Subsidy for UC Health?

A bill sent to the governor would create a $25/hour minimum wage for health care workers. According to a news report in the Sacramento Bee, one byproduct of the bill, if signed by the governor, would be a subsidy payment to UC Health: 

Hundreds of thousands of health care workers in California are likely to secure a new minimum wage of $25 an hour as the Legislature successfully sent the bill Thursday night to Gov. Gavin Newsom’s desk. One caveat, though, is workers would have to wait between three and 10 years to see the full wage. Senate Bill 525, introduced by Los Angeles Democratic Sen. Maria Elena Durazo and backed by unions, would ensure a minimum wage of $25 for a wide variety of employees at covered health care facilities. The wage floor applies to direct patient care providers, such as nurses, physicians and medical residents, but also to workers in support positions, such as janitors, housekeepers, food service workers, medical billing personnel and gift shop clerks...

An analysis from the Assembly’s appropriations committee estimated it would cost the state at least $970 million a year to raise wages for all affected state employees. Analysts caution that the state could also incur billions of dollars in increases to Medi-Cal provider reimbursement rates. The state isn’t required to increase provider rates to keep up with state-mandated changes, except for certain long-term care facilities. But the Department of Health Care Services said that rate increases would likely be necessary to maintain patient access to providers, especially given that the Medi-Cal program covers approximately a third of Californians. The state would also need to pay an “unknown, but definitely significant” sum to increase wages for University of California health system employees.

Full story at https://www.sacbee.com/news/politics-government/capitol-alert/article279229709.html.