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Committee advances change to state reimbursement threshold for Robert F. Kennedy Farmworker Medical Plan
Summary
AB 499 would lower the state reimbursement trigger for the RFK Farmworker Medical Plan from $70,000 to $50,000 per claim to help the plan remain solvent while maintaining an existing $3 million annual reimbursement cap.
The Assembly Health Committee on March 25 advanced AB 499, which would change the state reimbursement threshold for the Robert F. Kennedy (RFK) Farmworker Medical Plan so the plan is reimbursed by the state for claims exceeding $50,000, down from $70,000.
Assemblymember Ortega presented the bill and said the RFK plan provides medical benefits to about 6,000 farmworkers and their families, with about 96% of its budget going to medical care and roughly 4% covering administrative overhead. Ortega told the committee the plan had recently depleted reserves to pay for a rare stem cell transplant for a farmworker’s son.
Teresa Romero, president of the United Farm Workers, said the bill “allows farm workers and their employers to continue contributing financially to their own health care and reduce California’s medical costs.” Romero said AB 499 does not change the existing $3,000,000 annual limit on state reimbursements; it only lowers the per-claim trigger that triggers reimbursement from $70,000 to $50,000.
Supporters told the committee the RFK plan has saved the state money and that recent changes in law could increase enrollments under UFW collective bargaining agreements, further strengthening savings. The committee established quorum and moved AB 499 to be due passed to appropriations.
Discussion versus action: The committee recorded the motion and, after quorum was established, formally placed the measure on call and referred it to appropriations.
