BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 970|
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                                 THIRD READING


          Bill No:  SB 970
          Author:   De León (D), et al.
          Amended:  5/29/12
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  8-0, 4/11/12
          AYES:  Hernandez, Harman, Alquist, Anderson, De León, 
            DeSaulnier, Rubio, Wolk
          NO VOTE RECORDED:  Blakeslee

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/24/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton


           SUBJECT  :    Health Care Reform Eligibility, Enrollment, and 
          Retention 
                      Planning Act:  coordination with other programs

           SOURCE  :     Western Center on Law and Poverty


           DIGEST  :    This bill requires the states new single 
          application for health subsidy programs (being developed 
          pursuant to the Affordable Care Act) to interface with 
          eligibility and enrollment systems used by county social 
          service programs.  

           ANALYSIS  :    

          Existing law:

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          1. Requires the California Health Benefit Exchange 
             (Exchange) to inform individuals of eligibility 
             requirements for the Medi-Cal program, the Healthy 
             Families Program, or any applicable state or local 
             public program.  Requires, through screening of the 
             application for coverage by the Exchange, if the 
             Exchange determines that an individual is eligible for 
             any such program, the Exchange to enroll that individual 
             in the program.

          2. Requires, under the Health Care Reform Eligibility, 
             Enrollment, and Retention Planning Act, the California 
             Health and Human Services Agency (Agency), in 
             consultation with the Department of Health Care Services 
             (DHCS), the Managed Risk Medical Insurance Board 
             (MRMIB), the Exchange, the California Office of Systems 
             Integration, counties, health plans, consumer advocates, 
             and other stakeholders to undertake a planning and 
             development process regarding the federal Patient 
             Protection and Affordable Care Act (ACA) related to 
             eligibility for, and enrollment and retention in, state 
             health subsidy programs.

          3. Requires DHCS, in consultation with MRMIB and the 
             Exchange, to develop a single, accessible, standardized 
             paper, electronic, and telephone application for state 
             health subsidy programs as part of the stakeholder 
             process in #2 above.  Requires the application to be 
             used by all entities authorized to make an eligibility 
             determination for any of the state health subsidy 
             programs, and by their agents.

          This bill:

          1. Requires, at the time of initial application for or 
             renewal of health care coverage using the single state 
             application required under existing law, that an 
             individual be allowed to consent to have his or her 
             application information used by the appropriate county 
             human services department to initiate a simultaneous 
             application for CalWORKs and CalFresh, and by other 
             state or local departments for other human services or 
             work support programs identified by the workgroup 
             established by this bill.

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          2. Requires a county human services department, with a 
             beneficiary's consent, to take information used to renew 
             a beneficiary's eligibility for a state health subsidy 
             program and use that information to continue or 
             recertify CalWORKs or CalFresh benefits for all eligible 
             individuals, if the information is sufficient to meet 
             the requirements for a CalWORKs or CalFresh semiannual 
             report or annual recertification.

          3. Requires Agency to convene a workgroup of human services 
             and health care advocates, legislative staff, 
             representatives of county human services departments and 
             county eligibility workers, and staff from appropriate 
             state and local departments, to consider and develop a 
             plan for the integration of additional human services 
             and work support programs into the process described in 
             #1) above.

          4. Requires the above requirements to be implemented by 
             December 31, 2015. 

          5. Requires DHCS, in conjunction with counties, the 
             Department of Social Services, and representatives of 
             the Statewide Automated Welfare System (SAWS) consortia, 
             county eligibility workers, consumers, and other 
             affected stakeholder groups, to conduct a planning 
             process and develop administrative enrollment and 
             renewal policies and procedures, which DHCS is required 
             to implement by means of all-county letters or similar 
             instructions from the director.

           Background
           
          The ACA, enrollment application process, and this bill 
          proposes changes.  The ACA makes numerous changes to 
          increase the number of individuals with health coverage.  
          These changes include requiring a single streamlined form 
          for state health subsidy programs, and by allowing 
          individuals to be able to apply in person, by mail, through 
          the internet, or by telephone.

          California, through the Exchange, has issued a request for 
          proposal (RFP) to implement a new information technology 

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          system known as CalHEERS (California Healthcare 
          Eligibility, Enrollment and Retention System).   CalHEERS 
          will provide a "one-stop-shop" to determine eligibility for 
          non-subsidized health coverage for individuals in the 
          Exchange, and subsidized coverage for individuals eligible 
          for state health subsidy programs.  The Exchange RFP for 
          CalHEERS calls for vendors to provide the ability to notify 
          the applicant that he or she may be eligible for other 
          state programs (for example, CalWORKs and CalFresh), that 
          would direct the individual to the appropriate links, and 
          collect and send the basic application data (along with any 
          documents provided by the applicant) to the system of 
          record for that program to complete the application 
          process.  The Exchange asked vendors to have the ability to 
          provide this expanded system by December 31, 2015, but the 
          Exchange has a not made a decision on whether it wishes to 
          purchase these additional services (known as a "state 
          option to buy").  Vendor submissions to the Exchange were 
          submitted earlier this year, and the bids are not public 
          information.  Vendor selection is anticipated for late 
          April or early May 2012. Once the contract has been 
          awarded, the contract and the dollar amounts will be made 
          public.

          The current application process for Medi-Cal is primarily 
          through county human services departments, where 
          individuals can apply either in person, through the mail, 
          or online.  In addition, individuals can also apply 
          (through the county) for enrollment in human services 
          programs such as CalWORKs or CalFresh (previously known as 
          Food Stamps) using the same application, but those programs 
          have additional requirements that Medi-Cal does not.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee, unknown 
          costs to convene a workgroup and develop a plan to 
          integrate social service program eligibility and enrollment 
          systems into the single application (mostly federal funds).

           SUPPORT  :   (Verified  5/29/12)

          Western Center on Law and Poverty (source)

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          ACCESS Women's Health Justice 
          Alameda County Community Food Bank 
          American Federation of State, County and Municipal 
          Employees, AFL-CIO
          California Association of Food Banks
          California Black Health Network
          California Catholic Conference, Inc.
          California Children's Health Coverage Coalition 
          California Commission on Aging
          California Communities United Institute 
          California Coverage & Health Initiatives 
          California Family Resource Association
          California Food Policy Advocates 
          California Hunger Action Coalition
          California Pan Ethnic Health Network
          California Partnership to End Domestic Violence
          California Rural Legal Assistance Foundation
          California School Nutrition Association 
          California WIC Association
          Catholic Charities of California United
          Children Now
          Children's Defense Fund 
          Coalition of California Welfare Rights Organizations, Inc.
          Community Clinic Association of Los Angeles County
          Consumer Federation of California
          County Welfare Directors Association of California
          George M. Shirakawa, President, Santa Clara County Board of 
          Supervisors
          Greenlining Institute 
          Having Our Say 
          Health Access California 
          Hunger Action Los Angeles
          Jericho: A Voice for Justice
          La Cooperativa Campesina de California
          Latino Coalition for a Healthy California
          LifeLong Medical Care 
          Los Angeles Regional Food Bank 
          Madera Coalition for Community Justice 
          National Association of Social Workers
          National Health Law Program
          River City Food Bank
          San Francisco Food Security Task Force 
          Service Employees International Union 
          The Children's Partnership 

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          United Way CA


           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          this bill  has two goals:  (1) to allow consumers applying 
          for health coverage through the new streamlined California 
          Healthcare Eligibility, Enrollment and Retention System 
          (CalHEERS is an information technology system) to also 
          apply for human services programs, so they can receive 
          needed public benefits; and (2) to maximize enrollment in 
          health coverage by 2014 by identifying CalFresh recipients 
          who are uninsured and, with their consent, using their 
          CalFresh information to apply for health coverage.  
          Integrating human services programs into CalHEERS increases 
          administrative efficiency and streamlines the application 
          and renewal processes for consumers.  The benefits of 
          maximizing health coverage enrollment are several.  
          Californians will be required by law to have health 
          coverage in 2014 and coverage for the newly eligible will 
          be paid for with 100 percent federal funds from 2014-2016, 
          going to a still-high 90 percent federal match by 2020.  
          Multiple strategies are needed to maximize health coverage 
          enrollment including "pre-enrollment" of eligible 
          populations such as CalFresh recipients.  Additional 
          strategies to reach those eligible for CalFresh benefits (a 
          100 percent federally financed benefit) are also needed 
          given California's low participation level.


          CTW:do  5/29/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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