BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2034 (Fuentes) - Medical care: genetically handicapping
conditions.
Amended: June 15, 2012 Policy Vote: Health 9-0
Urgency: No Mandate: No
Hearing Date: July 2, 2012 Consultant: Brendan McCarthy
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 2034 would require the Department of Health
Care Services to develop a plan for the continued operation of
the Genetically Handicapped Persons Program after the full
implementation of the federal Affordable Care Act. The bill also
requires the plan to address adding genetic Amyotrophic Lateral
Sclerosis (ALS) to the conditions covered by the program.
Fiscal Impact:
Costs to develop the plan between $50,000 and $100,000
(General Fund).
Cost pressure to continue operating the program, likely
from $70 million to $100 million per year (70 percent
General Fund). Under current law, the Program is the payer
of last resort for participants that have other health care
coverage, such as private insurance, Medi-Cal, or Medicare.
About 40 percent of current program participants have no
other coverage, in which case the program provides general
health care coverage (with cost sharing). Under the
Affordable Care Act, an unknown portion of the program
population will likely gain other health care coverage,
reducing the program's need to pay for basic health care
costs.
Likely annual costs to provide services to ALS patients of
about $5 million per year (70 percent General Fund). Based
on current program expenditures and cost sharing with other
health care programs, the average annual cost to provide
services to newly eligible participants will be about
$65,000 per year, with an estimated annual population of 75
new program participants.
AB 2034 (Fuentes)
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Background: Under current law, the Department of Health Care
Services operates the Genetically Handicapped Persons Program,
which provides specialized care to people with designated
conditions. Most of the program's participants are eligible for
Medi-Cal and/or Medicare. Thus, the Program generally provides
"wrap-around services" by paying for specialized services such
as case management not covered by other health coverage. The
Program is the payer of last resort, so other public or private
health coverage is required to pay for covered treatments and
the Program covers remaining costs. For participants that do not
have other health care coverage, the Program covers basic health
care costs.
Proposed Law: AB 2034 requires the Department of Health Care
Services to develop a plan for the continued operation of the
Genetically Handicapped Persons Program after the full
implementation of the federal Affordable Care Act. The bill also
requires the plan to address adding genetic Amyotrophic Lateral
Sclerosis (ALS) to the conditions covered by the program.
Related Legislation: AB 1467 (Committee on Budget, Chapter 23
of 2012), the budget trailer bill on health, eliminates an
existing advisory committee for the Genetically Handicapped
Persons Program and deletes the Department's authority to add
conditions to the program through regulation.
Revised July 2, 2012