BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1469|
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                                 THIRD READING


          Bill No:  SB 1469
          Author:   Cedillo (D)
          Amended:  5/26/06
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 4/19/06
          AYES:  Ortiz, Runner, Aanestad, Alquist, Chesbro, Cox,  
            Figueroa, Kuehl, Maldonado

           SENATE PUBLIC SAFETY COMMITTEE  :  5-0, 5/2/06
          AYES:  Migden, Cedillo, Margett, Perata, Romero
          NO VOTE RECORDED:  Poochigian

           SENATE APPROPRIATIONS COMMITTEE  :  8-4, 5/25/06
          AYES:  Murray, Alarcon, Alquist, Escutia, Florez, Ortiz,  
            Romero, Torlakson
          NOES:  Aanestad, Ashburn, Battin, Dutton
          NO VOTE RECORDED:  Poochigian


           SUBJECT  :    Medi-Cal:  eligibility:  juvenile offenders

           SOURCE  :     Author


           DIGEST  :    This bill requires, beginning May 1, 2007, the  
          Department of Corrections and Rehabilitation, Division of  
          Juvenile Facilities to notify county welfare departments  
          about the release of a ward so that eligibility for  
          Medi-Cal can be determined.  

           ANALYSIS  :    
                                                           CONTINUED





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          Existing Federal law:  

          1.Establishes the Medicaid program to provide comprehensive  
            health benefits to low-income persons.  

          2.Provides that Medicaid benefits generally cannot be paid  
            for incarcerated individuals. 

          3.Allows incarcerated individuals to retain their Medicaid  
            eligibility.  

          Existing State law:  
          1.Establishes the Medi-Cal program, administered by the  
            Department of Health Services (DHS) to provide health  
            care benefits to qualified low-income individuals.  

          2.Defines health care benefits eligible under the Medi-cal  
            programs.

          3.Excludes from the definition of health care benefits,  
            care or services for any individual who is an inmate of  
            an institution (except as a patient in a medical  
            institution).  

          This bill:  

          1.Commencing May 1, 2007, directs the Department of  
            Corrections and Rehabilitation, Division of Juvenile  
            Facilities (division) and county juvenile detention  
            facilities (county) to provide the appropriate county  
            welfare department with the ward's name, release date and  
            sufficient information for the county welfare department  
            to begin the process of determining the ward's  
            eligibility for Medi-Cal, including, if the ward is a  
            minor, contact information for the ward's parent or  
            guardian, if available.

          2.Mandates the division and county to notify the ward's  
            parents or guardian so that they may have the option of  
            opting out of the Medi-Cal eligibility determination.  

          3.Requires the county welfare director to expedite the  
            review of the enrollment application.  







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          4.Directs the county welfare director to forward the  
            application to the appropriate entity for Healthy  
            Families eligibility or other appropriate health coverage  
            program, if the ward does not meet the requirements for  
            Medi-Cal.  

          5.Requires the county welfare department to issue  
            appropriate documentation to obtain necessary medical  
            care for a released ward who meets eligibility  
            requirements for Medi-Cal.  

          6.Requires the division and DHS in consultation with the  
            County Welfare Directors Association, Chief Probation  
            Officers of California and parole services of the  
            division, to establish protocols and procedures to  
            implement this bill.  

          7.Allows DHS to implement this bill though all-county  
            letters or similar methods without adopting regulations.   


          8.Requires DHS to seek any federal waivers necessary for  
            the implementation of this bill.  

          9.Establishes a method for paying any mandates that this  
            bill creates.  

           Background
           
          Medi-Cal eligibility:

          Under Medicaid law, states do not receive federal matching  
          funds for services provided to individuals in jail.   
          However, federal law does not require states to terminate  
          inmates' eligibility.  Inmates may remain enrolled in  
          Medicaid even though services received while in jail are  
          not covered.  Accordingly, someone who had a Medicaid card  
          when jailed may be able to use it to obtain needed services  
          and medication immediately after release.  

          Under federal rules, Medicaid eligibility should be  
          reinstated upon release unless the person is no longer  
          eligible.  Before ending eligibility, states must determine  







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          the potential for qualifying under all the state's  
          eligibility categories.  Regrettably, this re-determination  
          often does not occur.  

          Even inmates who keep their Medicaid eligibility may lose  
          Medicaid coverage unnecessarily because of procedures in  
          correctional facilities.  Many individuals will be  
          incarcerated for so long that they will lose their Medicaid  
          benefits after the state's customary re-determination of  
          eligibility is conducted (annually for California).   
          Something as simple as the loss of a Medicaid card  
          following arrest can make it impossible to obtain mental  
          health services from Medicaid providers upon release.   
          Cards are often lost because jails take possession of all  
          personal property when booking a person.  In many  
          jurisdictions, this property is destroyed if it is not  
          claimed within a certain time.  Inmates cannot claim the  
          property themselves and if they have no one to do it for  
          them, their Medicaid card is destroyed.  

          Federal view:

          As part of a federal effort to reduce homelessness, the  
          Centers for Medicare and Medicaid Services has sent a  
          letter encouraging states to suspend and not terminate  
          Medicaid benefits while a person is in a public  
          institution.  The letter points out the difference between  
          the prohibitions on receiving benefits versus maintaining  
          eligibility while an eligible individual is in an  
          institution.  The letter also encourages state Medicaid  
          agencies to work with corrections officials.  

           Related legislation

           SB 1616 (Kuehl) - requires the division to work with the  
          Social Security Administration and DHS to ensure that  
          disabled wards are enrolled in Medi-Cal and that their  
          disability benefits are available to them when they are  
          released from a state institution.  

          AB 1945 (Coto) - requires that a juvenile detention  
          facility determine if an eligible minor being released is  
          enrolled in need-based health insurance programs. 








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          AB 2004 (Yee) - prohibits the use of inmate status to  
          terminate the eligibility of a minor under the Medi-Cal  
          program, require DHS to suspend rather than terminate  
          eligibility and ensure that eligibility was reinstated upon  
          release.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2006-07     2007-08   2008-09        
            Fund  
          State mandated local
              Program                                       unknown,  
          significant costs   General
          Medi-Cal benefits                                 unknown,  
          significant costs   General
          Implementation protocol            $80            General

           SUPPORT  :   (Verified  5/26/06)

          Adolescent Health Working Group
          Books Not Bars
          California Coalition for Youth
          California Commission on the Status of Women
          California Medical Association
          California Public Defenders Association
          City of Los Angeles
          City of Santa Monica
          County Alcohol and Drug Program Administrators Association  
          of California
          Girl Scout Councils of California
          Juvenile Court Judges of California
          Juvenile Justice Commission, County of Santa Clara
          National Association of Social Workers, California Chapter
          Stanford University Medical Center
          Stanford University School of Medicine, Department of  
          Pediatrics


           ARGUMENTS IN SUPPORT  :    The County Alcohol and Drug  







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          Program Administrators Association of California strongly  
          support the bill.  They believe that this bill will provide  
          Medi-Cal and other health benefits for eligible adolescents  
          immediately upon their release from juvenile detention  
          facilities.  They believe that this bill will be a valuable  
          effort to help trouble youth who are trying to put their  
          lives together after incarceration.

          The National Association of Social Workers supports the  
          bill because it will help provide youth access to adequate  
          health care, member health treatment and substance abuse  
          treatment so that they have the opportunity to stay out of  
          the juvenile detention system.



          CTW:nl  5/27/06   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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