Assembly Bill 85
Redirection of 1991 State Health Realignment
With California electing to implement a state-run Medicaid Expansion afforded by the Affordable Care Act, the State anticipates that counties’ costs and responsibilities for the health care services for the indigent population will decrease as much of this population becomes eligible for coverage through Medi-Cal or the Exchange. On June 27, 2013, Governor Brown signed into law AB 85 that provides a mechanism for the State to redirect State health realignment funding to fund social service programs.
The redirected amount will be determined according to respective formula options for California’s twelve public hospital system counties, thirty-four County Medical Services Program (CMSP) counties, and the remaining twelve counties (Article 13 counties). The formula options were developed in consultation with the counties and DHCS to ensure continued viability of the county safety net.
For CMSP counties, AB85 outlines that 60% of health realignment that would have otherwise been received will be redirected, while the remaining two county groups will have an option to either have 60% of health realignment redirected, or, to use a formula-based approach that takes into account a county’s cost and revenue experience, and redirect 80% (70% in FY 13-14) of the savings realized by the county
AB 85 set forth a specific formula-based approach for the following groups of counties:
Article 13 Counties
Fresno, Merced, Orange, Placer, Sacramento, San Diego, San Luis Obispo, Santa Barbara, Santa Cruz, Stanislaus, Tulare and Yolo.
Public Hospital Counties:
Alameda, Contra Costa, Kern, Monterey, Riverside, San Bernardino, San Francisco, San Joaquin, San Mateo, Santa Clara, and Ventura. Los Angeles County, although a public hospital county, has a distinct formula-based approach.
For AB 85 related questions, comments and concerns, please email us at
NOTE: Some links on this page are documents in Adobe Acrobat Portable Document Format (PDF). PDF documents require Adobe Reader. If you need to install or upgrade to the latest version, click the “Download Free Readers”.