BILL ANALYSIS
AB 2780
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2780 (Solorio)
As Amended August 19, 2010
2/3 vote. Urgency
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|ASSEMBLY: | |(May 6, 2010) |SENATE: |35-0 |(August 30, |
| | | | | |2010) |
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(vote not relevant)
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|COMMITTEE VOTE: |10-0 |(August 31, 2010) |RECOMMENDATION: |concur |
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Original Committee Reference: INS.
SUMMARY : Authorizes the state Department of Health Care
Services (DHCS) to use individually identifiable information
from the Department of Industrial Relations (DIR) for the
purpose of seeking recovery of Medi-Cal costs incurred by the
state for treatment provided to injured workers that should have
been incurred by employers and insurance carriers.
The Senate amendments:
1)Authorize the DHCS to use individually identifiable
information for purposes of seeking recovery of Medi-Cal costs
incurred by the state for treatment provided to injured
workers that should have been incurred by employers and
insurance carriers pursuant to existing law governing workers'
compensation claims.
2)Require the DIR to furnish individually identifiable
information to DHCS, and allows the DHCS to furnish the
information to its designated agent, provided that the
information is disclosed only for the purpose noted above.
3)Authorize the Administrative Director of the Division of
Workers' Compensation to adopt regulations solely for the
purpose of governing access by the DHCS or its designated
agents to the individually identifiable information as noted
above.
AB 2780
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EXISTING LAW:
1)Expresses the intent of the Legislature to comply with federal
law requiring that when a beneficiary has other available
health coverage or insurance, the Medi-Cal Program shall be
the payer of last resort.
2)Requires the DHCS to enter into contracts to recover Medi-Cal
costs that are payable as workers' compensation claims,
including matters on file with the Workers' Compensation
Appeals Board.
AS PASSED BY THE ASSEMBLY , this bill eliminated several insurer
annual reports concerning liability insurance and automobile
insurance, but authorized the Insurance Commissioner (IC) to
request the information at his or her discretion.
FISCAL EFFECT : Expected cost savings to state Medi-Cal Program.
COMMENTS :
1)The deleted provisions of this bill concerning the elimination
of certain reports, which had been approved by the Assembly,
have been moved into the omnibus insurance bill, AB 2782
(Committee on Insurance).
2)The purpose of the present bill is to allow the Division of
Workers' Compensation of the DIR to share workers'
compensation claims data with the DHCS, the agency that
administers the Medi-Cal Program, on a regularized and
controlled manner. Under existing law, Medi-Cal does not have
access to workers' compensation claims data until it is made
public either by being denied or if it is in the process of
being adjudicated.
3)According to Health Management Systems (HMS), which is
supporting this bill, Medi-Cal already has the authority and
the requirement under federal law to recover on claims that
should have been paid by another insurer. Included in this
requirement is the ability to request claims information
directly from the insurer. In the case of workers'
AB 2780
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compensation, this is starting to happen this year where
Medi-Cal is requesting the information directly from the
insurer. This bill is expected to make it possible for
Medi-Cal to have access to more timely and complete
information and, thereby, increase cost recoveries for the
state.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086
FN: 0006892