CAHSAH Achieves Two Big Wins for the Industry

CAHSAH is pleased to report on two big advocacy achievements! 

First, is a recent budget action in which the California Legislature voted to approve the Managed Care Organization (MCO) Provider Tax package that provides a $62 million dollar investment in private duty nursing (PDN), which will help improve services for medically fragile pediatric patients.  

 CAHSAH is very grateful to Governor Newsom and the Legislature for their actions to prioritize in-home comprehensive care for California’s medically complex children and allow them to live at home with their families. Currently, over 1,000 families are unable to take their children home from the hospital due to a lack of available private duty nurses. Now, with a commitment to fund private duty nursing, we can help bring these children out of the hospital and ensure they receive the long-term, comprehensive and cost-effective care they need from home. 

Investments in the MCO provider tax will maintain funding for Medi-Cal providers. As stipulated in the budget agreement, a $62 million dollar investment in PDN will be fully funded by January 1, 2026.  This investment will generate a savings of at least $175 million to the state. 

 A longtime champion and advocate for some of California’s most medically vulnerable patients is Senator Caroline Menjivar (D-San Fernando Valley). Senator Menjivar has worked closely with CAHSAH and its PDN provider members to create a funding pathway for PDN in the home. CAHSAH is very appreciative of Senator Menjivar for her leadership on this critical issue.  Due to her steadfast commitment to this important issue, California’s medically complex and vulnerable patient population will now be able to be home with their families while they receive the critical home care they need and deserve. 

Second, Governor Gavin Newsom has signed into law the two Private Attorneys General Act (PAGA) reform measures, both supported by CAHSAH and the California Chamber of Commerce — AB 2288 (Kalra; D-San Jose) and SB 92 (Umberg; D-Santa Ana). PAGA currently allows private attorneys to act as state representatives when an employee has labor issues. There was going to be a ballot initiative to repeal PAGA, but a deal was stuck between organized labor, California's Chamber of Commerce, the business community, and the Legislature so that the ballot initiative will not move forward. The compromise that was reached limits the range of suits eligible for PAGA, increases the employee’s share of the award from 25% to 35%, reduces monetary penalties for employers, and allows an employer under certain circumstances a right to cure an alleged wrongdoing on their part.