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