BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       AB 422
          AUTHOR:        Nazarian
          AMENDED:       June 3, 2013
          HEARING DATE:  June 26, 2013
          CONSULTANT:    Bain

           SUBJECT :  School lunch program applications: health care notice.
           
          SUMMARY  : Requires the notification schools are authorized to  
          include with information about the school lunch program, to  
          advise the applicant that he/she may be eligible for  
          reduced-cost comprehensive health care coverage through the  
          California Health Benefit Exchange and provide the applicant  
          with the contact information for California Health Benefit  
          Exchange, including its Internet Web site and telephone number.

          Existing law:
          1.Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), which provides  
            health benefits to children up to 250 percent of the federal  
            poverty level (FPL).

          2.Requires the governing board of a school district and the  
            county superintendent of schools to make applications for free  
            or reduced price meals available to students at all times  
            during each regular school day. 

          3.Requires each county to participate in a statewide pilot  
            project to determine Medi-Cal eligibility and enroll (if  
            eligible) any child six years of age or older currently  
            enrolled in school who is eligible for free meals under the  
            National School Lunch Program, upon receipt of proof of  
            participation in the National School Lunch Program and a  
            signed Medi-Cal application.

          4.Authorizes, at the option of the school district or county  
            superintendent, and to the extent necessary to implement  
            express enrollment into the Medi-Cal program, the following  
            information to be incorporated into the School Lunch Program  
            application packet or notification of eligibility for the  
            School Lunch Program using simple and culturally appropriate  
            language:

                                                         Continued---



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               a.     A notification that if a child qualifies for free  
                 school lunches, then the child may qualify for free or  
                 reduced-cost health coverage;

               b.     A request for the applicant's consent for the child  
                 to participate in the Medi-Cal program, if eligible for  
                 free school lunches, and to have the information on the  
                 school lunch application shared with the entity  
                 designated by DHCS to make an accelerated determination  
                 and the local agency that determines eligibility under  
                 the Medi-Cal program;


               c.     A notification that the school district will not  
                 forward the school lunch application to the entity  
                 designated by the DHCS to make an accelerated  
                 determination and the local agency that determines  
                 eligibility under the Medi-Cal program, without the  
                 consent of the child's parent or guardian;

               d.     A notification that the school lunch application  
                 information will only be used by the entity designated by  
                 DHCS to make an accelerated determination and the state  
                 and local agencies that administer the Medi-Cal program  
                 for purposes directly related to the administration of  
                 the program and will not be shared with other government  
                 agencies for any purpose other than the administration of  
                 the Medi-Cal program; and, 

               e.     Information regarding the Medi-Cal program,  
                 including available services, program requirements,  
                 rights and responsibilities, and privacy and  
                 confidentiality requirements.
          
          This bill:
          1.Requires, effective January 1, 2014, the notification that  
            schools are authorized to include with information about the  
            school lunch program, to do all of the following:

                  a.        Advise the applicant that the he/she may be  
                    eligible for reduced-cost comprehensive health care  
                    coverage through Covered California;

                  b.        Advise that, if the applicant's family income  
                    is low, the applicant may be eligible for no-cost  
                    coverage through Medi-Cal;




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          3


          


                  c.        Provide the applicant with the contact  
                    information for Covered California, including its  
                    Internet Web site and telephone number; and,

                  d.        Comply with the federal Americans with  
                    Disabilities Act and any other applicable federal or  
                    state disabled access law.

          2.Permits a school district to also include the notifications in  
            this bill at the beginning of the first semester or quarter of  
            the regular school term with an existing notification  
            requirement on school-related issues.

           FISCAL EFFECT  : This bill is keyed non-fiscal.

           PRIOR VOTES  :  
          Assembly Health:    19- 0
          Assembly Floor:     72- 2
          Senate Education:     9- 0
           
          COMMENTS  :  
           1.Author's statement.  Successful implementation of the Affordable  
            Care Act (ACA) will rely heavily on increasing public awareness.  
            According to the UCLA Center for Health Policy Research, it is  
            estimated that two out of three uninsured children are eligible  
            for public health coverage programs but are not enrolled.  
            Furthermore, health problems are more likely to escalate, due to  
            the lack of health insurance, consequently affecting a child's  
            ability to learn and parents' ability to work. According to The  
            Children's Partnership, 63 percent of California children who  
            newly enroll in a health care coverage program demonstrate  
            improvements in academic performance and pay closer attention in  
            class. The ACA provides expanded health care coverage to millions  
            of Californians and AB 422 is a mechanism to inform and help  
            determine eligibility of families into health care programs.
          
          2.Background. AB 59 (Cedillo), Chapter 894, Statutes of 2001,  
            established a statewide pilot project to expedite enrollment  
            into Medi-Cal for children receiving free lunches through the  
            National School Lunch Program, referred to as expedited  
            enrollment. A parent checks a box on the school lunch  
            application that they wish to have their child determined  
            eligible for Medi-Cal. The county (which performs Medi-Cal  
            eligibility determinations) receives a copy of the school  




          AB 422 | Page 4




            lunch application for the child. Based on the information  
            provided, a child can be found temporarily eligible for  
            Medi-Cal benefits. The temporary eligibility lasts until a  
            Medi-Cal determination has been completed, and the parent must  
            sign and complete a form for the child to continue receiving  
            Medi-Cal. If the child is not found temporarily eligible for  
            Medi-Cal benefits, the child may be eligible for Medi-Cal once  
            all information is reviewed (or previously, the child may have  
            been eligible for the Healthy Families Program). 

            DHCS Medi-Cal Eligibility Division indicates that the three  
            counties received applications through express enrollment for  
            this school year, with a total of fourteen schools using the  
            National School Lunch Plan/Medi-Cal application. In 2011-12,  
            74 applications were submitted through the NSLP and granted  
            presumptive eligibility for Medi-Cal, of whom 27  (36 percent)  
            became Medi-Cal eligible. In 2012-13, 37 applications were  
            submitted and granted presumptive eligibility, of whom 21 (57  
            percent) became Medi-Cal eligible.

          3.Double referral. This bill was heard in the Senate Education  
            Committee on June 12, 2013 and passed with a 9-0 vote.

          4.Prior legislation. SB 1196 ( Cedillo), Chapter 729, Statutes  
            of 2004, revised the process to permit the information from  
            the School Lunch Program to also be used to actually determine  
            eligibility for Healthy Families Program ( HFP) and any other  
            county- or local-sponsored programs, if the parent has granted  
            consent. SB 1196 also requires a county to forward a School  
            Lunch Program application and any specified supplemental forms  
            to the HFP or a county or local-sponsored health insurance  
            program, if an applicant is determined to be ineligible for  
            the full-scope, no-cost Medi-Cal.  When a child is not  
            eligible for full-scope, no-cost Medi-Cal, SB 1196 further  
            requires the county to notify the parent or guardian that  
            their child is ineligible for Medi-Cal and that the  
            application has been forwarded to the HFP or a county- or  
            local-sponsored health insurance program.

          5.Support. This bill is sponsored by the California Pan-Ethnic  
            Health Network (CPEHN) to require the notification provided to  
            parents through local school districts to include updated  
            information about new health care options. CPEHN states  
            California's population is one of the most diverse in the  
            country. Beginning in 2014, 1.42 million adults will be newly  
            eligible for Medi-Cal as a result of the expansion through the  




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            Affordable Care Act, 67 percent of whom will be from  
            communities of color and 35 percent of whom will speak English  
            less than very well. Last year, CPEHN worked with researchers  
            from UC Berkeley on a series of group interviews with  
            low-income, racial and ethnic populations, including adults  
            with Limited English Proficiency, to learn how information  
            about health coverage is obtained, shared and acted upon. The  
            focus groups that CPEHN helped to conduct provide insight into  
            how communities of color understand the benefits of the ACA  
            and the barriers they face enrolling in current programs. The  
            findings included that knowledge of the ACA varies among  
            communities of color, and focus group participants suggested  
            that multiple mediums should be utilized to reach their  
            communities with accurate, accessible, and linguistically  
            appropriate messages. Participants noted that community  
            organizations, schools, and trusted community institutions  
            such as churches, child care centers, libraries, and community  
            health centers also need to play a role in educating and  
            enrolling communities of color. This bill seeks to provide  
            parents with critical, updated information about new health  
            care options.

          6.Amendments. The County Welfare Directors Association (CWDA)  
            writes that its members often receive school lunch  
            applications for children whose parents checked the box even  
            though they already have Medi-Cal. CWDA indicates they have to  
            deny the application, which takes time and work, and it has  
            sent a denial Notice of Action to the parents, which is  
            confusing to the families because the child already has  
            Medi-Cal. CWDA suggests language to address this situation  
            that would require the county to treat the application as an  
            application for a health insurance affordability program  
            (Medi-Cal, or subsidized coverage in the Covered California,  
            the state's health benefit exchange). If the county determines  
            the child is already enrolled in a health insurance  
            affordability program, the county would take no further  
            action.
               
             (g)   Upon receipt of information on the School Lunch Program  
            application pursuant to this section for a pupil who is not  
            already enrolled in a health insurance affordability program,  
            the county shall treat the application as an application for  
            health insurance affordability programs. For purposes of  
            administration of the Medi-Cal program, the application date  
            shall be the date that the application is received by the  




          AB 422 | Page 6




            county human services department. If the county determines  
            that the pupil is already enrolled in a health insurance  
            affordability program, it shall not take any further action.

             The author has indicated that he is willing to accept this  
            amendment.
          
           SUPPORT AND OPPOSITION  :
          Support:  California Pan-Ethnic Health Network (sponsor)
                    Alameda County Board of Supervisors
                    American Federation of State, County and Municipal  
                    Employees
                    California Chiropractic Association
                    California Coverage and Health Initiatives
                    California Optometric Association
                    California Primary Care Association
                    California School Employees Association
                    California School Health Centers Association
                    California State Parent Teachers Association
                    California Teachers Association
                    Children Now
                    Children's Defense Fund
                    County Health Executives Association of California
                    Health Access California
                    Los Angeles Education Partnership
                    Los Angeles Trust for Children's Health
                    National Association of Social Workers
                    PICO California
                    Southside Coalition of Community Health Centers
                    St. John's Well Child & Family Center
                    The Children's Partnership
                    Western Center on Law and Poverty
          
          Oppose:   None received.


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