Medi-Cal Hospital Fee Program. Initiative Constitutional Amendment and Statute

Extends indefinitely an existing statute that imposes fees on hospitals to obtain federal matching funds. • Uses fees to fund Medi-Cal health care services, care for uninsured patients, and children’s health coverage. • Requires voter approval to change use of fees or funds. • Permits other amendments or repeal by Legislature with a two-thirds vote. • Declares fee proceeds do not count as revenue toward state spending limit or Proposition 98 funding requirement. • The fiscal effect of this measure is uncertain primarily because it is not known whether the Legislature would have extended the hospital fee absent the measure. • If the Legislature would have extended the hospital fee absent this measure, the measure would likely have relatively little fiscal effect on the state and local governments. • If the Legislature would not have extended the hospital fee absent the measure, the measure could result in state General Fund savings of around $1 billion annually and increased funding for public hospitals in the low hundreds of millions of dollars annually