BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                    AB 97|
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                                 THIRD READING


          Bill No:  AB 97
          Author:   Assembly Budget Committee
          Amended:  3/14/11 in Senate
          Vote:     27 - Urgency

           
          PRIOR VOTES NOT RELEVANT


           SUBJECT  :    Budget Act of 2011:  Health Programs

           SOURCE  :     Author


           DIGEST  :    This bill makes various changes to statutes 
          related to Medi-Cal, the Healthy Families Program, and the 
          Maddy Fund in order to implement the 2011-12 Budget Act.

           Senate Floor Amendments  of 3/14/11 delete the prior version 
          of the bill and inserts the current language to make 
          various changes to statutes related to Medi-Cal, the 
          Healthy Families Program, and the Maddy Fund.

           ANALYSIS  :    This is the Omnibus Health Trailer Bill for 
          2011-12.  It contains necessary changes to enact 
          modifications in the Budget Bill for 2011-12.  It makes the 
          following key changes:

           Establishment of a State Emergency Services Fund.   A series 
          of laws provide revenues to compensate physicians, 
          hospitals and others for emergency services.  The first of 
          these laws (Maddy), Chapter 1240, Statues of 1987, allows 
          for counties to establish Emergency Medical Services Funds. 
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           Although counties are not required to establish "Maddy 
          Funds," at least 49 counties have done so.  Counties have 
          several sources of revenue for their "Maddy Funds," derived 
          from county penalty assessments on various criminal 
          offenses, motor vehicle violations, and traffic violator 
          school fees.

          SB 1173 (Alarcon), Chapter 841, Statues of 2006, authorized 
          counties to elect to levy an additional $2 dollars for 
          every $10 dollars in based fines (above the Maddy Fund) for 
          purposes of supporting local emergency medical services and 
          to provide for specified pediatric trauma services. 

          This bill modifies statute associated with changes enacted 
          in SB 1173, Statutes of 2006.  Specifically, this bill 
          provides for up to $9 million for local emergency medical 
          services and specified pediatric trauma services as 
          intended under the original enabling legislation.  

          In addition, effective as of July 1, 2011, it applies the 
          additional $2 penalty for every $10 dollars in base fines, 
          as established by SB 1173, Statutes of 2006 on a statewide 
          basis, previously a county board of supervisors could elect 
          to levy this penalty.  These additional funds, anticipated 
          to be about $55 million, are to be used to offset $55 
          million in General Fund support in the Medi-Cal Program.  
          These funds can be used to match federal funds available 
          under the Medi-Cal Program whereas previously at the local 
          level, they were not eligible for a federal fund match.

           Healthy Families Program.   This bill makes three changes to 
          the Healthy Families Program which provides health, vision 
          and dental services to children from 133 percent to 250 
          percent of federal poverty.  These changes are as follows:

              A.  Increase to Premiums.   The Budget Bill reflects the 
             Governor's proposal to increase premiums for low-income 
             families enrolled in the Healthy Families Program.  For 
             families with income from 151 percent to 200 percent of 
             poverty, an increase of $14 per child (total of $30 per 
             month), with a family maximum of $90 per month for three 
             or more children, was approved.  For families with 
             income from 201 percent to 250 percent of poverty, an 
             increase of $18 per child (total of $42 per child per 

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             month), with a family maximum of $126 per month for 
             three or more children was approved.  A total of $63.3 
             million ($22.2 million General Fund) is reflected in the 
             Budget Bill from this action. 

              B.  Vision Benefit Change.   In lieu of eliminating 
             Vision coverage for children, as proposed by the 
             Governor, this bill modifies how both eye-glass frames 
             and lenses are designed by the Healthy Families Program. 
              The Budget Bill reflects a reduction of $3 million 
             (General Fund) from this action.

              C.  Conform to Medi-Cal Mandatory Copayment for Hospital 
             Services.   This bill makes changes to the Healthy 
             Families statute to conform to changes in the Medi-Cal 
             Program related to mandatory copayments for hospital 
             services.  These are:  (1) Emergency Room visits which 
             do not result in hospitalizations or outpatient 
             observation would increase from $15 to $50; and (2) 
             Hospital Inpatient days would have a copayment of $100 
             per day, with a maximum of $200 per day.  The Budget 
             Bill reflects a reduction of $15.9 million ($5.3 million 
             General Fund) from this action. 

           Medi-Cal:  Extension of AB 1422 (Bass), Chapter 157, 
          Statutes of 2009.   The Medi-Cal provider gross premium tax, 
          authorized by AB 1422, Statutes of 2009, establishes a 
          funding source for essential preventative and primary 
          health care services provided through the Healthy Families 
          Program and Medi-Cal Program by adding Medi-Cal Managed 
          Care Plans to the list of insurers subject to California's 
          gross premiums tax of 2.35 percent.  Existing statute 
          sunsets as of June 30, 2011.

          This bill extends the sunset to January 1, 2014.  The 
          Budget Bill appropriates a total of $194.4 million from 
          this special fund, including $97.2 million for the Medi-Cal 
          Program and $97.2 million for Healthy Families.

           Medi-Cal:  Managed Care and Transition from Lanterman 
          Developmental Center.   The Budget Bill reflects baseline 
          expenditures related to the provision of Medi-Cal Managed 
          Care services provided to people with developmental 
          disabilities who have transitioned from Agnews 

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          Developmental Center or Lanterman Developmental Center.

          This bill provides clarifying language to enable the 
          Department of Health Care Services to reimburse for all 
          Medi-Cal services provided under contract with health plans 
          that are not reimbursed by the federal Medicare Program 
          (related to the "dual eligible" population).  It also 
          clarifies that Medi-Cal reimbursement shall be paid at 
          full-risk capitation levels as specified for this unique 
          population.

           Medi-Cal:  250 Percent Working Disabled Program.   This bill 
          temporarily rescinds a monthly premium increase in this 
          program since it could violate existing maintenance of 
          effort (MOE) requirements under the federal American 
          Recovery Act of 2009 provisions.

          The language requires that if the Director of Health Care 
          Services determines that federal ARRA MOE requirements no 
          longer apply, the Director shall give notice to the Joint 
          Legislative Budget Committee and DOF, as well as post this 
          information on the DHCS website.

           Medi-Cal:  Extend Roger's Amendment for One-Year.   The 
          Budget Bill reflects a reduction of $6.4 million (General 
          Fund) by extending the sunset date of Section 14091.3 of 
          Welfare and Institutions Code by one-year (to January 
          2013).  This bill provides for the extension.

          Specifically, this code section is based on federal law and 
          regulation (known as the Roger's amendment) that requires 
          state Medicaid Programs (Medi-Cal) to establish separate 
          payment amounts for emergency services and 
          post-stabilization services.  The intent of the law is to 
          establish a basis for Medi-Cal Managed Care Plans to make 
          reasonable payments to Hospitals who are "out-of-network" 
          for these services.  Historically, some hospitals have 
          litigated payments from Managed Care Plans that were high 
          enough for the federal CMS to determine them to be 
          unreasonable for the services provided.

           Medi-Cal:  Technical Sunset for Previous Rate Reduction.   
          This bill provides a sunset as of June 1, 2011 for previous 
          Medi-Cal rate reductions enacted in prior budgets as noted 

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          in Section 14105.191 of the Welfare and Institutions Code.

           Medi-Cal:  Intermediate Care Facilities Rate Reduction.   
          ICF-DD facilities provide 24-hour care to individuals with 
          developmental disabilities.
          The Budget Bill reflects a reduction of $41.1 million 
          ($20.5 million General Fund) by reducing Medi-Cal Provider 
          reimbursement by up to 10 percent for Intermediate Care 
          Facilities for the Developmentally Disabled (ICF-DD).  This 
          bill reflects necessary statutory changes for this action.
           
          Medi-Cal:  Legislature's Intent and 10 Percent Provider 
          Reduction.   The Budget Bill reflects a reduction of $1.1 
          billion ($537.1 million General Fund) in 2011-12 through 
          enactment of Medi-Cal Provider Payment reductions of up to 
          10 percent, effective as of June 1, 2011.  This reduction 
          is applicable to both Medi-Cal Fee-for-Service and Medi-Cal 
          Managed Care providers.  The Medi-Cal Provider Payment 
          reductions vary by Provider Type.  The general intent of 
          this reduction is to reflect an overall 10 percent ongoing 
          reduction.  DHCS intends to conduct rate analyses and 
          studies where necessary in order to obtain federal Centers 
          for Medicare and Medicaid (CMS) approval. 

          The bill specifies the Legislature's findings and 
          declarations, including the following key aspects:

                 In order to minimize the need for drastically 
               cutting enrollment standards or benefits during times 
               of economic crisis, it is crucial to find areas within 
               the program where reimbursement levels are higher than 
               required under the standard provided in Section 
               1902(a)(30)(A) of the federal Social Security Act and 
               can be reduced in accordance with federal law.

                 The setting of rates within the Medi-Cal program is 
               complex and is subject to close supervision by the 
               United States Department of Health and Human Services.

                 As the single state agency for Medicaid in 
               California, the DHCS has unique expertise that can 
               inform decisions that set or adjust reimbursement 
               methodologies and levels consistent with the 
               requirements of federal law.

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                 It is the intent of the Legislature for the DHCS to 
               analyze and identify where reimbursement levels can be 
               reduced consistent with the standard provided in 
               Section 1902(a)(30)(A) of the federal Social Security 
               Act and consistent with federal and state law and 
               policies, including any exemptions contained in the 
               provisions of the act that added this section, 
               provided that the reductions in reimbursement shall 
               not exceed 10 percent on an aggregate basis for all 
               providers, services and products.


          This bill provides that the Director of the DHCS shall 
          adjust provider payments by up to 10 percent as specified 
          for Medi-Cal Fee-for-Service, Medi-Cal Managed Care, and 
          certain non-Medi-Cal Programs as specified.

          This bill provides discretion to the Director of the DHCS 
          to be able to adjust the payments as specified with respect 
          to one or more categories of Medi-Cal providers, or for one 
          or more products or services rendered, or any combination 
          thereof, so long as the resulting reductions to any 
          category of Medi-Cal providers, in the aggregate, total no 
          more than 10 percent. 

          This bill specifies that payment reductions and adjustments 
          shall be implemented only if the Director determines that 
          the payments that result from the application of this 
          section will comply with applicable federal Medicaid 
          reimbursements and that federal financial participation 
          will be available.  The Director shall determine whether 
          the payments comply with applicable federal Medicaid 
          requirements, including those set forth in Section 
          1396a(a)(30)(A) of Title 42 of the United States Code.

          This bill specifies that certain services, facilities, and 
          payments are exempt from the payment reductions.

           Medi-Cal:  Managed Care Drug Rebate.   The federal Patient 
          Protection and Affordable Care Act authorized states to 
          begin collecting rebates on drugs dispensed through 
          Medicaid managed care plans.  The Budget Bill reflects 
          savings of $64 million (General Fund) by having the DHCS 

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          collect additional drug rebates for drugs dispensed through 
          Medi-Cal Managed Care Plans.  The DHCS was also provided 15 
          state positions for this purpose. 

          This bill provides DHCS authority to make these collections 
          and clarifies the meaning of "State rebate".

           Medi-Cal:  Legislative Intent to Develop New Reimbursement 
          Methodology.  This bill contains findings and declarations 
          that the Legislature recognizes that a new pharmacy 
          reimbursement rate, based on a pricing benchmark that 
          reflects actual acquisition costs, needs to be developed.  
          It is the intent of the Legislature to enact legislation by 
          August 1, 2011, that provides for development of a new 
          reimbursement methodology that will enable the DHCS to 
          achieve savings while continuing to reimburse pharmacy 
          providers in compliance with federal law.  It also 
          recognizes that the DHCS may require providers, 
          manufacturers, and wholesalers to submit any data the 
          Director determines necessary or useful in preparing for 
          the transition from a methodology based on average 
          wholesale price to a methodology based on actual 
          acquisition cost. 

           Medi-Cal:  Legislative Intent and 10 Percent Reduction on 
          Long-Term Care.   The Budget Bill reflects a reduction of 
          $392.9 million ($172 million General Fund) in 2011-12 
          through enactment of a reduction of up to 10 percent, 
          effective as of June 1, 2011, for Long-Term Care facilities 
          as specified.  

          The bill specifies the Legislature's findings and 
          declarations, including the following key aspects:

                 In order to minimize the need for drastically 
               cutting enrollment standards or benefits during times 
               of economic crisis, it is crucial to find areas within 
               the program where reimbursement levels are higher than 
               required under the standard provided in Section 
               1902(a)(30)(A) of the federal Social Security Act and 
               can be reduced in accordance with federal law.

                 The setting of rates within the Medi-Cal program in 
               complex and is subject to close supervision by the 

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               United States Department of Health and Human Services.

                 As the single state agency for Medicaid in 
               California, the DHCS has unique expertise that can 
               inform decisions that set or adjust reimbursement 
               methodologies and levels consistent with the 
               requirements of federal law.

                 It is the intent of the Legislature for the DHCS to 
               analyze and identify where reimbursement levels can be 
               reduced consistent with the standard provided in 
               Section 1902(a)(30)(A) of the federal Social Security 
               Act and consistent with federal and state law and 
               policies, including any exemptions contained in the 
               provisions of the act that added this section, 
               provided that the reductions in reimbursement shall 
               not exceed 10 percent on an aggregate basis for all 
               providers, services, and products.


          This bill provides for the Director of the DHCS to reduce 
          by up to 10 percent the Medi-Cal reimbursement provided to 
          Long-Term Care facilities as specified.  It provides the 
          Director authority to adjust the percentage reduction as 
          along as the resulting reductions in the aggregate total no 
          more than 10 percent. 

          This bill specifies that payment reductions and adjustments 
          shall be implemented only if the Director determines that 
          the payments that result from the application of this 
          section will comply with applicable federal Medicaid 
          reimbursements and that federal financial participation 
          will be available.  The Director shall determine whether 
          the payments comply with applicable federal Medicaid 
          requirements, including those set forth in Section 
          1396a(a)(30)(A) of Title 42 of the United States Code.

           Medi-Cal:  Hearing Aid Cap.   Hearing Aids are a benefit in 
          Medi-Cal when supplied by a Hearing Aid Dispenser through 
          the prescription of an Otolaryngologist or attending 
          Physician.  The Budget Bill reflects a reduction of 
          $507,000 (General Fund) by capping the maximum expenditures 
          per Medi-Cal enrollee for Hearing Aid expenditures at 
          $1,510 annually.  This cap includes expenditures for the 

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          Hearing Aid, ear molds, and repairs.  This dollar limit 
          applies to Adults.  

          It is anticipated that about 10 percent of Medi-Cal 
          enrollees, or 2,293 people, may be above this expenditure 
          cap.  The average amount expended by this 10th percentile 
          group is $1,579 annually, or about $80 higher than the 
          proposed cap.

          This bill places the $1,510 annual limit in statute and 
          assumes an implementation date of 60 days after the date 
          the DHCS secures all necessary federal approvals.  Children 
          (21 years and under), pregnant women and people in 
          Long-Term Care Facilities are exempt.

          The bill states that this benefit cap will only be 
          implemented to the extent permitted by federal law.

           Medi-Cal:  Physician "Soft Cap" After 7 Visits.   The Budget 
          Bill reflects a reduction of $44.9 million (General Fund) 
          through implementation of a "soft cap" on Physician 
          Services provided under the Medi-Cal Program.  This "soft 
          cap" would apply to Adults.  Children (aged 21 years and 
          under), pregnant women, and residents in Long-Term Care 
          facilities are exempt.

          The "soft cap" would apply to both Medi-Cal Fee-for-Service 
          and Managed Care plans.  It affects outpatient primary care 
          and specialty care provided under the direction of a 
          Physician in the following general settings:

                 Hospital Outpatient Department;
                 Outpatient Clinic;
                 Federally Qualified Health Centers (FQHCs);
                 Rural Health Centers; and
                 Physician Offices.

          This bill implements a cap of seven visits on the total 
          number of Physician Office and Clinic Visits for Physician 
          Services provided by a Physician, or under the direction of 
          a Physician, that are covered under the Medi-Cal Program.  
          For the purpose of this limit, a visit includes Physician 
          Services provided at any FQHC, Rural Health Clinic, 
          community clinic, outpatient clinic, and hospital 

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          outpatient department.

          Visits exceeding the seven per Medi-Cal beneficiary will be 
          required to be certified by the Physician, or medical 
          professional under the supervision of a Physician,  
          attesting that one or more of the following circumstances 
          is applicable:

                 Will prevent deterioration in a beneficiary's 
               condition that would otherwise result in an admission 
               to an emergency department;
                 Will prevent deterioration in a beneficiary's 
               condition that would otherwise result in inpatient 
               admission;
                 Will prevent disruption in ongoing medical therapy 
               or surgical therapy, or both, including but not 
               limited to medications, radiation, or wound 
               management;
                 Are necessary for diagnostic workup in progress 
               that would otherwise result in inpatient or emergency 
               department admission; or
                 Are necessary for the purpose of assessment and 
               form completion for Medi-Cal recipients seeking or 
               receiving in-home supportive services.

          The certification is a written declaration as specified in 
          the legislation.  The certification is to be maintained 
          onsite at the medical location as specified.

          Services not subject to this 7 visit cap limit include: (1) 
          Specialty Mental Health Services as specified; (2) any 
          pregnancy-related visit as specified.

          The 7 visit cap limit shall not apply to the following 
          Medi-Cal beneficiaries:  (1) Children (aged 21 and under) 
          in the Early and Periodic Screening, Diagnosis, and 
          Treatment (EPSDT) Program; and (2) an individual residing 
          in a Long-Term Care facility as defined. 

          For Managed Care Plans, except for the Senior Care Action 
          Network, or AIDS Healthcare Foundation, payment shall be 
          reduced by the actuarial equivalent amount of the benefit 
          reductions from the implementation of the benefit cap 
          amounts.

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          The bill states that the DHCS may seek input from consumer 
          organizations and the provider community, as applicable, 
          prior to implementation.

          Implementation is to occur no sooner than 60 days after the 
          date the DHCS secures all necessary federal approvals.
                                                        
           Medi-Cal:  Over-the-Counter Drug Change.  The Budget Bill 
          reflects a reduction of $2.2 million (General Fund) by 
          eliminating non-prescription cough and cold products for 
          Adults.  Specifically, these are "over-the-counter" 
          products such as Nyquil, Robitussin, Alka-Seltzer, and 
          similar cough and cold products.  

          This bill specifies that non-legend acetaminophen 
          containing products are no longer covered benefits, except 
          for Children (aged 21 years and under) enrolled in the 
          EPSDT Program.

           Medi-Cal:  Limit to Enteral Nutrition.   The Budget Bill 
          reflects a reduction of $14.5 million (General Fund) by 
          limiting Enteral Nutrition products provided to Adults.  
          Specifically, these products would only be provided for 
          Adults who must be tube-fed.  Conditions which require tube 
          feeding include, but are not limited to, anatomical defects 
          of the digestive tract or neuromuscular diseases.

          This bill specifies that enteral nutrition products are 
          limited to, those products to be administered through a 
          feeding tube, including, but not limited to, a gastric, 
          nasogastric, or jejunostomy tube.  Patients with diagnoses, 
          including but not limited to, malabsorption and inborn 
          errors of metabolism, if the product has been shown to be 
          neither investigational nor experimental when used as part 
          of a therapeutic regimen to prevent serious disability or 
          death, will be exempt.

           Medi-Cal:  Legislative Intent and Mandatory Copayments.   
          The Budget Bill reflects reductions by implementing 
          mandatory copayments for specified services in Medi-Cal.  
          The reductions are as follows:

                 $152.8 million (General Fund) by implementing 

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               mandatory copayments of $5 per visit at the point of 
               service.

                 $140.3 million (General Fund) by implementing 
               mandatory copayments of $3 per prescription for 
               preferred drugs (Generics) and $5 per prescription for 
               non-preferred (Brand) at the point of service.

                 $262.8 million (General Fund) by implementing 
               mandatory copayments of (1) $50 for Non-Emergency Room 
               use of an Emergency Room; (2) $50 for Emergency Room 
               use; and (3) $100 for an Inpatient Day, with a maximum 
               of $200 per Inpatient stay.

                 $27.9 million (General Fund) by implementing 
               mandatory copayments of $5 per Dental Office visit.

          The bill specifies the Legislature's findings and 
          declarations, including the following key aspects:

                 In order to minimize the need for drastically 
               cutting enrollment standards or benefits during times 
               of economic crisis, it is crucial to find areas within 
               the program were beneficiaries can share 
               responsibility for utilization of health care whether 
               they are participating in the Fee-for-Service or 
               Managed Care model of service delivery;

                 As the single State agency for Medicaid in 
               California, the DHCS has a unique expertise that can 
               inform decisions that set or adjust cost sharing 
               responsibilities for Medi-Cal beneficiaries receiving 
               health care services;

                 It is the intent of the Legislature for the DHCS to 
               obtain federal approval to implement cost-sharing for 
               Medi-Cal beneficiaries and permit providers to require 
               that individuals meet their cost-sharing obligation 
               prior to receiving care or services.

          This bill requires Medi-Cal beneficiaries to make 
          copayments as described.  The copayments shall be set by 
          the DHCS, at the maximum amount provided for as noted, 
          except that each copayment amount shall not exceed the 

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          maximum amount allowable pursuant to State Plan Amendments 
          or other federal approvals.

           Medi-Cal:  County Administration Suspension of 
          Cost-of-Doing-Business.   The Budget Bill reflects a 
          reduction of $11.8 million (General Fund) by eliminating 
          the cost-of-doing-business for Medi-Cal eligibility 
          administration conducted by the counties.  This bill 
          contains language for this suspension.  

           Medi-Cal:  Legislative Intent and Cessation of Adult Day 
          Health Care Services and Transition Program.   The Budget 
          Bill reflects (1) elimination of Adult Day Health Care 
          Services as a Medi-Cal Optional Benefit; and (2) provides 
          $85 million (General Fund), and federal matching funds to 
          provide for a transition for existing ADHC enrollees to 
          other Medi-Cal appropriate services, and to facilitate when 
          applicable transition to newly-developed federal Waiver 
          services once implemented.   

          This bill specifies the Legislature's findings and 
          declarations, including the following key aspects:

                 During times of economic crisis, it is crucial to 
               find areas within the Medi-Cal Program where 
               efficiencies can be achieved while continuing to 
               provide community-based services that support 
               independence.

                 Adult Day Health Care has been vulnerable to fraud 
               and despite attempts to curtail and prevent fraud, 
               including but not limited to, a moratorium on new 
               facilities and onsite treatment authorization request 
               review, fraud continues in this area.

                 California has added services and programs to 
               enable vulnerable populations to remain in the 
               community, as specified.

                 There are alternative services to meet the needs of 
               Medi-Cal beneficiaries utilizing ADHC, including 
               in-home supportive services, physical, occupational, 
               and speech therapies, nonemergency medical 
               transportation, and home health services.

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                 It is the intent of the Legislature for the DHCS to 
               obtain federal approval to eliminate ADHC as a 
               Medi-Cal Optional Benefit.

          This bill states that notwithstanding any other provision 
          of law related to the Medi-Cal program or to Adult Day 
          Health Care, Adult Day Health Care is excluded from 
          coverage under the Medi-Cal Program.  This shall become 
          implemented on the first day of the first calendar month 
          following 90 days after the effective date of the act that 
          adds this section or on the first day of the first calendar 
          month following 60 days after the date the DHCS secures all 
          necessary federal approvals to implement this section, 
          whichever is later.

          This bill provides that as a result of enactment to 
          eliminate Adult Day Health Care as an Optional Benefit, the 
          DHCS shall implement a short-term program to fund 
          organizations to assist individuals receiving ADHC services 
          to transition to other Medi-Cal services, social services, 
          and respite programs, or to provide social activities and 
          respite assistance for individuals who were receiving ADHC 
          services at the time the services were eliminated.  The 
          goal of this funding is to minimize the risk of 
          institutionalization by identifying needed services 
          available in the community and providing beneficiaries 
          assistance in accessing those services.

          This bill requires existing ADHC centers to provide 
          relevant participant information as specified to ensure a 
          smooth transition.

          This bill provides the DHCS certain public contract code 
          exemptions to enable the DHCS to contract with public or 
          private entities as specified to enter into contracts for 
          the purposes of implementing this article and providing for 
          a smooth transition. 

          This bill states that the specified short term program to 
          assist individuals receiving ADHC services to transition to 
          other Medi-Cal services, social services, and respite 
          programs, or to provide social activities and respite 
          assistance for individuals who were receiving ADHC services 

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          at the time the services were eliminated, is subject to an 
          appropriation in the annual Budget Act.

           Medi-Cal:  Legislative Intent for Legislation on Federal 
          Waiver.   This bill states that during the 2011-12 Regular 
          Session of the Legislature, legislation will be adopted to 
          create a new program called the Keeping Adults Free from 
          Institutions Program.  This program will provide a 
          well-defined scope of services to eligible beneficiaries 
          who meet a high medical acuity standard and are at 
          significant risk of institutionalization in the absence of 
          such community-based services.  As prescribed by subsequent 
          statute the DHCS shall develop a federal Waiver to maximize 
          federal reimbursement for this program to the extent 
          permitted by federal law.  The Budget Act of 2011 incudes 
          funding for the KAFI program.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  Yes


          CTW:nl  3/15/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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