California Department of Healthcare Services

CALIFORNIA BRIDGE TO REFORM DEMONSTRATION AMENDMENT APPROVAL
The Department of Health Care Services (DHCS) is pleased to announce that the federal Centers for Medicare & Medicaid Services (CMS) has approved, effective June 28, 2012, the state’s request to amend the Section 1115 “Bridge to Reform” waiver to:

• Roll over authorized but unexpended Health Care Coverage Initiative funding to the Safety Net Care Uncompensated Care Pool, which is consistent with the budget action that assumes the state and designated public hospitals will use prior year waiver funds to access additional federal funding.  This action enables the state to achieve General Fund saving of $100 million in fiscal year (FY) 2012-13 and $9 million in FY 2013-14.

• Establish an HIV Incentive Transition Program within the existing Delivery System Reform Incentive Pool for designated public hospitals to support efforts to transition individuals into the Low Income Health Program.  

• Revise the waiver budget neutrality to more accurately reflect the spending under the demonstration project.

• Approve several technical corrections to the waiver special terms and conditions (STCs) that define the nature, character, and extent of federal involvement in this demonstration project. DHCS is currently reviewing the revised STCs and will soon make them available on the DHCS website.

This approval is great news for California, as it helps support the state’s Medicaid early expansion efforts and provides needed relief to the state budget.