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League Co-Sponsored Bill Allows Local Agencies to Recoup Greater Share of Medi-Cal Transport Costs

August 22, 2014
A League of California Cities-sponsored bill that would pave the way for $300 to $400 million in federal reimbursements for local agencies is speeding through the Legislature with bipartisan support.
 
AB 2577, authored by Assemblyman Ken Cooley, D-Rancho Cordova, and Assemblyman Richard Pan, D-Sacramento, would allow local agencies (including many municipal fire departments that provide emergency medical transport) to recover a higher rate of reimbursement for ambulance transport. The Assembly unanimously backed the measure; the Senate has taken a pair of floor votes without a single “No” vote cast.
 
Co-sponsored by the League, the California Fire Chiefs Association and the California Professional Firefighters, AB 2577 would allow local agencies to recapture lost reimbursements through the use of an intergovernmental transfer. Under this bill, public agency emergency services providers could seek partial reimbursement from the federal government for the cost of providing ground emergency medical transport. For California, this will amount to an additional $300 to $400 million statewide.
 
Currently, Medi-Cal reimbursement rates do not fully cover the typical emergency medical transportation costs for low-income residents, leaving cities to foot a growing share of the expense with General Fund dollars.


 
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