BILL ANALYSIS Ó
AB 1580
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Date of Hearing: April 18, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1580 (Bonilla) - As Introduced: February 2, 2012
Policy Committee: HealthVote:13-6
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill makes technical and clarifying changes to provisions
enacted in AB 1296 (Bonilla), Chapter 641, Statutes of 2011
relating to simplified applications for state health programs.
Specifically, this bill:
1)Clarifies that a requirement granting an applicant presumptive
eligibility (immediate access to benefits during the time an
application is being reviewed) is not intended to grant a
right to such benefits beyond what current law requires.
2)Clarifies that Medi-Cal applications that do not meet the new
Modified Adjusted Gross Income (MAGI) eligibility test must be
forwarded to the Medi-Cal program for further determination
only if applicants may be eligible based on aged, blindness,
or disability.
3)Makes other technical and clarifying changes.
FISCAL EFFECT
This bill has negligible direct state costs. The clarifications
it provides narrow the scope of two requirements in current law
related to the eligibility and enrollment system for health
programs. Without this bill, these requirements may have been
construed to compel some level of additional administrative
workload or state cost in state health programs, relative to
that required under the provisions of this bill.
COMMENTS
1)Rationale . According to the sponsor, Western Center on Law and
AB 1580
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Poverty (WCLP), this bill is needed to clarify questions
raised by the California Health and Human Services Agency
(CHHSA) regarding the implementation of AB 1296. The agreement
is memorialized in a letter dated September 21, 2011.
According to the letter, WCLP agreed to pursue amendments in
the 2012 session to clarify two provisions. Specifically, the
CHHSA had expressed concern that language describing
individuals who may be potentially eligible for Medi-Cal was
too broad. Secondly, the CHHSA requested clarification that
AB 1296 was not intended to grant presumptive eligibility to
any new categories.
2)New Eligibility Standards . The federal Patient Protection and
Affordable Care Act (ACA) of 2010 establishes a new definition
of income called Modified Adjusted Gross Income, or MAGI, that
will be used in determining eligibility for Medicaid and other
state health programs effective January 2014. Under the MAGI
standard, Medi-Cal eligibility for most individuals will be
determined based solely on income without regard to other
financial assets. However, an individual who fails the MAGI
income test may still be eligible for Medi-Cal. AB 1296
attempted to ensure that this secondary eligibility screen for
individuals potentially eligible on another basis would be
conducted, as appropriate. This bill defines that basis as
age, blindness, or disability.
3)Presumptive Eligibility . Current law provides that certain
limited categories of eligible individuals, such as pregnant
women, are granted presumptive eligibility. AB 1296 granted
numerous rights to applicants with respect to establishing
eligibility and maintaining enrollment in state health
programs. This bill clarifies that the language in AB 1296 was
not intended to expand presumptive eligibility.
4)Related Legislation . AB 1296 (Bonilla), Chapter 641, Statutes
of 2011 established the Health Care Eligibility, Enrollment,
and Retention Planning Act. It codified various federal
requirements in the ACA and contained other provisions related
to development of a simpler and more streamlined eligibility
determination and enrollment system for state health programs,
including the establishment of certain rights for applicants,
development of a single, standardized application, and
requirements for departments to conduct stakeholder processes
and report to the Legislature.
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5)Opposition . There is no registered opposition to this bill;
legislators who opposed this bill also opposed AB 1296
(Bonilla), the original legislation whose provisions this bill
clarifies. Opposition to both bills appears to reflect
opposition to implementation of the ACA.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081