BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1568
                                                                  Page  1

          Date of Hearing:   May 13, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

             AB 1568 (Committee on Veterans Affairs) - As Amended:  April  
                                     23, 2009  

          Policy Committee:                              HealthVote:18-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes the Public Assistance Reporting Information  
          System (PARIS) a permanent program to identify eligible veterans  
          enrolled in Medi-Cal and to increase the receipt of other  
          federal benefits. In addition, this bill delays the PARIS  
          operative date until July 1, 2010. Under current law, PARIS has  
          been established as a pilot program by AB 1183 (Committee on  
          Budget), Chapter 758, Statutes of 2008. However, the program  
          remains unfunded. 

           FISCAL EFFECT  

          1)One-time costs of $350,000 for the Department of Health Care  
            Services (DHCS) to conduct a feasibility study report (FSR) on  
            the statewide implementation of PARIS. 

          2)Major out year annual GF savings, once implemented, to the  
            extent matches lead to increased benefits for veterans and  
            reduced GF spending. If all of the 144,000 veterans currently  
            enrolled in Medi-Cal shifted to VA health care, the  
            Legislative Analyst's Office (LAO) estimates a savings to the  
            Medi-Cal Program of about $250 million GF. If 10% of veterans  
            switched from Medi-Cal to VA healthcare, reflecting a more  
            gradual shift, the estimated savings would be $25 million.    
            The LAO also identified additional non-veteran related GF  
            savings of at least $7 million. These savings would result  
            from reducing duplicate public program payments to  
            out-of-state residents and others claiming from more that one  
            state.  

           COMMENTS  

           1)Rationale  .  This bill requires DHCS to increase the  






                                                                  AB 1568
                                                                  Page  2

            identification of veterans enrolled in the Medi-Cal program  
            who are eligible to receive medical benefits through the  
            Veterans Administration (VA). Such benefits replace or  
            supplement benefits available from the Medi-Cal program.  
            Interest in PARIS stems from recommendations by the LAO to  
            promote a voluntary shift of veterans from Medi-Cal to the VA  
            system of health care. 

           2)Related Legislation  .  Supplemental report language (SLR) to  
            the Budget Act of 2007 required DHCS to file two reports  
            regarding the implementation of PARIS. AB 1183 (Committee on  
            Budget), Chapter 758, Statutes of 2008 established PARIS as a  
            pilot program. 
          AB 3082 (Committee on Veterans Affairs) in 2008 required DHCS to  
            identify veterans enrolled in the Medi-Cal program and assist  
            them in obtaining federal veterans benefits.

           
          Analysis Prepared by  :    Mary Ader / > / (916) 319-2081