BILL ANALYSIS Ó AB 357 Page 1 Date of Hearing: January 14, 2014 ASSEMBLY COMMITTEE ON HEALTH Richard Pan, Chair AB 357 (Pan) - As Amended: January 6, 2014 SUBJECT : Children's Health Advisory Board. SUMMARY : Renames the Healthy Families Advisory Board (HFAB) the Children's Health Advisory Board (CHAB) and transfers the panel's advisory and reporting capacity from the Major Risk Medical Insurance Board (MRMIB) to the Director of the Department of Health Care Services (DHCS). Specifically, this bill : 1)Repeals the HFAB and reinstates it as the CHAB. 2)Reassigns the authority to make appointments to the CHAB in the following manner: a) Authorizes the Governor to appoint one licensed practicing dentist, a representative from a licensed nonprofit primary care clinic, one representative of the mental health provider community, one representative from the health plan community, and one representative from the business community; b) Authorizes the Senate Committee on Rules to appoint one physician and surgeon who is board certified in the area of family practice medicine, one representative from a licensed hospital that is on the disproportionate share list maintained by DHCS, one representative of the substance abuse provider community, one representative of the county public health provider community, and one representative from the education community; and, c) Authorizes the Speaker of the Assembly to appoint three representatives from the Medi-Cal population, one physician and surgeon who is board certified in pediatrics, and one representative from a family with children with special needs. 3)Requires DHCS to provide staff assistance to CHAB. 4)States the intent of the Legislature that this bill does not AB 357 Page 2 result in a new board, but is a continuation of the prior HFAB, and that no new board members be appointed until a vacancy occurs. 5)States various findings and declarations regarding the health and well-being of California's children. EXISTING LAW : 1)Establishes HFAB, a 15 member advisory panel to advise MRMIB regarding the provision of health care services to participants in the Healthy Families Program (HFP). 2)Specifies the HFAB be composed of the following 15 members appointed by MRMIB: a) One member who is a licensed, practicing dentist; b) One representative from a licensed nonprofit primary care clinic; c) One representative of the mental health provider community; d) One representative from the health plan community; e) One representative from the business community; f) One physician and surgeon who is board certified in the area of family practice medicine; g) One representative from a licensed hospital that is on the disproportionate share list maintained by DHCS; h) One representative of the substance abuse provider community; i) One representative from the education community; j) Three representatives from the Medi-Cal population; aa) One physician and surgeon who is board certified in pediatrics; and, bb) One representative from a family with children with AB 357 Page 3 special needs. 3)Requires HFAB members to have expertise in providing health-related services to children 18 years of age and younger, if applicable. 4)Requires HFAB members to elect a chair from among its members. 5)Specifies HFAB's powers and duties include, but are not limited to, the following: a) To advise MRMIB on all policies, regulation, and operation of the Medi-Cal Program; b) To consider all written recommendations of HFAB and respond in writing when MRMIB rejects the advice of HFAB; and, c) To meet at least quarterly, unless deemed unnecessary by the chair. 6)Requires HFAB members to be reimbursed for all necessary travel expenses. 7)Transfers participants in the HFP to Medi-Cal starting no sooner than January 1, 2013. 8)Requires a time certain for the transfer of the HFAB to DHCS. FISCAL EFFECT : This bill has not yet been analyzed by a fiscal committee. COMMENTS : 1)PURPOSE OF THIS BILL . According to the author, as implementation of the Patient Protection and Affordable Care Act (ACA) moves forward, HFP participants transition to Medi-Cal, and Medi-Cal enrollment increases, it is critical that we have a process for providing stakeholder feedback regarding Medi-Cal services provided to California's children. Following the transition of all children in the HFP, nearly five million children are expected to be enrolled in Medi-Cal. Additionally, many of the approximately 460,000 children who AB 357 Page 4 are currently eligible but not enrolled in Medi-Cal are expected to enroll as outreach efforts associated with ACA implementation increase. Once the transition of children from HFP into Medi-Cal is complete, close to 50% of all children under the age of 18 in California will be enrolled in Medi-Cal. The author further states that, given the unique health needs of children and in light of recent and impending changes to the Medi-Cal program, the need is greater than ever for children in Medi-Cal to benefit from an effective and efficient stakeholder advisory process so that California can insure that they are receiving the best possible care. 2)BACKGROUND . The HFAB was established statutorily to advise MRMIB on HFP policies, regulations, operation, and implementation. It is comprised of 15 members, appointed by MRMIB, who serve three year terms, and consists of subject matter experts such as providers, health care delivery organizations, medical and dental providers, a business representative, and subscriber parents. Effective January 1, 2014, HFAB transitioned to DHCS along with the rest of HFP. The role of HFAB after transition is currently unclear. Stakeholders and the Advisory Board itself have made suggestions regarding the future role. These include more frequent meetings, direct reporting to the Director of DHCS and expansion of the role, to advise on all children in Medi-Cal. The HFAB also recommends maintaining the existing scope which includes advising on all policies, regulations and operations, submitting recommendations formally in writing and a written response, when not implemented on the reasoning for the non-implementation. In addition HFAB would have responsibilities with regard to monitoring and performance reports including evaluating aspects of the program and making recommendations. Recent U.S. Census Bureau numbers show there were about 9.3 million children under the age of 18 in California during July 2012. During the same month there were 3.6 million children enrolled in the Medi-Cal program, accounting for roughly 39% of all children under the age of 18 in the state. 3)SUPPORT . The California children's health coverage coalition, comprised of the Children's Partnership, Children Now, Children's Defense Fund-California, PICO California, the AB 357 Page 5 California Coverage and Health Initiatives, and United Ways of California support this bill, stating that in the 15 years that the HFAB has been operating, it has made recommendations that have helped to improve the quality of care for children in HFP, and has been an important space for parents of enrollees and other experts to discuss ways to improve the program, and that this bill is a means to ensure that children and families will continue to have a strong voice at DHCS. The California Medical Association supports this bill writing that given the significant programmatic and eligibility changes currently underway in Medi-Cal, a strong stakeholder advisory group process is vital to ensure access and quality of care is not compromised. The California Teachers Association also writes in support, stating that there is a lack of focus on the health of children, and this important legislation shines the spotlight on a vulnerable population. 4)SUGGESTED AMENDMENT . As currently drafted the bill requires the CHAB to advise the DHCS Director on all Medi-Cal program policies, regulations, and operations. Committee staff suggest the bill be amended as follows: On page 4, line 28 after the word "program," insert: "related to providing health care services to children" 5)RELATED LEGISLATION . AB 209 (Pan) enacts the Medi-Cal Managed Care Quality and Transparency Act of 2013 and requires DHCS to develop and implement a plan to monitor, evaluate, and improve the quality and accessibility of health care and dental services provided through Medi-Cal managed care. AB 209 is currently on the Senate inactive file. 6)PREVIOUS LEGISLATION . a) AB 1494 (Committee on Budget), Chapter 28, Statutes of 2012, provides for the transition of children from HFP to Medi-Cal in four phases, starting no earlier than January 1, 2013. b) AB 1468 (Committee on Budget), Chapter 438, Statutes of 2012, requires a time certain for the transfer of the HFAB to DHCS. AB 357 Page 6 REGISTERED SUPPORT / OPPOSITION : Support American Academy of Pediatrics, California California Academy of Family Physicians California Academy of Physician Assistants California Children's Hospital Association California Coverage & Health Initiatives California Medical Association California Optometric Association California Teachers Association Children's Defense Fund - California Children Now Community Clinic Association of Los Angeles PICO California The Children's Partnership United Ways of California Opposition None on file. Analysis Prepared by : Lara Flynn / HEALTH / (916) 319-2097