BILL ANALYSIS Ó
AB 574
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 574 (Lowenthal)
As Amended August 15, 2011
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |79-0 |(May 31, 2011) |SENATE: |38-0 |(August 30, |
| | | | | |2011) |
-----------------------------------------------------------------
Original Committee Reference: AGING & L.T.C.
SUMMARY : Gives the Department of Health Care Services (DHCS)
power to authorize ten additional Programs for All Inclusive
Care for the Elderly (PACE) sites, bringing the maximum number
of authorized sites to 15, and updates the codes pertaining to
that program.
The Senate amendments changed the total number of authorized
PACE sites from 20 to 15.
AS PASSED BY THE ASSEMBLY , this bill authorized a total of 20
PACE sites (up from 10 sites currently authorized).
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)It is unknown how many and when additional PACE programs will
apply to contract with DHCS. It is unlikely that any costs
would be realized immediately, as there are currently only
five programs in the state, and several applications in
process. The following costs would occur in future years,
assuming 10 new PACE programs apply to contract with DHCS and
operate in the state:
a) Potential future administrative cost pressure to DHCS of
up to $200,000 ($100,000 General Fund) to review
applications for new PACE programs and monitor ongoing
contracts; and,
b) Potential future staffing costs of up to $90,000
(special fund) annually to the Department of Public Health
for facility licensure.
2)Potential for future Medi-Cal cost savings, or increased
AB 574
Page 2
Medi-Cal costs, to the extent enrollment in PACE is expanded
in the state. The cost impacts would depend on the likelihood
that PACE enrollees would otherwise enter nursing homes.
COMMENTS : This bill allows for the implementation of the PACE
long-term care model by increasing the cap on the number of
providers from 10 to 15. The bill also modernizes statute
relative to PACE by deleting references to its prior status as a
federal demonstration program.
The PACE model was developed to address the needs of long-term
care consumers, providers, and payers. For most participants,
the comprehensive service package permits them to continue
living at home while receiving services--rather than be
institutionalized. Capitated financing allows providers to
deliver all services participants need rather than be limited to
those reimbursable under the Medicare and Medicaid
fee-for-service systems.
In order to participate in a PACE program, a person must be 55
+, meet the requirement for skilled nursing home care, live in a
service area, and is able to live in the community without
jeopardizing his or her health or safety. For individuals who
are Medi-Cal eligible, the program pays for a portion of the
monthly PACE premium. Medicare pays for the rest. If a person
does not qualify for Medi-Cal, he/she is responsible for the
portion of the monthly premium Medi-Cal would pay.
There are five PACE sites operating in California presently.
1)Altamed Senior BuenaCare Los Angeles County
2)Center for Elders Independence Alameda County
3)On Lok SeniorHealth San Francisco County
4)Sutter Seniorcare Sacramento County
5)Community ElderCare of San Diego San Diego County
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990
AB 574
Page 3
FN:
0002191