Medi-Cal: unrecovered payments: interest rate.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill modifies how interest is calculated on unrecovered Medi-Cal payments. Currently, interest is assessed at a rate tied to investment returns or 7% per annum, starting 60 days after a statement of account is issued. The bill allows the Department of Health Care Services to waive this interest if the overpayment occurred more than four years prior to the statement of account, considering factors like the provider’s financial stability, the cause of the overpayment, and the potential impact on federal funding. The department can still pursue other remedies if a provider defaults on a repayment agreement.
Key provisions
- Allows the Department of Health Care Services to waive interest on unrecovered Medi-Cal overpayments if the overpayment occurred more than four years before the statement of account.
- Specifies factors the department must consider when waiving interest, including provider financial solvency and the cause of the overpayment.
- Preserves the department’s ability to pursue legal remedies if a provider defaults on a repayment agreement.
- Establishes a minimum interest rate of 7% per annum if interest is not waived.
- Defines the timing for when interest begins to accrue on unrecovered overpayments.
- Allows the department to implement and interpret the provisions through various communication methods without formal regulatory action.
- Provides a process for reviewing and potentially modifying the director’s final decision.
- Addresses interest accrual for durable medical equipment and incontinence supplies.
Bill text
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Sponsors
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1 on record
Primary sponsor
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