In March 2011, the California legislature passed Assembly Bill 97 (AB 97), which reduces reimbursement rates to providers for Medi-Cal and Healthy Families Program. In addition, AB 97 implements new copays for some services, raises existing member copay amounts for others and reduces or eliminates certain benefits. The state announced that by passing AB 97 it intends to save approximately $1.7 billion in expenditures on these state-funded programs.
Implementation of AB 97 required approval by the Centers for Medicare & Medicaid Services (CMS). CMS recently approved the AB 97 rate reductions. We want to alert our valued providers that we will be contacting you, by mail, soon with updates to our fee schedules based on the information we have received from the state.
If CMS also approves the AB 97 copays and benefit limitations, Anthem Blue Cross will respond with appropriate changes to copays and benefit limitations for our members. Please watch for additional communications on the effect of AB 97.
Thank you for your patience as we implement the necessary requirements.