-0 do pass vote in committee, indicating no recorded opposition in that setting. The text and digest frame the Medi-Cal change as a targeted adjustment to payment eligibility rather than a broad policy overhaul, and the juvenile provision is described as technical and nonsubstantive.
Contention
The main substantive issue is the expansion of directed-payment eligibility beyond network providers. Supporters would likely view this as a way to ensure more skilled nursing facilities are compensated for serving Medi-Cal beneficiaries and to make the retroactive payment process consistent with federal directed-payment rules. Potential concerns could come from Medi-Cal managed care plans, budget watchers, or stakeholders worried about cost, administrative complexity, or whether non-network facilities should receive the same incentive payments as contracted providers. The bill’s reliance on federal approvals and federal financial participation also means implementation depends on outside regulatory conditions, which could be a point of practical concern.