BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                         AB 50|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 50
          Author:   Pan (D)
          Amended:  9/5/13 in Senate
          Vote:     21


           SENATE HEALTH COMMITTEE  :  7-1, 8/21/13
          AYES:  Hernandez, Anderson, Beall, De Le�n, DeSaulnier, Monning,  
            Pavley
          NOES:  Nielsen
          NO VOTE RECORDED:  Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  6-1, 8/30/13
          AYES:  De Le�n, Gaines, Hill, Lara, Padilla, Steinberg
          NOES:  Walters

           ASSEMBLY FLOOR  :  54-24, 6/14/13 - See last page for vote


           SUBJECT  :    Health care coverage:  Medi-Cal:  eligibility

           SOURCE  :     Author


           DIGEST  :    This bill requires the Department of Health Care  
          Services (DHCS) to adopt regulations implementing the provision  
          that a woman is eligible for full-scope Medi-Cal benefits if her  
          income is less than 100% of the federal poverty level (FPL) as  
          determined, counted, and valued in accordance with federal law,  
          by January 1, 2017, and to provide semiannual status reports to  
          the Legislature until that time.

           Senate Floor Amendments  of 9/5/13 delete provisions in the bill  
                                                                CONTINUED





                                                                      AB 50
                                                                     Page  
          2

          that permit DHCS to implement Medi-Cal related health care  
          reform administratively, followed by the adoption of  
          regulations; that modify provisions regarding the budgeting  
          methodology for county Medi-Cal eligibility determination; and  
          that require the California Healthcare Eligibility, Enrollment,  
          and Retention System application form for Medi-Cal and Covered  
          California coverage to include additional demographic questions  
          that are voluntary for applicants.

           ANALYSIS  :    

          Existing law:

          1.Establishes the Medi-Cal program, which is administered by  
            DHCS, under which qualified low-income individuals receive  
            health care services.

          2.Requires DHCS to provide Medi-Cal eligibility to pregnant  
            women and infants with family incomes up to 200%, of the FPL.   
            The scope of Medi-Cal benefits provided to pregnant women  
            (full-scope benefits versus pregnancy-only benefits) depends  
            upon several factors, including her income, immigration  
            status, assets, and whether she is otherwise Medi-Cal  
            eligible.

          This bill:

          1.Requires, effective January 1, 2014, a woman to be eligible  
            for full-scope Medi-Cal benefits, as defined, if her income is  
            less than 100 % of the FPL.

          2.Requires DHCS, without taking any further regulatory action,  
            to implement, interpret, or make specific this provision by  
            means of all-county letters, plan letters, plan or provider  
            bulletins, or similar instructions until the time regulations  
            are adopted. 

          3.Requires DHCS to adopt regulations by January 1, 2017, as  
            specified.

          4.Requires, beginning six months after the effective date of  
            these provisions, DHCS to provide a status report to the  
            Legislature on a semiannual basis, until regulations have been  
            adopted.

                                                                CONTINUED





                                                                      AB 50
                                                                     Page  
          3


          5.Authorizes implementation of these provisions only if and to  
            the extent that federal financial participation is available  
            and any necessary federal approvals have been obtained.

           Background
           
           Medi-Cal benefits for low-income pregnant women  .  State law  
          requires Medi-Cal to cover pregnant women without a share of  
          cost with incomes below 200% of the FPL.  However, the scope of  
          coverage a woman receives (full-scope Medi-Cal coverage versus  
          Medi-Cal coverage for pregnancy-only services) depends upon her  
          income, immigration status, assets, and whether she meets other  
          criteria (for example, a pregnant woman can only receive  
          full-scope coverage if she has "linkage" to Medi-Cal for  
          specified reasons).  DHCS indicates a low-income pregnant woman  
          in her first or second trimester with income between 59% and  
          100% of the FPL is eligible for pregnancy-only Medi-Cal coverage  
          and does not qualify for full-scope Medi-Cal unless she is  
          otherwise linked to Medi-Cal (such as being on CalWORKS) until  
          she reaches her third trimester.

          Under this bill, women who are citizens or legal immigrants with  
          family incomes below 100% of the FPL (effectively, women with  
          incomes between 59% and 100% of the FPL or income between  
          $11,523 and $19,530 for a family of three in 2013) are eligible  
          for full-scope Medi-Cal coverage.  This addresses an anomaly in  
          the federal Medicaid expansion that provides single adult women  
          and men with broader coverage than would be provided to pregnant  
          women who are currently eligible for pregnancy-only services.

           DHCS use of provider bulletins followed by regulations  .  The use  
          of provider bulletins in lieu of regulations has been an  
          on-going issue of dispute between the Legislature and DHCS.   
          While the Legislature has authorized the exemption from the  
          rule-making provisions of the Administrative Procedure Act (APA)  
          when urgent action is needed (such as to immediately implement  
          budget savings proposals) or for ease of program implementation,  
          the requirements set forth in the APA are designed to provide  
          the public with a meaningful opportunity to participate in the  
          adoption of state regulations and to ensure that regulations are  
          clear, necessary and legally valid, and broadly available to the  
          public.  In addition, many Medi-Cal policies and program rules  
          are contained in statute, all-county letters and regulations,  

                                                                CONTINUED





                                                                      AB 50
                                                                     Page  
          4

          making it difficult to discern the complex eligibility and  
          related requirements for this program.  This bill adopts a  
          compromise in initially allowing the Medi-Cal-related health  
          reform provisions to be adopted by all-county letters or similar  
          instructions but requires the adoption of regulations by January  
          1, 2017.

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

          According to the Senate Appropriations Committee:

           Unknown costs to provide full-scope benefits to pregnant women  
            with household incomes between 60% and 100% of the federal  
            poverty level (General Fund and federal funds).  This bill  
            extends eligibility to include all Medi-Cal benefits for this  
            population.  DHCS has been unable to provide information on  
            anticipated the number of eligible women this change will  
            impact or the marginal increase in spending to provide  
            full-scope Medi-Cal benefits.

           SUPPORT  :   (Verified  9/6/13)

          California Primary Care Association

           ASSEMBLY FLOOR  :  54-24, 6/14/13
          AYES:  Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,  
            Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,  
            Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray,  
            Hall, Roger Hern�ndez, Holden, Jones-Sawyer, Levine,  
            Lowenthal, Medina, Mitchell, Mullin, Muratsuchi, Nazarian,  
            Pan, Perea, V. Manuel P�rez, Quirk, Quirk-Silva, Rendon,  
            Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams,  
            Yamada, John A. P�rez
          NOES:  Achadjian, Allen, Ch�vez, Conway, Dahle, Donnelly, Beth  
            Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue,  
            Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen,  
            Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Bigelow, Vacancy


          JL:ej  9/6/13   Senate Floor Analyses 


                                                                CONTINUED





                                                                      AB 50
                                                                     Page  
          5

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****










































                                                                CONTINUED