WASHINGTON – Today, Congressman David Valadao (CA-22) released the following statement in response to Centers for Medicare & Medicaid Services (CMS) approval of California’s Hospital Quality Assurance Fee Program (HQAF) 9 proposal. Approval of this program will result in a net benefit of $5.9 billion for hospitals across the state.

“I’m happy to see that Centers for Medicare and Medicaid Services (CMS) has approved California’s Hospital Quality Assurance Fee Program (HQAF) 9 proposal,” said Congressman Valadao. “Over the past year, I’ve worked directly with CMS to stress the importance of a timely approval because I know this funding is essential to protecting access to care across our region. This decision will help ensure hospitals—especially in our rural and underserved communities—have the resources they need to keep their doors open. I appreciate CMS for their partnership, and I’ll keep working to strengthen our healthcare system and ensure Central Valley families can access the care they need.”

Background:

California’s Hospital Quality Assurance Fee (HQAF) Program is a federally approved provider fee that allows the state to draw down federal Medicaid matching funds and deliver supplemental Medi-Cal payments to hospitals serving some of California’s most vulnerable patients. The HQAF 9 proposal updates the current funding structure and will provide critical financial support to hospitals facing rising labor, supply, and infrastructure costs, helping them continue providing care across the state. These supplemental payments are especially important in California, where Medi-Cal covers nearly 15 million residents and many hospitals are operating at a financial loss. This approval helps ensure hospitals can continue delivering high-quality care while strengthening access to essential healthcare services for patients. Today, CMS also approved California's state directed payment (SDP) proposal under Medicaid managed SDPs. This announcement provides additional financial support to healthcare providers in the Central Valley and across the state.

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