Under the plan, hospitals agree to pay up to four percent of revenue to help cover the uninsured. But most of them will get it back- plus a little extra. That’s because the fee would help the state to get federal matching money; Money that would go toward the state’s low-income healthcare program: Medi-Cal. Association spokeswoman Jan Emerson:
“We want to make sure that as long as hospitals are paying the fee, that the money is coming back to the hospitals and it’s resulting in additional revenues to the hospitals.”
Emerson says their deal with Schwarzenegger requires the fee be put into a special account, and includes an annual increase in Medi-Cal reimbursement rates. And they’d secure those protections by putting them on the ballot next year. The plan also requires federal approval. Doctors and business groups remain opposed to the Governor’s proposal as legislative session winds down.