BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1233| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 1233 Author: Chesbro (D) Amended: 7/2/13 in Senate Vote: 27 - Urgency SENATE HEALTH COMMITTEE : 9-0, 6/26/13 AYES: Hernandez, Anderson, Beall, De León, DeSaulnier, Monning, Nielsen, Pavley, Wolk SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 77-0, 5/28/13 (Consent) - See last page for vote SUBJECT : Medi-Cal: Administrative Claiming process SOURCE : California Rural Health Board DIGEST : This bill permits American Indian tribes, tribal organizations, or subgroups of a Native American Indian tribe or tribal organization participating in the Medi-Cal administrative claiming process to claim as a Medi-Cal Administrative Activity, facilitating Medi-Cal applications which includes, but is not limited to, using the California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS). ANALYSIS : Existing law: CONTINUED AB 1233 Page 2 1. Establishes the Medi-Cal program, administered by the Department of Health Care Services (DHCS), under which health care services are provided to qualified, low-income persons. 2. Permits DHCS to contract with participating local governmental agency (LGA) or local educational consortium (LEC) to assist with the performance of administrative activities necessary for the proper and efficient administration of the Medi-Cal program. This process is known as the Medi-Cal Administrative Activities (MAA). 3. Defines "participating local governmental agency" as a county, chartered city, Native American Indian tribe, tribal organization, or subgroup of a Native American Indian tribe or tribal organization, under contract with DHCS. 4. Requires, as a condition for participation in the MAA process, each participating LGA or LEC, for the purpose of claiming federal Medicaid reimbursement, to enter into a contract with DHCS and to certify to DHCS the total amount the LGA or LEC expended on the allowable administrative activities. This bill: 1. Permits American Indian tribes, tribal organizations, or subgroups of a Native American Indian tribe or tribal organization participating in the MAA process to claim, as a Medi-Cal Administrative Activity, facilitating Medi-Cal applications which includes, but is not limited to, using CalHEERS. 2. Takes effect immediately as an urgency statute. Comments MAA . MAA is a federal reimbursement program for the costs of "administrative activities" that directly supports efforts to identify and enroll individuals in the Medi-Cal program or to assist those already enrolled in Medi-Cal access services. The overarching policy for MAA is that allowable administrative costs must be directly related to the Medi-Cal State Plan or waiver service, if administering a Medicaid waiver, and is CONTINUED AB 1233 Page 3 "found necessary for the proper and efficient administration of the Medi-Cal State Plan." Participating entities put up the state match for the program and pay an annual participation fee to DHCS. Examples of reimbursable administrative activities include: Medi-Cal outreach; Facilitating Medi-Cal application; Medi-Cal related referral; Medi-Cal related program planning and policy development; Providing transportation to Medi-Cal services; and General administrative activities. DHCS' California Tribal MAA Implementation Plan from December 2008 is designed to be used by the state's federally recognized tribes and tribal organizations that participate in the Tribal MAA program. The purpose of the Tribal MAA program is to: Form a partnership between DHCS and participating federally recognized Tribes and Tribal Organizations; Share in the responsibility for promoting access to Medi-Cal health care for Native American Indians/Alaskan Natives; and Reimburse Tribes and Tribal Organizations for performing administrative activities allowed by Tribal MAA. Per the Tribal MAA plan and conversations with DHCS staff, facilitating a Medi-Cal application is currently reimbursable through MAA. This bill codifies this provision and explicitly states that using CalHEERS (which did not exist in December 2008 CONTINUED AB 1233 Page 4 when the Tribal MAA plan was finished) to facilitate enrollment is reimbursable through MAA. CalHEERS . Covered California was established by AB 1602 (Pérez, Chapter 655, Statutes of 2010) and SB 900 (Alquist, Chapter 659, Statutes of 2010). Individuals with incomes up to 400% of the federal poverty level (FPL) are eligible for advance premium tax credits, and those up to 250% of the FPL are also eligible for cost sharing reductions. The ACA requires states to have a single streamlined application for Exchange subsidies, their Medicaid programs and their Children's Health Insurance Programs. Covered California and DHCS are the joint program sponsors of CalHEERS, which is the information technology system running both the online application for the Exchange, Medi-Cal, and Access for Infants and Mothers and also the phone service center functions. CalHEERS is scheduled to take live applications October 1, 2013 for the new coverage to begin on January 1, 2014. CalHEERS is a Web-based portal designed to be the single streamlined resource for Californians to find out what health program they are eligible for and to make buying health insurance as easy as possible. Prior legislation SB 308 (Figueroa, Chapter 253, Statutes of 2003) included Native American Indian tribes, tribal organizations, and subgroups of tribes or tribal organizations as participating LGA for purposes of contracting with DHCS for MAAs. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/9/13) California Rural Indian Health Board (co-source) California Pan-Ethnic Health Network California Primary Care Association California Valley Miwok Tribe Chapa-De Indian Health Program Cloverdale Rancheria of Pomo Indians of California Elk Valley Rancheria, California Karuk Tribe CONTINUED AB 1233 Page 5 Manchester Band of Pomo Indians Pala Band of Mission Indians Resighini Rancheria Tuolumne Me-Wuk Indian Health Center, Inc. ARGUMENTS IN SUPPORT : According to the author's office, this bill seeks to clarify that the activities conducted to assist Native Americans in Medi-Cal applications through CalHEERS are included within MAA. Native Americans suffer from significant health disparities. Specifically, they are more likely to die from alcoholism (650%), diabetes (380%), accidents (240%) and pneumonia/influenza (140%) than other Americans. In addition to health disparities, many Native Americans live in rural areas where there is limited access to the Internet and at times phones, making the application process, even with CalHEERS particularly challenging. This bill is needed to ensure American Indians who are eligible for Medi-Cal and other services can receive the care they need. This bill is also needed to strengthen the tribal health care delivery system by providing the tribal entities access to the 100% federal financial participation for providing Medi-Cal covered services to American Indians eligible for Medi-Cal. This bill is sponsored by the California Rural Indian Health Board (CRIHB) and supported by California Pan-Ethnic Health Network, California Primary Care Association, and multiple tribes and tribal organizations to enable tribal health care clinics and other tribal government entities to facilitate the enrollment of Native Americans who qualify for Medi-Cal into the program at no cost to the state using CalHEERS. ASSEMBLY FLOOR : 77-0, 5/28/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, CONTINUED AB 1233 Page 6 Williams, Yamada, John A. Pérez NO VOTE RECORDED: Donnelly, Holden, Vacancy JL:d 8/13/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED