BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 100
          Author:   Assembly Budget Committee
          Amended:  6/13/13 in Senate
          Vote:     21


           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Budget Act of 2013:  Coordinated Care Initiative

           SOURCE  :     Author


           DIGEST  :    This bill changes existing law regarding the  
          Coordinated Care Initiative (CCI) and delinks CCI components to  
          allow the mandatory enrollment of Medi-Cal and Medicare  
          beneficiaries (dual eligibles) into Medi-Cal managed care, the  
          integration of long-term supports and services (LTSS) into  
          managed care plans, and the commencement of the In-Home  
          Supportive Services (IHSS) Statewide Public Authority, to  
          proceed separately from the CCI Duals Demonstration Project (now  
          called Cal MediConnect).

           ANALYSIS  :    The 2012 Budget authorized the CCI, by which dual  
          eligibles receive medical, behavioral, long-term supports and  
          services, and home- and community-based services coordinated  
          through a single health plan in eight demonstration counties  
          (Alameda, Los Angeles, Orange, Riverside, San Bernardino, San  
          Diego, San Mateo, and Santa Clara).

          CCI contains three key components, (1) Cal MediConnect -  
          Individuals who are dual eligibles receive all of their services  
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          through a managed care plan, (2) mandatory enrollment of dual  
          eligibles into Medi-Cal managed care, and (3) integration of  
          long-term supports and services into managed care.  Existing law  
          sets forth certain circumstances that renders these components  
          inoperative and links these components together so that each  
          component cannot function or operate exclusive of the other.

          This bill:

          1.Delinks the operation of Cal MediConnect from mandatory  
            enrollment of duals into Medi-Cal managed care, the  
            integration of Medi-Cal long-term supports and services into  
            managed care plans, and the commencement of the IHSS Statewide  
            Public Authority.

          2.Requires the Department of Health Care Services (DHCS) to  
            offer Medicare D-SNP contracts to existing D-SNP plans in  
            2014.  Additionally, in 2014, beneficiaries enrolled in a  
            Medicare Advantage or D-SNP plan operating in a CCI county  
            shall be exempt from passive enrollment into Cal MediConnect.

          3.Provides for health plan risk corridors for populations and  
            services that are part of the CCI.

          4.Requires DHCS, commencing August 1, 2013, to convene  
            stakeholders at least quarterly to review progress on CCI and  
            makes recommendations to DHCS and the Legislature for the  
            duration of CCI.

          5.Deletes previous requirements (i.e., the poison pill)  
            regarding the ongoing operation of CCI.

          6.Specifies that if, at least 30 days prior to the enrollment of  
            beneficiaries into the CCI, the Director of Finance estimates  
            that CCI will not generate net General Fund savings, then, the  
            CCI becomes inoperative July 1, 2014.

          7.Specifies that CCI counties include the counties of Alameda,  
            Los Angeles, Orange, Riverside, San Bernardino, San Diego, San  
            Mateo, and Santa Clara.

          8.Declares that, if the LTSS portion of CCI is implemented, the  
            provisions of existing law with respect to the rights of  
            recipients to select, direct, supervise, and terminate IHSS  

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            providers, and the obligations of health plans to enter into  
            memorandums of understanding with county agencies that would  
            continue to perform specified functions and responsibilities  
            related to the IHSS program, remain in effect.

          9.Deletes a provision of existing law that would have eliminated  
            an existing county IHSS Maintenance of Effort (MOE)  
            requirement if the Duals Demonstration Project ceased to be  
            operative.  At the same time, the MOE still becomes  
            inoperative if the larger CCI becomes inoperative.

          10.Makes additional, technical changes.

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



          JA:ej  6/14/13   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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