On Sunday, California Governor Arnold Scwharzenegger signed into law a bill that adds a hospital fee that will be used to attract more than a billion dollars in federal money for California hospitals. He also signed a controversial bill that would end the practice of so-called ‘gender premiums’ by insurance companies.

The Governor also vetoed several health care bills, in most cases, calling the individual bill an ‘unfunded mandate.’

One of the bills that was signed by the Governor was Assembly member Dave Jones’ (D-Sacramento) bill, AB 1383, establishes a new hospital fee to help gain additional federal funds for Medi-Cal.

Hospitals throughout the State were split, with those who served a larger percentage supporting the bill, saying it will help improve their revenues in a difficult economy. Hospitals who serve fewer MediCal patients claim the opposite.

Each hospital will now pay a provider fee for each Medi-Cal admission. It is estimated that the law could generate more than $2 billion a year, which would be eligible for enhanced federal matching funds at 62% instead of the customary 50%.

A portion of the money, up to $320 million is earmarked for use by health coverage programs for children, including Healthy Families.

Schwarzenegger, in a signing message, noted that separate legislation is needed to appropriate money for implementing the bill.

Gender Premiums Ended

Assembly Bill 119, which prohibits health insurers from charging differing premiums to men than to women also was signed by the Governor. Also sponsored by Jones, the bill noted that women are charged from 4% to 39% higher premiums, even when comparing policies without maternity coverage.

Bills vetoed include

• Assembly Bill 56 coverage of mammograms;
• AB 57: staffing levels at UC hospitals;
• AB 82: psychotropic medications and dependent children;
• AB 115, which would have expanded Adult Health Coverage; and
• AB 120 which concerned Peer Review in the Healing Arts.