BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1124
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

              AB 1124 (Muratsuchi) - As Introduced:  February 22, 2013 

          Policy Committee:                              Health Vote:18-0
                        Veterans Affairs                      10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill repeals, and recasts as a statewide permanent program,  
          a two-year pilot program that utilizes a federal data system to  
          identify veterans enrolled in Medi-Cal and, as specified, assist  
          them in obtaining federal veteran health care benefits.  Makes  
          an appropriation in an unspecified amount to the Department of  
          Veterans Affairs.

           FISCAL EFFECT  

          1)Approximately $150,000 in state GF costs to administer the  
            program, offset by unknown but likely significant cost  
            savings/avoidance as veterans are identified and health costs  
            are shifted away from Medi-Cal to the federal veterans' health  
            care system.   
           
          2)Unspecified appropriation.

           COMMENTS  

           1)Rationale  . The pilot program was enacted in health budget  
            trailer legislation, AB 1183 (Budget Committee) Chapter 758,  
            Statutes of 2008. The Department of Health Care Services  
            reported on the pilot last year and noted a net savings/cost  
            avoidance of $1.4 million after accounting for $150,000 in  
            costs for the pilot.  Although AB 1183 initially specified a  
            three-county pilot, it was expanded to 10 counties in the  
            second year and DHCS has continued the program in those 10  
            counties.  The language in existing law creating the pilot  
            also authorizes DHCS, upon its determination the pilot is  
            cost-effective, to implement the program statewide and  








                                                                  AB 1124
                                                                  Page  2

            continue it indefinitely. 

           2)Previous legislation  .  AB 1223 (Veterans Affairs Committee) of  
            2012 would have required DHCS to implement the pilot program  
            statewide. The governor vetoed AB 1223, noting current law  
            already allows program expansion and stating, "More effort  
            should go into understanding which health care benefits work  
            best for veterans, and how that outreach can be most effective  
            before expending additional resources statewide."
             


           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081