CA AB180

State Department of Health Care Services must establish a stakeholder process by March 1, 2019 to develop guidance on what constitutes prohibited incentive payments for federally qualified health centers (FQHCs) and rural health clinics (RHCs).

Stakeholder process must include at least two meetings with representatives from FQHCs, RHCs, public hospitals, health plans, and at least two FQHC/RHC representatives from rural areas.

Department must issue final guidance by July 1, 2019 and publish it on its website; guidance applies only to FQHC and RHC reconciliations on and after the issuance date.

Prior to July 1, 2019, quality improvement incentive payments including risk pools, withholds, and bonuses are excluded from reconciliation calculations.

Department may seek federal approvals and must adopt formal regulations by July 1, 2021; bill takes effect immediately as an urgency statute.