BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                       AB 1208|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 1208
          Author:   Pan (D)
          Amended:  9/6/13 in Senate
          Vote:     21


          PRIOR VOTES NOT RELEVANT

           SENATE HEALTH COMMITTEE  :  6-2, 9/11/13 (Pursuant to Senate Rule  
            29.10)
          AYES:  Hernandez, Beall, De León, Monning, Pavley, Wolk
          NOES:  Anderson, Nielsen
          NO VOTE RECORDED:  DeSaulnier

           SENATE APPROPRIATIONS COMMITTEE  :  5-1, 9/12/13 (Pursuant to  
            Senate Rule 29.10)
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters (Vice Chair)
          NO VOTE RECORDED:  Gaines


           SUBJECT  :    Insurance affordability programs:  application form

           SOURCE  :     Equality California


           DIGEST  :    This bill authorizes the application form for  
          insurance affordability programs form to include questions that  
          are voluntary for applicants to answer regarding sexual  
          orientation and gender identity or expression.  This bill,  
          effective January 1, 2015, requires the form to include  
          questions that are voluntary for applicants to answer regarding  
          the demographic data categories specified.
                                                                CONTINUED





                                                                    AB 1208
                                                                     Page  
          2


           Senate Floor Amendments  of 9/6/13 delete the prior contents of  
          this bill dealing with medical homes, and instead include  
          provisions in this bill that were previously included in AB 50  
          (Pan) that require, by January 1, 2015, the California  
          Healthcare Eligibility, Enrollment, and Retention System  
          application form for Medi-Cal and Covered California coverage  
          include additional questions that are voluntary for applicants  
          to answer on demographic data categories.

           ANALYSIS  :    

          Existing law:

          1. Establishes the Medi-Cal program, which is administered by  
             Department of Health Care Services (DHCS), under which  
             qualified low-income individuals receive health care  
             services.

          2. Requires a single, accessible, standardized paper,  
             electronic, and telephone application for insurance  
             affordability programs be developed by DHCS in consultation  
             with the Managed Risk Medical Insurance Board and the Covered  
             California board.  Requires the application to be used by all  
             entities authorized to make an eligibility determination for  
             any of the insurance affordability programs and by their  
             agents.

          3. Permits the form to include questions that are voluntary for  
             applicants to answer regarding demographic data categories,  
             including race, ethnicity, primary language, disability  
             status, and other categories recognized by the federal  
             Secretary of Health and Human Services (HHS) under a  
             specified provision of the Affordable Care Act (ACA).

          This bill: 

          1. Authorizes, until January 1, 2015, the application form for  
             insurance affordability program coverage to include  
             additional questions that are voluntary for applicants to  
             answer on sexual orientation and gender identity or  
             expression.

          2. Requires, by January 1, 2015, the application form to include  

                                                                CONTINUED





                                                                    AB 1208
                                                                     Page  
          3

             questions that are voluntary for applicants to answer  
             regarding demographic data categories, including race,  
             ethnicity, primary language, disability status, sexual  
             orientation, gender identity or expression and other  
             categories recognized by the federal Secretary of the DHHS.




           Background
           

          The ACA makes numerous changes to simplify enrollment in public  
          health coverage programs.  ACA requires that an enrollment  
          system be created that allows state residents to apply for  
          enrollment, receive an eligibility determination, and renew  
          participation in state health subsidy programs.  In addition,  
          ACA requires the Secretary of DHHS to develop and provide to  
          each state a single, streamlined form that:


           May be used to apply for all applicable state health subsidy  
            programs (Medi-Cal, Healthy Families Program, and through  
            Covered California);  


           May be filed online, in person, by mail, or by telephone; 


           May be filed with Covered California or with state officials  
            operating one of the other applicable state health subsidy  
            programs; and, 

           Is structured to maximize an applicant's ability to complete  
            the form satisfactorily, taking into account the  
            characteristics of individuals who qualify for applicable  
            state health subsidy programs.  

           Comments
           
          According to the author's office, this bill contains provisions  
          related to the collection of demographic data on the simplified  
          application for insurance affordability programs that is  
          required by the federal Patient Protection and ACA.  The  

                                                                CONTINUED





                                                                    AB 1208
                                                                     Page  
          4

          provisions were previously in AB 50 (Pan) but deleted at the  
          request of the Administration.  The author's office states that  
          it is essential to continue to pursue this provision as a  
          stand-alone bill.  

          The collection of this demographic data is needed for two  
          reasons.  The first is to assess and evaluate application and  
          program enrollment data to determine whether a particular  
          demographic category is underrepresented.  This could be a  
          geographic region or a particular language or ethnic group.   
          Trends could be identified that would allow tailored outreach  
          strategies to target these underrepresented groups or areas.  
          Secondly, this data is needed to identify health disparities by  
          region and other demographic categories, such as gender identify  
          and language spoken.  Currently only language spoken, gender and  
          ethnicity are being collected by the Medi-Cal program.  This  
          bill is also a companion bill to AB 411(Pan) will provide for a  
          more detailed analysis of disparities among these categories in  
          the Medi-Cal managed care program.  With regard to Covered  
          California, in order to meet the requirements of the ACA and for  
          the new system to be operational by October 1, 2013, a decision  
          was made to omit these items from the initial system design.   
          Therefore, this bill does not mandate the collection until  
          January 1, 2015. However, this demographic information will be  
          crucial and therefore should begin to be collected in the  
          future.  It is not sufficient to defer the collection of the  
          data to the health plans as there is no guarantee that it will  
          be collected and analyzed in order to identify and reduce health  
          disparities.

           Prior/Related Legislation
           
          AB 50 (Pan) originally contained the provisions of this bill,  
          among other changes.  The provisions contained in this bill was  
          amended out of AB 50 through amendments adopted on the Senate  
          Floor on September 6, 2012, which deleted the previous contents  
          of AB 1208 that dealt with medical homes.

          AB 1296 (Bonilla, Chapter 641, Statutes of 2011), the Health  
          Care Eligibility, Enrollment, and Retention Act, requires the  
          HHS Agency, in consultation with other state departments and  
          stakeholders, to undertake a planning process to develop plans  
          and procedures regarding these provisions relating to enrollment  
          in state health programs and federal law.  AB 1296 also  

                                                                CONTINUED





                                                                    AB 1208
                                                                     Page  
          5

          established the existing law requirements for the application  
          form for insurance affordability programs.  

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

          According to the Senate Appropriations Committee, one-time costs  
          of $100,000 to $150,000 to modify information technology systems  
          to allow the health care coverage application system for  
          Medi-Cal and the Covered California to include required  
          demographic questions in the application (federal funds or  
          special funds).

           SUPPORT  :   (Verified  9/12/13)

          Equality California (source)
          California Lesbian, Gay, Bisexual, and Transgender Health Human  
          Services 
          Network
          California Pan-Ethnic Health Network
          Transgender Law Center

           ARGUMENTS IN SUPPORT  :    This bill is sponsored by Equality  
          California (EC), which states a number of studies have indicated  
          that members of the lesbian, gay, bisexual and transgender  
          (LGBT) population continue to experience worse health outcomes  
          than their non-LGBT counterparts.  Due to factors like low rates  
          of health insurance coverage, high rates of stress from  
          systematic harassment and discrimination, and a lack of cultural  
          competency in the health care system, LGBT people are at a  
          higher risk for cancer, mental illnesses, and other diseases,  
          and are more likely to smoke, drink alcohol, use drugs, and  
          engage in other risky behaviors.  EC states it can only estimate  
          the full extent of LGBT health disparities due to a consistent  
          lack of data collection on sexual orientation and gender  
          identity. 

          EC writes that "this bill will significantly help to address  
          this problem by requiring that data on sexual orientation and  
          gender identity that is voluntarily given be collected for the  
          purposes of various health insurance programs in the state.   
          This information will allow researchers and advocates to get a  
          fuller and more accurate accounting of LGBT health outcomes and  
          needs-and ultimately to close the gap between the health and  

                                                                CONTINUED





                                                                    AB 1208
                                                                     Page  
          6

          well-being of LGBT people and the non-LGBT population." 

          The California Pan-Ethnic Health Network (CPEHN) writes that  
          "health disparities are prevalent and pervasive.  To address  
          these disparities experienced by California's diverse  
          communities."  CPEHN argues "our state's health care programs  
          must improve the way in which we collect and analyze data by  
          enrollee demographics, including race, ethnicity, language and  
          sexual orientation."  CPEHN argues "this bill will help in this  
          effort by updating applications to include voluntary questions  
          on certain enrollee demographics."


          JL:d  9/12/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****



























                                                                CONTINUED