BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 369|
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                                 THIRD READING


          Bill No:  AB 369
          Author:   Yamada (D), et al
          Amended:  8/24/09 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  11-0, 7/08/09
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox,  
            DeSaulnier, Leno, Maldonado, Negrete McLeod, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  12-0, 8/27/09
          AYES:  Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,  
            Price, Runner, Walters, Wyland, Yee
          NO VOTE RECORDED:  Wolk

           ASSEMBLY FLOOR  :  78-0, 6/3/09 - See last page for vote


           SUBJECT  :    Adult day health care centers

           SOURCE  :     California Association for Adult Day Services


           DIGEST  :    This bill exempts two veterans facilities (one  
          in Ventura and one in Lancaster) from the moratorium  
          prohibiting the enrollment of adult day health care centers  
          into the Medi-Cal program.

           ANALYSIS  :    

          Existing law:

          1. Establishes Adult Day Health Care (ADHC) services as a  
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             Medi-Cal benefit for Medi-Cal beneficiaries who  
             generally meet certain criteria, including being 18  
             years of age or older, having a request for ADHC  
             services from a health care provider, having one or more  
             chronic or postacute medical, cognitive, or mental  
             health conditions, and having functional impairments in  
             two or more activities of daily living, instrumental  
             activities of daily living, or one or more of each, and  
             requires assistance or supervision in performing these  
             activities.

          2. Authorizes Department of Health Care Services (DHCS) to  
             implement a one-year moratorium on the certification and  
             enrollment into the Medi-Cal program of new ADHC centers  
             on a statewide basis or within a geographic area,  
             subject to certain limitations.

          3. Permits the director of DHCS to extend this moratorium,  
             if necessary, to coincide with the implementation date  
             of the ADHC centers waiver.

          4. Exempts certain applicants from this moratorium.

          This bill exempts from the ADHC moratorium two veterans'  
          facilities (one in Ventura and one in Lancaster) run by the  
          California Department of Veterans Affairs (CDVA).

           Background
           
          ADHC is an organized day program of therapeutic, social and  
          health activities and services provided to elderly persons  
          or other persons with physical or mental impairments for  
          the purpose of restoring or maintaining optimal capacity  
          for self-care.  Under federal law, ADHC services are an  
          "optional benefit" for states to provide.  The Adult Day  
          Health Medi-Cal Law establishes adult day health care  
          services as a Medi-Cal benefit for Medi-Cal beneficiaries  
          who meet certain criteria.  Specifically, ADHC services are  
          provided to Medi-Cal beneficiaries who have medical or  
          psychiatric impairments who have a written request for ADHC  
          services from a physician, a multi-disciplinary team  
          assessment, a signed participation agreement, and approval  
          from DHCS.  ADHC centers must provide rehabilitation  
          services (physical, occupational and speech therapy  







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          services), medical services supervised by the participant's  
          personal physician or staff physician, nursing service,  
          psychiatric and psychological services, medical social  
          services, planned recreational and social activities, and  
          non-medical transportation (if necessary) to and from  
          participants' homes.  There are over 300 ADHC centers that  
          are Medi-Cal providers throughout California.  Expenditures  
          in 2008-09 for ADHC services were $409 million ($204.7  
          million General Fund [GF]).  The average number of monthly  
          users of ADHC services in 2008-09 was 36,586.

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

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                2009-10     2010-11     
           2011-12   Fund
           
          CDVA budget offset       $0        $135      $120General
          (savings)

          Medi-Cal benefits        $0        $105      $120 General/
          (costs)             $0        $135      $120      Federal

           SUPPORT  :   (Verified  8/27/09)

          California Association for Adult Day Services (source)
          Aging Services of California
          California Alliance for Retired Americans
          California Commission on Aging
          Congress of California Seniors
          Yolo Adult Day Health Center

           OPPOSITION  :    (Verified  8/27/09)

          Department of Finance

           ARGUMENTS IN SUPPORT  :    The California Association for  
          Adult Day Services (CAADS) argues that ADHC is a  
          cornerstone in the long-term care continuum and will play a  
          vital role within the campuses operated by CDVA.  CAADS  







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          argues that the ability of these two veteran-focused ADHC  
          centers to pursue their Medi-Cal certification is critical  
          to their planned operations.  CAADS argues this bill will  
          conserve limited operating funds by bringing in federal  
          dollars for veterans eligible for Medi-Cal.  CAADS points  
          out that if CDVA provides services without Medi-Cal  
          certification, all expenses for Medi-Cal-eligible veterans  
          will come from CDVA's operating funds, leaving federal  
          dollars on the table.  CAADS concludes that in the current  
          budget environment, it makes sense to maximize all sources  
          of non-state GF.

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Bass
          NO VOTE RECORDED:  Block, Yamada


          CTW:ABdo  8/28/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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