Summary of California Assembly Bill 85

June 28, 2013

Summary of AB 85: The Budget Trailer Bill Governing County Health Realignment

This bill transfers realignment  funds from county health to social services with a 5% CalWorks increase in aid payments on March 1, 2014. It reduces county health realignment funds by an average of 60% beginning in January 1, 2014 in light of the Medi-Cal expansion for Medically Indigent Adults and parents that begins on that date. Individual counties have a choice: 1) accept the reduction or 2) show that a lesser reduction would be appropriate, based on the cost experience of the uninsured programs in their counties using a formula developed by the state and the counties.  This is a one-time choice and counties are stuck with the choice they will make in the next several months. The transfer is capped for 2013-14 at $300 million for the first half year of transition and grows from there.

The legislation sets up a process by which county health systems would receive most (75%) of the default enrollment (the newly eligible patients who make no selection of plan or provider) in their counties. It provides for higher reimbursement from managed care plans for services to the new eligibility categories.


Download ITUP’s summary and commentary on AB 85 here: [download id=”699″ format=”1″].