(a) The department shall submit to the Legislature, as part of the 2024-25 Governor’s Budget, a plan for targeted increases to Medi-Cal payments or other investments as described in subdivision (c) of Section 14105.200. The targeted increases or other investments shall be designed to advance access, quality, and equity for Medi-Cal beneficiaries and promote provider participation in the Medi-Cal program in the following domains, pursuant to criteria established by the department, which may account for, and be inclusive of, the exemption of applicable services from payment reductions pursuant to Section 14105.192:

(1) (A) Primary care services, including those provided by physicians or nonphysician health professionals, as defined in Section 51170.5 of Title 22 of the California Code of Regulations.

(B) Obstetric care services, and doula services as described in Section 14132.24.

(C) Outpatient mental health services that are not the financial responsibility of county mental health plans operating pursuant to Chapter 8.9 (commencing with Section 14700).

(2) Specialty care services.

(3) Community or hospital outpatient procedures and services.

(4) Family planning services and women’s health providers.

(5) Hospital-based emergency and emergency physician services.

(6) Ground emergency transport services.

(7) Designated public hospitals, as defined in subdivision (f) of Section 14184.101.

(8) Behavioral health care for beneficiaries in hospital and institutional long-term care settings.

(9) Investments to maintain and grow the health care workforce.

(b) (1) The payments implemented pursuant to subdivision (a) shall be supported by the managed care organization provider tax revenue, pursuant to Article 7.1 (commencing with Section 14199.80), or other state funds appropriated to the department as the state share for this purpose, including, but not limited to, funds transferred to the Medi-Cal Provider Payment Reserve Fund in accordance with Sections 14105.200 and 14199.82 and, for applicable services as determined by the department, to the Healthcare Treatment Fund in accordance with subdivision (a) of § 30130.55 of the Revenue and Taxation Code.

(2) Notwithstanding any other law, increases to fee-for-service reimbursement rates and managed care directed payments that are made pursuant to subdivision (a) constitute increases in accordance with subdivision (a) of § 30130.55 of the Revenue and Taxation Code, and all other fee-for-service supplemental payments and managed care directed payments for services identified in subdivision (a), as applicable, that are made pursuant to subdivision (a) of § 30130.55 of the Revenue and Taxation Code shall be discontinued on the date the payments implemented pursuant to subdivisions (a) are effective.

(Added by Stats. 2023, Ch. 42, Sec. 141. (AB 118) Effective July 10, 2023.)