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AB-381 Medi-Cal: provider reimbursement.(2007-2008)

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Assembly Bill No. 381
CHAPTER 265

An act to amend Section 14045 of the Welfare and Institutions Code, relating to Medi-Cal.

[ Approved by Governor  October 05, 2007. Filed with Secretary of State  October 05, 2007. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 381, Galgiani. Medi-Cal: provider reimbursement.
Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income persons receive health care benefits.
Existing law, subject to certain exceptions, prohibits a provider under the Medi-Cal program from submitting a reimbursement request to the Medi-Cal program that contains a beneficiary’s social security number in order to receive payment if the department has issued that beneficiary a Medi-Cal beneficiary identification card containing a beneficiary number that includes the issuance date.
This bill would delete the limitation on this prohibition to those instances in which the request is submitted in order to receive payment, but would exempt the submission of a request by a provider for beneficiary eligibility from the prohibition.
Existing law provides that the above prohibition does not apply to a licensed hospital, long-term health care facility, a primary care clinic, or emergency medical transportation services.
This bill would, instead, exempt from this prohibition a licensed hospital, long-term health care facility, a primary care clinic, emergency medical transportation services, or a hospital-based physician, only if the providers of these services have made a good faith effort to obtain a recipient’s beneficiary identification card number. It would, however, terminate this exemption when the department establishes an automated system whereby a provider can access a beneficiary identification card number for submitting reimbursement requests.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 14045 of the Welfare and Institutions Code is amended to read:

14045.
 (a) A provider shall not submit a reimbursement request to the Medi-Cal program containing a beneficiary’s social security number if the department has issued that beneficiary a Medi-Cal beneficiary identification card containing a beneficiary number with the issuance date included in that number.
(b) This section shall not apply to the submission of a request by a provider for beneficiary eligibility.
(c) In order to reduce medical fraud and the black market for stolen social security cards, the State Department of Health Care Services may establish an automated HIPAA-compliant system using HIPAA transactions whereby all providers can access a beneficiary’s identification card number for submitting reimbursement requests.
(d) When the provider makes a good faith effort to obtain a recipient’s beneficiary identification card number, this section shall not apply tothe following, or services provided by the following provider types, until the time that the department is able to establish a system described in subdivision (c):
(1) A hospital licensed pursuant to Chapter 2 (commencing with Section 1250) of Division 2 of the Health and Safety Code.
(2) A long-term health care facility, as defined in Section 1418 of the Health and Safety Code.
(3) A primary care clinic that is licensed pursuant to subdivision (a) of Section 1204 of the Health and Safety Code.
(4) Emergency medical transportation services.
(5) A hospital-based physician.