BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       AB 1869
          AUTHOR:        John A. Pérez
          INTRODUCED:    February 22, 2012
          HEARING DATE:  June 20, 2012
          CONSULTANT:    Rubin

           SUBJECT  :  Office of Patient Advocate: federal veterans health 
          benefits.
           
          SUMMARY  :  Adds federal veterans health benefits to the list of 
          public programs that the Office of Patient Advocate (OPA) will 
          be required to include, commencing January 1, 2013, in its 
          efforts to provide outreach and education about health care 
          coverage options.

          Existing law:
          1.Transfers OPA from the Department of Managed Health Care 
            (DMHC) to the California Health and Human Services Agency 
            (CHSSA), effective July 1, 2012.

          2.Defines OPA's goal to help individuals secure health care 
            services to which they are entitled or for which they are 
            eligible.

          3.Requires OPA, commencing January 1, 2013, to provide and 
            assist in the provision of outreach and education about health 
            care coverage options, including public programs such as 
            Medi-Cal, Healthy Families, and Medicare.
          
          This bill:
          1.Requires OPA, commencing January 1, 2013, to provide and 
            assist in the provision of outreach and education about 
            federal veterans health benefits.

           FISCAL EFFECT  :  The Assembly Appropriations analysis indicates 
          that:
          1.This bill is not likely to result in additional workload or 
            increased state costs. It simply adds specificity to a 
            requirement in current law that OPA provide information on a 
            variety of public health care programs.

          2.Potential cost savings related to this bill are uncertain, but 
            are likely negligible. Based on OPA's broad mandate to provide 
                                                         Continued---



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            a variety of information to individuals about health care 
            coverage programs, it seems likely that information about the 
            U.S. Department of Veterans Affairs (VA) benefits would be 
            provided to individuals potentially eligible for such benefits 
            even in the absence of this bill.
          
           PRIOR VOTES  :  
          Assembly Health:    19- 0
          Assembly Appropriations:17- 0
          Assembly Floor:     74- 0
           


          COMMENTS  :  
           1.Author's statement.  AB 1869 simply directs OPA to include 
            information regarding federal veteran health care benefits as 
            part of the information and assistance it provides to the 
            public. California has almost 2 million residents that are 
            veterans, many of whom are unaware of their eligibility to 
            collect federal veteran benefits, including pension and health 
            care benefits. In some instances, the health care benefits a 
            veteran may be eligible for provide a more attractive health 
            care service option than state programs. The bill would simply 
            require that a duty of OPA is to provide information regarding 
            VA health benefits so that veterans who contact the office are 
            better informed about their options.
               
          2.OPA.  OPA is an independent state office that was established 
            in July 2000 in conjunction with DMHC to represent the 
            interests of enrollees served by health care service plans 
            regulated by DMHC. AB 922 (Monning), Chapter 552, Statutes of 
            2011, transfers OPA and DMHC to CHHSA, effective July 1, 2012, 
            requires that existing duties and responsibilities apply to 
            CDI-regulated health insurers in addition to DMHC-regulated 
            health plans, and adds new duties and responsibilities with 
            respect to providing outreach and education about health care 
            coverage to consumers. AB 922 states that the Legislature 
            recognizes that, because of the enactment of the Patient 
            Protection and Affordable Care Act (ACA) on March 23, 2010, 
            and the implementation of various provisions by January 1, 
            2014, it is appropriate to transfer OPA and to confer new 
            responsibilities on OPA, including assisting consumers in 
            obtaining health care coverage and obtaining health care 
            through health coverage that is regulated by multiple 
            regulators, both state and federal.





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          3


          

          3.Veterans health benefits.  UCLA's California Health Interview 
            Survey 2009 data reveal approximately 130,000 persons in 
            California who had served in the U.S. Armed Forces were 
            uninsured despite some of these individuals possibly being 
            eligible for federal VA health care benefits. On January 1, 
            2014, individuals - including veterans - will be required to 
            maintain health coverage under the ACA. The UCLA data 
            additionally indicate that 174,000 individuals who had served 
            in the armed forces were covered by Medi-Cal. The author 
            argues that since Medi-Cal is supposed to be the payer of last 
            resort, a veteran who is eligible to be covered under VA 
            health benefits should be enrolled in the VA health care 
            program rather than Medi-Cal, a shift which would save the 
            state money since the state pays half the cost for Medi-Cal 
            services while the federal government pays the entire cost for 
            VA health benefits. In addition, the medical benefits offered 
            through the VA health care system are often greater than the 
            benefits offered through Medi-Cal.
               
          4.PARIS-Veterans data match.  According to an April 2012 report 
            to the Legislature on the Public Assistance Reporting 
            Information System (PARIS) -Veterans Match, a two-year pilot 
            program to improve the identification of Medi-Cal 
            beneficiaries who are veterans (or dependents or survivors) 
            using PARIS was conducted to potentially improve veterans 
            access to enhanced health benefits by using VA health benefits 
            and improve the cost-effectiveness of Medi-Cal. The 
            PARIS-Veterans data match is one of three different data 
            matches operated by the U.S. Department of Health and Human 
            Services' Administration for Children and Families and allows 
            states to compare their beneficiary information with the VA. 
            The report describes how the pilot project, operating from 
            July 2009 to June 2011, started with three counties (Fresno, 
            San Bernardino, and San Diego) and expanded to seven 
            additional counties (Alameda, Orange, Sacramento, San Mateo, 
            San Francisco, Santa Clara, and Solano), where the Department 
            of Health Care Services (DHCS) found 16,000 positive data 
            matches, or identifications of veterans enrolled in Medi-Cal. 
            To maximize resources, DHCS focused on redirecting to VA 
            health benefits those beneficiaries who may have had high 
            Medi-Cal expenditures, those who could have had benefits 
            restored, and survivors who appeared eligible for VA's 
            Civilian Health and Medical Program, resulting in an estimated 
            $1.634 million in cost avoidance and savings for the Medi-Cal 
            program.




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          5.Related legislation.  AB 1223 (Committee on Veterans Affairs) 
            would make PARIS, which requires DHCS to identify veterans and 
            their dependents enrolled in Medi-Cal and assist them in 
            obtaining federal veteran health care benefits, a permanent 
            statewide program and would eliminate the requirement that 
            PARIS be implemented in three consenting counties on a pilot 
            program basis. AB 1223 is pending in the Senate Health 
            Committee.

            AB 2315 (Monning) would amend the list of officers appointed 
            by the Governor that are subject to confirmation by the Senate 
            to reflect the transfer of OPA from DMHC to CHHSA, as 
            specified by AB. AB 2315 is pending in the Senate Health 
            Committee.

          6.Support.  Health Access California argues that research has 
            identified returning veterans as one of the populations that 
            faces a life transition where loss of coverage is a common 
            problem. Since military veterans have a greater need for 
            health coverage, particularly the broader benefits for mental 
            health and substance abuse treatment that will be available 
            the ACA, this bill can provide a great service to veterans 
            without impact to the state general fund. The Western Center 
            on Law and Poverty adds that this bill will ensure that 
            veterans are adequately served by OPA and receive the 
            information and assistance that they deserve.

           SUPPORT AND OPPOSITION  :
          Support:  American Federation of State, County and Municipal 
                    Employees
                    California School Employees Association
                    Health Access California
                    National Association of Social Workers, California 
                    Chapter
                    Western Center on Law and Poverty

          Oppose:   None received.

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