06/05/2018

Bill that would regulate provider rates won't advance in 2018


Assembly Bill 3087 (Kalra, D-San Jose) was held in the Assembly Appropriations Committee May 25 and will not move forward in the current legislative session.

As CDA first reported in April, AB 3087 would have created a new government commission of appointed members to regulate and cap commercial payment rates for health care providers.

The Assembly heard the strong concerns raised by CDA and a large coalition of health care providers, including through direct member advocacy and grassroots efforts. CDA President Natasha Lee, DDS, in a statement said the bill “would only speed us toward intensifying consolidation of the health care industry, turning care into a one-size-fits-all assembly-line commodity” and could “limit the number of health care providers willing to practice in the state.”

The bill’s failure to advance allows room for other discussions about health care reform, market stabilization and cost containment in and around the Legislature. CDA will continue to engage in these conversations and will keep members updated about any developments.



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CDA last week became aware of a bill that seeks to regulate and cap provider rates to a percentage of Medicare. Assembly Bill 3087 raises significant concerns about fracturing the market and undermining the ability of providers to balance their patient mix. CDA joins a number of other major provider groups representing a wide range of California health care professionals in voicing deep concerns about AB 3087 and issued a statement from CDA President Natasha Lee, DDS.

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