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Committee moves AB 499 to lower state reimbursement trigger for RFK Farm Workers Medical Plan
Summary
AB 499 would lower from $70,000 to $50,000 the per‑claim threshold at which the state reimburses the Robert F. Kennedy Farm Workers Medical Plan, a Taft‑Hartley plan serving about 6,000 beneficiaries, witnesses said. Supporters said the change helps solvency without raising the $3,000,000 annual cap.
Assemblymember Ortega presented AB 499, which would reduce the per‑claim reimbursement trigger for the Robert F. Kennedy (RFK) Farm Workers Medical Plan from $70,000 to $50,000. Ortega said the plan serves roughly 6,000 farm workers and their families, that 96 percent of the plan’s budget goes to medical care, and that the plan has historically saved the state about $11 million annually in Medi‑Cal expenditures.
Mercedes Martinez, RFK plan administrator, testified that lowering the threshold would help the plan remain solvent when it incurs very high‑cost claims—she described a recent case that required depleting reserves to pay for a life‑saving stem‑cell transplant. She said the bill would not change the existing $3,000,000 annual reimbursement cap on the state’s liability.
Support came from the United Farm Workers and the California Medical Association; no formal opposition was recorded in committee. Committee members asked technical questions about why the $20,000 reduction was chosen and whether the $3 million annual cap could be exceeded; witnesses said the cap remains in place and the change is intended to allow payment for more middle‑cost cases without increasing annual state exposure.
Action and next steps: The committee moved AB 499 as amended and referred it to the Appropriations Committee. The author requested an aye vote when quorum was present.
