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  








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            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  








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               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  








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            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  








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            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.









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           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