BILL ANALYSIS                                                                                                                                                                                                    Ó





                                                                  AB 1208

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          GOVERNOR'S VETO
          AB 1208 (Pan)
          As Amended September 6, 2013
          2/3 vote
           
           
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          |ASSEMBLY:  |62-12|(May 13, 2013)  |SENATE: |28-5 |(September 12, |
          |           |     |                |        |     |2013)          |
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          |ASSEMBLY:  |51-26|(September 12,  |        |     |               |
          |           |     |2013)           |        |     |               |
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           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  










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          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  










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          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.   










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               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 


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