BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 369| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 369 Page 2 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 AB 369 Page 3 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 AB 369 Page 4 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 **** END ****