BILL ANALYSIS Ó AB 1208 Page 1 GOVERNOR'S VETO AB 1208 (Pan) As Amended September 6, 2013 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |62-12|(May 13, 2013) |SENATE: |28-5 |(September 12, | | | | | | |2013) | ----------------------------------------------------------------- ----------------------------------------------------------------- |ASSEMBLY: |51-26|(September 12, | | | | | | |2013) | | | | ----------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY : Revises the questions that may be included, but are optional to be answered, on the California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS) application form for Medi-Cal and Covered California coverage by adding sexual preference and gender identity. Effective January 1, 2015, makes these questions, that also include other demographic data categories, mandatory to be asked, but still optional to be answered. The Senate amendments delete the provisions of the bill and instead make revisions regarding the CalHEERS application. AS PASSED BY THE ASSEMBLY , this bill established the Patient Centered Medical Home Act of 2013 which defines medical homes and specified its characteristics. FISCAL EFFECT : Unknown. This bill has not been analyzed by a fiscal committee. COMMENTS : 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 AB 1208 Page 2 Patient Protection and Affordable Care Act (ACA). The provisions were previously in AB 50 (Pan) of the current legislative session but deleted at the request of the Administration. The author states that it is essential to continue to pursue these provisions 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 category, such as gender identity 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) of 2013 and 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. The California Health Benefit Exchange (Exchange) was established in 2010 by AB 1602 (John A. Pérez), Chapter 655, Statutes of 2010, and SB 900 (Alquist), Chapter 659, Statutes of 2010. Through the Exchange, now called Covered California, people with incomes up to 400% of the federal poverty level are eligible for advanced payment of premium tax credits, subsidies, and cost sharing reductions, depending on their income. The ACA requires states to have a single streamlined application for Exchange subsidies, their Medicaid programs, and their Children's Health Insurance Program. Covered California and the Department of Health Care Services (DHCS) are joint program AB 1208 Page 3 sponsors of CalHEERS, the information technology system running both the online application for the Exchange, Medi-Cal, and Access for Infants and Mothers program and also provides phone service center functions. The ACA establishes a number of requirements regarding the eligibility and enrollment process with the goal of creating a consumer-friendly, streamlined, and coordinated application process. Implementing regulations require states to develop online single streamlined applications, and build or modernize their eligibility systems to implement new simplified eligibility rules and facilitate coordination among insurance affordability programs. Federal regulations require that individuals must not be required to provide additional information or documentation unless information cannot be obtained electronically or the information obtained electronically is not reasonably compatible with self-attested information. Federal law does allow states the option of asking voluntary demographic questions. AB 1296 (Bonilla), Chapter 641, Statutes of 2011, the Health Care Eligibility, Enrollment, and Retention Act, requires the California Health and Human Services Agency, in consultation with other state departments and stakeholders, to undertake a planning process to develop plans and procedures regarding the provisions relating to enrollment in state health programs and federal law. AB 1296 also establishes the requirements for the CalHEERS application form, including the optional collection of demographic data revised by this bill. GOVERNOR'S VETO MESSAGE : AB 1208 would mandate that the single, standardized application for health insurance affordability programs include questions related to race, ethnicity, primary language, disability status, sexual orientation, gender identity and expression, so that applicants can voluntarily report this information beginning in 2015. We don't need to mandate these requirements in law. AB 1208 Page 4 The Department of Health Care Services and Covered California already have the authority to modify these types of questions on the form, and they can work constructively with stakeholders to decide what is necessary to change for 2015 and beyond. Analysis Prepared by : Marjorie Swartz / HEALTH / (916) 319-2097 FN: 0002901