Overview

September 17, 2024

Governor Newsom Vetoes AB 2428, What Now?

First of all, thank you very much for your support of AB 2428. Be assured that your support for this bill and the CBAS rate increase was key to our budget win. With your help, we successfully elevated the urgency of raising CBAS rates, attracted a Senate champion in the person of Senator Menjivar, and were given a seat at the witness table during budget hearings where we were able to discuss AB 2428 and rates. 

Despite this tremendous grassroots support and CAADS lobbying team's almost year-long efforts, we are sorry to report that Governor Newsom vetoed AB 2428 (L. Calderon) on Saturday, September 14, 2024. You can read the veto message below. We are deeply disappointed, though not surprised, because of recent meetings we held with the Dept. of Health Care Services. 

During these meetings, we learned that a major concern, not expressed in the veto message, is the ongoing state workload related to requirements that the federal government imposes on "directed payments" to providers within managed care.

Ironically, the department is already engaged in such a workload because of a provision in the Health Trailer Bill that implements a directed payment for CBAS related to funding in the state budget. However, this language expires in three years, compared to the permanent policy to establish a rate "floor" in AB 2428. This was the crux of the veto.

The good news in the veto message is the Governor stating plainly in writing that he wants DHCS "to work with managed care plans to modify their contracts to ensure that CBAS providers caring for older and disabled Californians are receiving these rate increases." CAADS has been and will continue working with DHCS to ensure this happens.

The situation is confusing. There is indeed a rate increase in the budget for centers that are at the current $76.27 rate, but it may not come to pass as budgeted and scheduled on January 1, 2025 if Prop. 35 passes.

Prop. 35 would negate the rate increase, but CAADS will be back at it in January getting the rate increase restored.

August 26, 2024

Letter from CAADS to Governor Newsom Urging Signature on AB 2428

Dear Governor Newsom:

The California Association of Adult Day Services (CAADS) is pleased to sponsor AB 2428 by Assembly Member Lisa Calderon, which would ensure that rate increases agreed upon by the Administration and Legislature for Community-Based Adult Services (CBAS) providers are passed through by managed care plans who contract with these providers for services.

Across the state, an insufficient number of CBAS programs offer medically necessary services...

JULY 1, 2024

Statement on the State Budget Agreement on Managed Care Organization Tax (MCO) Community Based Adult Services (CBAS) Rate Increase Approved but Tentative for 1/1/2025

CAADS’ multiyear effort to obtain a long-overdue rate increase for CBAS providers finally succeeded this year when budget negotiations over the MCO Tax expanded the breadth of providers eligible to access MCO tax revenue.

Campaign Focused Clips from the Past