CA SB1258

Authorizes the Department of Health Care Services to waive interest on unrecovered Medi-Cal overpayments if the overpayment occurred 4 or more years before the initial demand for repayment, as part of a repayment agreement with the provider.

Requires the department to consider five specific factors when deciding whether to waive interest, including the provider's importance to the local health care safety net, fiscal solvency impact, repayment ability, whether departmental error caused the overpayment, and federal funding implications.

Maintains existing interest rates on unrecovered overpayments at the monthly average Surplus Money Investment Fund rate or 7% simple interest annually, whichever is higher, commencing 60 days after issuance of the first demand for repayment.

Preserves existing provisions allowing providers who prevail in appeals to receive interest on recovered disallowed payments at the same rate, and maintains different interest calculation rules for durable medical equipment and incontinence supply providers.