Welcome to the California Department of Health Care Services 

Quality Assurance Fee (QAF)

The Quality Assurance Fee (QAF) collections are being administered by the QAF Program in the Third Party Liability and Recovery Division. The QAF is a fee that is imposed on skilled nursing facilities and designated intermediate care facilities as outlined in Assembly Bill (AB) 1629, Health and Safety Code, Sections 1324 through 1324.14, and Sections 1324.20 through 1324.30. The purpose of this program is to provide additional reimbursement for, and to support quality improvement efforts in, licensed skilled nursing facilities. 

Regulations:
Health and Safety Code, Section 1324 through 1324.14 and 1324.20 through 1324.30 (Not DHCS)

The skilled nursing facility fee is part of AB 1629 which enacted the Skilled Nursing Facility Quality Assurance Fee (QAF) Program and the Medi-Cal Long Term Care Reimbursement Act. The QAF fees are required for Freestanding Skilled Nursing Facility Level-Bs (FS/NF-B) and Freestanding Skilled Adult Subacute Nursing Facilities (FSSA/NF-B), minus some exceptions. Please see Skilled Nursing Facilities page for more information.

Click on link below to go to Skilled Nursing Facility page. 

Skilled Nursing Facilities (SNF) 

DESIGNATED INTERMEDIATE CARE FACILITY-DEVELOPMENTALLY DISABLED (DICF-DD)

The Designated Intermediate Care Facility – Developmentally Disabled (DICF-DD) program is governed by the California Health and Safety Code, Sections 1324 through 1324.14. California Department of Health Care Services is required to impose a quality assurance fee on the entire gross receipts for each Designated Intermediate Care Facility for the Developmentally Disabled, Habilitative, and Nursing. Please see Designated Intermediate Care Facility - Developmentally Disabled page for more information.

Effective October 1, 2011, the fee imposed on a facility’s gross receipts during each calendar quarter increased from 5.5 percent to 6 percent in accordance with Title 42, United States Code Section 1396b(w)(4)(C)(ii).

The updated invoices for the 2nd, 3rd, and 4th Quarters can be found using the links below. Please be advised that facilities may continue to pay the fee at 5.5 percent until the reimbursement rate has been adjusted, at which time supplemental payments will need to be made. 

The Department of Health Care Services recognizes that day and transportation services are being paid retroactively at 5.5%, while quality assurance fees for all other services are being paid at 6%.  For ease of calculations, the ICF-DD invoices have been updated.  Please use these invoices when submitting your regular quality assurance fees and submit a copy of your ICF Supplemental Services Summary Claim form when submitting your quality assurance fees that correlate with your day programs and transportation revenue.

Click on link below to go to Designated Intermediate Care Facility – Developmentally Disabled page.     

Designated Intermediate Care Facility-Developmentally Disabled (DICF-DD)

HOSPITAL QUALITY ASSURANCE FEE PROGRAM

Hospital Quality Assurance Fee Program imposes a Quality Assurance Fee (QAF) on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit as mandated by current and past Assembly and Senate Bills. Please see Hospital Quality Assurance Fee Program page for more information.

Click on link below to go to Hospital Quality Assurance Fee Program page. 

HOSPITAL QUALITY ASSURANCE FEE PROGRAM (QAF)_______________________________________________________________________________________________________________________________________________________________________

Any questions about the QAF payments should be directed to

Department of Health Care Services
Third Party Liability & Recovery Division
Quality Assurance Fee Program - MS 4720
P.O. Box 997425
Sacramento, CA  95889-7425
(916) 650-0583 Telephone
(916) 440-5671 Fax