BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1263
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          Date of Hearing:  April 2, 2013

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                AB 1263 (John A. Pérez) - As Amended:  March 21, 2013
           
          SUBJECT  :  Medi-Cal: CommuniCal.

           SUMMARY  :  Establishes the Medi-Cal Patient Centered  
          Communication (CommuniCal) program at the Department of Health  
          Care Services (DHCS) to provide and reimburse for certified  
          medical interpretation services to limited English proficient  
          (LEP) Medi-Cal enrollees.  Establishes a certification process  
          and registry of CommuniCal certified medical interpreters (CCMI)  
          at the State Personnel Board (SPB) and grants CCMI collective  
          bargaining rights with the state.  Specifically,  this bill  :  

           CommuniCal  

          1)Requires DHCS to establish the CommuniCal program to provide  
            and reimburse for certified medical interpretation services to  
            LEP Medi-Cal enrollees.  

          2)Requires, commencing July 1, 2014, CommuniCal to offer medical  
            interpretation services to Medi-Cal providers who are  
            providing services on either a fee-for-service (FFS) or  
            managed care basis. 

          3)Requires DHCS to adopt policies to prohibit duplicate payments  
            to CCMIs and Medi-Cal managed care plans (MCP) for services  
            provided to Medi-Cal MCP enrollees.

          4)Permits contracting Medi-Cal providers, MCPs, and FFS  
            providers to utilize CommuniCal to provide medical  
            interpretation services to Medi-Cal enrollees.

          5)Requires all contracts between Medi-Cal MCPs and their  
            subcontractors to include information on the availability of  
            CommuniCal medical interpretation services. 

          6)Requires CommuniCal to include in-person, telephonic, and  
            video medical interpretation services.  

          7)Provides, to meet language access requirements and ensure  
            patient safety, in-person interpreter services be the  








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            preferred mode of medical interpretation in the following  
            instances whenever possible:

             a)   Family meetings regarding medical care;
             b)   Medical encounters involving difficult or agitated  
               patients;
             c)   Medical encounters to make treatment decisions;
             d)   Obtaining informed consent involving review of  
               documents;
             e)   Any medical encounter that, in the physician's judgment,  
               requires in-person interpretation for the health, safety,  
               or well-being of the patient;
             f)   Psychiatric encounters; and,
             g)   End-of-life discussions.

          8)Requires CommuniCal to be administered by a patient-centered  
            communication broker, procured through competitive Request for  
            Proposals and to be responsible for all of the following  
            duties:
             a)   Registering CCMIs with Medi-Cal;
             b)   Verifying CCMI certification with SPB;
             c)   Verifying Medi-Cal eligibility for interpreter services  
               utilizing the State's Medi-Cal Eligibility Data System;
             d)   Submitting billing summaries to Medi-Cal, aggregating  
               the cost for services provided;
             e)   Ensuring compliance with all Medi-Cal and applicable  
               CommuniCal reporting requirements;
             f)   Making payments to CCMIs, including any dues and service  
               fee deductions;
             g)   Scheduling CCMI appointments with Medi-Cal providers;
             h)   Monitoring the quality of CommuniCal interpreter  
               services;
             i)   Complying with state oversight requirements of  
               CommuniCal; and,
             j)   Creating CommuniCal promotional materials for  
               distribution to Medi-Cal providers, MCPs, and enrollees.

          9)Requires DHCS to make all applicable Medi-Cal reporting  
            requirements known to the broker and be responsible for the  
            broker's compliance with these requirements.

          10)Requires interpreters to be certified as a CCMI by the SPB to  
            participate in CommuniCal.

          11)Provides that CCMIs are responsible for all of the following:








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             a)   Performing interpreter services as an independent  
               contractor; 
             b)   Performing interpreter services independent of  
               direction, except as otherwise provided;
             c)   Preparing and submitting documentation to the broker in  
               support of time worked or other services rendered; and,
             d)   Directing and controlling the manner and means of  
               interpretation services, except as otherwise provided in  
               this article.

          12)Provides that CCMIs may do any of the following, unless  
            otherwise prohibited:
             a)   Advertise, promote, or otherwise communicate  
               availability for services to clients and the general  
               public; and,
             b)    Provide office space, equipment, support services,  
               forms, supplies, and business cards.

          13)Provides that for purposes of the CommuniCal program:
             a)   CCMIs are not state employees and shall be independent  
               contractors of the State;
             b)   CCMIs are not employees of the broker, health care  
               providers, or consumers; and,
             c)   The State action antitrust exemption to the application  
               of federal and State antitrust laws is applicable to the  
               activities of CCMIs and their exclusive representatives.

          14)Establishes the base reimbursement rate for CCMIs to be no  
            less than sixty dollars ($60) per hour and authorizes it to be  
            adjusted for factors such as geography, language spoken,  
            availability of interpreters, level of certification, and  
            travel time.

          15)Requires DHCS to issue guidance on the administration of the  
            CommuniCal program to ensure compliance with the provisions of  
            this bill and all applicable State and federal laws by all  
            contractors and subcontractors of the program.

          16)Establishes the CommuniCal Program Fund (Fund) in the State  
            Treasury and requires any interest and dividends earned on  
            deposits in the Fund be retained in the Fund for specified  
            purposes.  Provides that moneys in the Fund shall consist of  
            any funds dedicated to the CommuniCal program and that upon  
            appropriation by the Legislature to DHCS are to be used solely  
            to fund the CommuniCal program.








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          17)Requires DHCS to pursue all available sources of federal  
            funding to establish and operate CommuniCal and seek necessary  
            federal approvals.

           Certification and Registration of CommuniCal Medical  
          Interpreters
             
          1)Provides that the SPB shall serve as the CommuniCal CCMI  
            certifying body.

          2)Requires SPB to select an examination, to be known as the CCMI  
            Exam, to test competency and provide for certification of  
            Spanish-language medical interpretation within 120 days of the  
            implementation of this bill. 

          3)Requires the CCMI Exam to have both an oral and a written  
            component.  Requires the oral component be conducted in person  
            in each of the major metropolitan areas in the State.

          4)Requires SPB to select a nonprofit organization with a  
            statewide presence to administer the CCMI Exam. 

          5)Requires a CCMI registry of all interpreters who pass the CCMI  
            Exam and have been issued a certificate as specified and  
            provides that the registry shall be effective January 1, 2014.  


          6)Requires, commencing July 1, 2014, that in order to be  
            eligible to provide services under CommuniCal,  
            Spanish-language interpreters shall be required to pass the  
            CCMI Exam and be listed on the registry.

          7)Requires, for those languages of lesser diffusion (than  
            Spanish) or languages for which a recognized medical  
            interpreter exam has not been created, the certifying body  
            shall determine, by July 1, 2014, with CCMIs and their  
            exclusive representatives, appropriate testing, training, and  
            experience standards for interpreters to also be placed on the  
            registry and listed as a CCMI.

          8)Requires the state to certify individuals as certified  
            interpreters and place them on the registry if they meet one  
            of the following criteria:
             a)   Any individual who can demonstrate that as of January 1,  








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               2014, he or she has worked for a minimum of two years as an  
               in-person medical interpreter; or,
             b)   Any individual who has graduated from an accredited  
               medical interpreter training program at a college or  
               university before January 1, 2014.

          9)Requires the Department of Human Resources (CalHR) to notify  
            the individual of the acceptance or denial of his or her  
            inclusion on the registry within 10 days of submission of the  
            application. 

          10)Requires the certifying body to establish and charge fees,  
            not to exceed the reasonable costs, for applicants to take the  
            exam.  Requires a single fee that does not exceed the  
            reasonable costs for certification and listing on the  
            registry.

          11)Requires each CCMI to pay a registry and certification fee,  
            due on July 1 of each year.

          12)Requires the certifying body to establish, maintain,  
            administer, and publish annually an updated registry of CCMIs.  


          13)Permits the certifying body to remove the name of a person  
            from the registry if any of the following conditions occur:
             a)   The person is deceased;
             b)   The person notifies SPB that the person is unavailable  
               for work;
             c)   The person does not submit a registry and certification  
               fee or renewal fee; or,
             d)   The person fails to meet the quality standards and  
               medical certification requirements established by this  
               bill.

          14)Provides, for the 2013-14 fiscal year only, the fee for  
            certification and listing on the registry is waived.

          15)Requires the certifying body to adopt quality standards and  
            medical interpretation certification requirements through  
            regulations, to include, but not be limited to, maintaining  
            patient confidentiality and familiarity or experience working  
            with medical terminology.

          16)Requires testing requirements for certification in each  








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            language and the creation of a list of those languages where  
            standards permit registration of the interpreter.

          17)Requires the exclusive representative of CCMIs and a  
            nonprofit organization to partner to create and administer a  
            training program for medical interpreters, in order to prepare  
            interpreters for the exam or other certification standards  
            established for languages of lesser diffusion and provide  
            continuing education for those CCMIs placed on the registry. 

          18)Requires a community advisory committee to be established to  
            make recommendations on interpreter certification and  
            services. 

          19)Provides that the relationship of CCMIs to all parties and  
            recipients of service is one of independent contractor, unless  
            otherwise specified by law.

          20)Provides that only interpreters certified pursuant to this  
            article to be represented by a labor organization for purposes  
            of collective bargaining as established by this bill. 

           Legislative Intent

           1)Makes legislative findings and declarations regarding the  
            number of languages spoken in California, that approximately  
            one in five Californians is LEP, current language access  
            requirements and the right to interpretation services, the  
            demand for interpretation services, that language assistance  
            services are currently provided in an uncoordinated and ad hoc  
            manner, that California has the opportunity to meet this  
            demand by accessing millions of dollars in federal matching  
            funds to provide medical interpretation services to LEP  
            Medi-Cal beneficiaries, and the benefit of a coordinated  
            program to offer medical interpreter services.

          2)States legislative intent to: 

             a)   Create the CommuniCal program, which is required to  
               provide reliable access to language interpretation for  
               Medi-Cal beneficiaries who are LEP;

             b)   Establish a mechanism for accessing federal Medicaid  
               (Medi-Cal in California) matching funds to provide a  
               majority of the funding for the CommuniCal program; 








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             c)   Enable trained and qualified interpreters to meet the  
               demand for language services for a significant portion of  
               the estimated three million Medi-Cal beneficiaries with  
               LEP; and,

             d)   Facilitate accurate and timely communication between LEP  
               patients and their health care providers, which will  
               improve quality of care, reduce medical errors, increase  
               patient understanding and compliance with health diagnoses  
               and care plans, and reduce the cost of health care by  
               eliminating waste, such as unnecessary tests and other  
               care. 


           Collective Bargaining for CCMIs 
           (Note:  The following provisions are included for the purpose of  
          providing a full description of this bill, but are not within  
          the jurisdiction of this committee). 

          1)Grants CCMIs the right to form, join, and participate in the  
            activities of a labor organization of their own choosing for  
            purpose of representation.  

          2)Makes the State action antitrust exemption to the application  
            of federal and State antitrust laws applicable to the  
            activities of CCMIs and their exclusive representatives under  
            this bill and applicable law.

          3)Requires CCMIs to have the right to be represented by an  
            exclusive labor organization of their own choosing for the  
            purpose of collective bargaining with the State of California  
            on matters of mutual concern, including but not limited to, a  
            list of 10 specific provisions, including: development;  
            maintenance and application of the registry; the setting of  
            reimbursements and rates for State-funded medical interpreter  
            programs; professional development and certification;  
            scheduling; dispute resolution mechanism; mediums and modes of  
            delivery of interpretation services; and, collection and  
            disbursement of dues.

          4)Requires the appropriate bargaining unit for CCMIs to be a  
            statewide unit of eligible CCMIs.

          5)Provides that CCMIs are not public employees and that this  








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            bill does not establish an employer-employee relationship  
            between CCMIs and the State or patient-centered communication  
            brokers for any purpose, including, but not limited to, State  
            employee eligibility for health or retirement benefits, or  
            vicarious liability in tort.

          6)Requires the labor organization to be as specified in the  
            Internal Revenue Code and has as its primary purpose the  
            representation of public service providers in their relations  
            with State and other public entities.

          7)Requires, upon request by a labor organization that is signed  
            by 20% of CCMIs, the certifying body to furnish to the labor  
            organization a list of all CCMIs, including full names,  
            telephone numbers, email addresses, and mailing or home  
            addresses within five days of the request.

          8)Requires the Public Employment Relations Board (PERB), upon  
            application by petition, authorization cards, or union  
            membership cards of a labor organization adequately showing  
            that a majority of CCMIs in the State desire to be represented  
            exclusively by that labor organization and no other, to  
            certify and grant exclusive representation to the labor  
            organization.  Requires, if less than a majority but at least  
            30% of CCMIs desire to be represented exclusively by that  
            labor organization, the matter to be set for a mail ballot  
            election.

          9)Requires PERB to accept, review, and certify all valid  
            applications submitted pursuant to 7) and 8) directly above.   
            Provides that if a PERB regulation or rule conflicts with this  
            section, this section shall control.

          10)Requires any representation election to be a mail ballot  
            election.

          11)Establishes requirements for a preelection conference within  
            10 days of receipt of an adequate petition or authorization  
            cards.  Requires the labor organization and the State to  
            engage in a good faith effort to reach a consent election  
            agreement as specified.  Specifies that the State shall be  
            represented by the Department of Personnel Administration  
            (DPA) and DHCS.

          12)Prohibits other labor organizations from being allowed to  








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            intervene in an election unless the intervening labor  
            organization shows at least 30% of the CCMIs desire to be  
            represented exclusively by the intervening labor organization  
            and requires PERB to initiate a mail ballot election.

          13)Requires PERB to determine all issues or matters in dispute.   
            Requires the determination and a directed election order or  
            consent election agreement between the labor organization and  
            the State to be made within seven days of the conference.

          14)Requires PERB to initiate a mail ballot election within 10  
            days of the execution of a directed election order or consent  
            election agreement.  Requires the election to provide for an  
            affirmative vote for employee representation by the  
            petitioning employee organization.  Provides that the  
            proposition receiving the votes of a majority of all valid  
            votes cast shall win the election and if no option receives an  
            absolute majority vote of all valid votes cast, requires a  
            runoff vote between the two options receiving the highest  
            number of votes to occur within seven days.

          15)Establishes additional procedures for the election and  
            mailing of ballots including providing for the resolution of  
            final issues 30 minutes prior to the mailing of ballots, that  
            it be conducted in accordance with the consent election  
            agreement and the determination of the date and time for  
            receipt and tabulation of ballots.

          16)Requires PERB to validate the ballots against the list of  
            CCMIs.  

          17)Requires discussions and collective bargaining between the  
            certified labor organization and the State and its designated  
            agents in DPA and DHCS to commence within 30 days upon  
            certification and at any time thereafter upon request of the  
            labor organization.

          18)Requires a labor organization certified by PERB as receiving  
            a majority of all valid votes cast to be the exclusive  
            representative of all CCMIs in the State, and requires all  
            CCMIs who are eligible for the bargaining unit after the  
            certification to be part of the bargaining unit and  
            represented by the labor organization.

          19)Requires discussions and collective bargaining between the  








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            certified labor organization and the State and its designated  
            agents in DPA and DHCS to commence within 30 days upon  
            certification and at any time thereafter upon request of the  
            labor organization.

          20)Requires the State, through its designated agents in DPA and  
            DHCS, to meet and collectively bargain in good faith with  
            representatives of a certified labor organization and to fully  
            consider the proposals made by the labor organization on  
            behalf of CCMIs.

          21)Provides that an agreement resulting from collective  
            bargaining be legally binding, reduced to writing and  
            presented to the appropriate administrative, legislative, or  
            other governing body in the form of a binding agreement,  
            resolution, bill, law, or other form required for adoption. 

          22)Provides that nothing in this bill affects the right of a  
            CCMI to authorize dues or a service fee deduction from his or  
            her reimbursement, provides for the deduction of dues or  
            services fees, fair share services fees, and transmittal to  
            the treasurer of the labor organization.

          23)Prohibits the State from interfering with, intimidating,  
            restraining, coercing, or discriminating against CCMIs due to  
            the exercise of their rights, and requires a complaint  
            alleging a violation of this provision to be processed as an  
            unfair practice charge.

          24)Permits any charging party, respondent, or intervenor  
            aggrieved by a final decision or order of PERB in an unfair  
            practice case to petition for a writ of extraordinary relief  
            from that decision or order.

          25)Requires that execution of a valid written agreement between  
            the State and the certified labor organization to bar the  
            filing of an application or petition for certification of a  
            majority representative for the length of the agreement except  
            as otherwise provided in this bill.

          26)Prohibits the State from encouraging or discouraging  
            membership in a labor organization, or discriminating against  
            any CCMI on specified basis, including, but not limited to,  
            union activity, union membership, age, sex, race, or religious  
            beliefs.








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          27)Permits the state to adopt reasonable rules and regulations  
            after consultation in good faith with representatives of a  
            certified labor organization for administration of CCMI labor  
            relations under this bill.

          28)Provides, in the event of a judicial declaration declaring  
            any provision invalid, the remaining provisions remain in  
            force. 

           EXISTING LAW  :  

          1)Under the federal Civil Rights Act, prohibits discrimination  
            based on race, national origin, or color in federal assistance  
            programs.

          2)Under federal regulations, requires federal agencies to ensure  
            meaningful access to services for persons with LEP.

          3)Under State law, prohibits discrimination based on race,  
            national origin, ethnic group identification, religion, age,  
            sex, sexual orientation, color, genetic information, or  
            disability in any program or activity operated or administered  
             by a State agency. 

          4)Under the Dymally-Alatorre Bilingual Services Act, requires  
            State and local agencies providing services to a substantial  
            number of non-English speaking people to provide bilingual  
            services.  

          5)Under the Kopp Act, requires hospitals to provide language  
            services, interpreters, or bilingual staff under specified  
            circumstances and to identify and record patients' primary  
            languages in hospital records.

          6)Under state law regulating health plans, requires commercial  
            health plans to assess their members language preference and  
            provide interpretation and translation services in threshold  
            languages.

          7)Establishes the Medi-Cal program, administered by DHCS, under  
            which qualified low-income individuals receive health care  
            services.

          8)Provides, under federal law, increased federal matching  








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            funding for translation and interpretation services provided  
            in connection with the enrollment, retention, and use of  
            services under Medicaid and the Children's Health Insurance  
            Program (CHIP) known as the Healthy Families Program (HFP) in  
            California. 

           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .   According to the author, this bill is  
            to establish a program to provide and reimburse for medical  
            interpretation services to LEP Medi-Cal enrollees and to allow  
            for collective bargaining for certified medical interpreters.   
            The author cites data that show more than 40% of Californians  
            speak a language other than English at home.  In addition,  
            almost seven million Californians are estimated to speak  
            English "less than very well." Other research finds that  
            language barriers can contribute to inadequate patient  
            evaluation and diagnosis, lack of appropriate and/or timely  
            treatment, or other medical errors that can jeopardize patient  
            safety and lead to unnecessary procedures and costs.  The  
            author argues that today, language assistance in medical  
            settings is provided by trained or untrained staff or in an  
            informal manner by family members or friends.  In conclusion,  
            the author states that California has an opportunity to  
            develop a more comprehensive language assistance program by  
            seeking additional federal funding for medical interpreter  
            services in the Medi-Cal program.

           2)BACKGROUND  .  In 2006 various stakeholders created a task force  
            charged with developing recommendations for a system to  
            provide language services for Medi-Cal enrollees, which  
            evolved into the Medi-Cal Language Access Services (MCLAS)  
            Taskforce.  The ultimate vision of this effort was to design a  
            system that could accommodate large numbers of persons whose  
            primary language was other than English and to generate  
            additional federal financial participation (FFP) for  
            reimbursement of State expenditures.  According to the 2009  
            MCLAS Report, "Providing Language Services for Limited English  
            Proficient Patients in California," more than 25 languages are  
            recorded as Medi-Cal beneficiaries' preferred language.   
            Almost half (45.2%) speak a language other than English.  The  
            top five non-English languages in Medi-Cal are Spanish  








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            (36.9%), Vietnamese (1.9%), Cantonese (1.2%), Armenian (0.9%),  
            and Russian (0.6%). 

          The MCLAS Report included a recommendation to DHCS described as  
            a hybrid Brokerage/Direct Provider Reimbursement model to  
            finance the provision of language services within the Medi-Cal  
            FFS program.  This recommendation was based on a review of  
            four reimbursement models that 13 states and the District of  
            Columbia utilize: a) telephonic interpreter reimbursement; b)  
            direct interpreter reimbursement model; c) direct provider  
            reimbursement model; and, d) language services agency/broker  
            reimbursement model.  The MCLAS Taskforce analyzed the  
            positive aspects and the challenges of each model generally  
            and also specifically in light of California's Medi-Cal  
            program.

          The MCLAS Taskforce proposed a two-year pilot project in 10  
            counties to sufficiently test the model.  However, at the time  
            of the Taskforce analysis, more than half of the Medi-Cal  
            population was receiving benefits through FFS.  Since then,  
            DHCS has implemented mandatory enrollment of seniors and  
            people with disabilities and is in the process of transferring  
            low-income children from HFP to MCP.  Currently less than 35%  
            of Medi-Cal enrollees receive services on a FFS basis.   
            Additional initiatives may result in an even smaller FFS  
            population.  The approach taken by this bill does not limit  
            the model and does include providers who contract with  
            Medi-Cal MCPs as well as those who provide services on a FFS  
            basis.

           3)FEDERAL POLICY GUIDANCE  .  Each federal department has a civil  
            rights office that is charged with ensuring that its programs  
            are free of discrimination.  The responsibilities of the  
            federal Department of Health and Human Services (HHS) Office  
            for Civil Rights (OCR) include enforcing the Civil Rights Act,  
            the Americans with Disabilities Act, and the Age  
            Discrimination Act.  Any organization or individual who  
            receives monies through HHS-health departments, health plans,  
            social service agencies, nonprofits, hospitals, clinics, and  
            physicians-is subject to OCR oversight.  The OCR has the  
            authority to investigate complaints related to linguistic  
            barriers, to initiate its own reviews, and to withhold federal  
            funds for noncompliance.  The Centers for Medicare and  
            Medicaid Services (CMS) issued a State Medicaid Director  
            letter on August 31, 2000, that informed states of the policy  








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            guidance the OCR had issued on the prohibition against  
            national origin discrimination as it affects persons with LEP,  
            pursuant to Title VI the Civil Rights Act.  The OCR Policy  
            Guidance requires recipients of federal assistance to take  
            reasonable steps to ensure meaningful access to their programs  
            and activities by LEP persons.  The Guidance explains that the  
            obligation to provide meaningful access is fact-dependent and  
            starts with an individualized assessment that balances four  
            factors: a) the number or proportion of LEP persons eligible  
            to be served or likely to be encountered by the program or  
            grantee; b) the frequency with which LEP individuals come into  
            contact with the program; c) the nature and importance of the  
            program, activity, or service provided by the  
            grantee/recipient to its beneficiaries; and, d) the resources  
            available to the grantee/recipient and the costs of  
            interpretation/ translation services.  CMS states there is no  
            "one size fits all" solution for Civil Rights Act Title VI  
            compliance with respect to LEP persons, and what constitutes  
            "reasonable steps" for large providers may not be reasonable  
            where small providers are concerned. 

           4)ENHANCED FEDERAL MATCHING FUNDS  .  The Children's Health  
            Insurance Program Reauthorization Act (CHIPRA) of 2009  
            contains provisions that affect both CHIP and Medicaid.  In  
            July 2010, CMS provided guidance on the implementation of the  
            provisions of CHIPRA relating to increased administrative  
            funding for translation or interpretation services provided  
            under CHIP and Medicaid.  For Medicaid, increased federal  
            funding for translation and interpretation services available  
            under CHIPRA is limited to children and family members of  
            those children.  For CHIP, increased federal funding for  
            translation and interpretation services is not just limited to  
            children, and includes pregnant women receiving CHIP coverage.  


          Prior to CHIPRA, states could claim federal matching funds for  
            translation or interpretation costs as either an  
            administration expense or as a medical assistance-related  
            expense, and were reimbursed at the standard Federal Medical  
            Assistance Percentage (regular FMAP rate which in California  
            is typically 50% for Medi-Cal and 65% for the HFP).  Although  
            children in the HFP are currently transitioning to Medi-Cal,  
            it is still considered a CHIP program for FMAP purposes.  

          CHIPRA provides increased federal matching funding for  








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            translation or interpretation services provided to eligible  
            individuals for whom English is not their primary language.   
            The increased FMAP for translation or interpretation services  
            differs for Medicaid and CHIP.  For Medicaid, the increased  
            match is 75% of allowable expenditures.  For CHIP, the  
            increased match is 75%, or the State's enhanced FMAP plus 5%,  
            whichever is higher (in California, it would be 75%).   
            However, the increased FMAP is only available for eligible  
            expenditures claimed for administration of the Medicaid or  
            CHIP plan, and not expenditures claimed for benefits (which  
            are matched at the State's usual FMAP rate of 50% for Medi-Cal  
            and 65% for CHIP).  In addition, the expenditures that qualify  
            for the increased match under CHIP are subject to the 10% cap  
            on administrative expenditures.

           5)SUPPORT  .  Supporters such as Interpreting for California, The  
            Low-Income Self-Help Center and Catholic Charities of Santa  
            Clara County, write that this bill address the need for  
            interpreters in Medi-Cal as the state will experience greater  
            demand when 35% of the newly eligible enrollees speak English  
            less than well.  These supporters state that this bill will  
            make it possible for the 2.5 million Medi-Cal enrollees who  
            are LEP to communicate with healthcare providers, reducing  
            medical errors and improving the standard of care by providing  
            access to trained interpreters.  Other supporters such as The  
            American Federation of State, County and Municipal Employees,  
            AFL-CIO (AFSCME) and Somos Mayfair writes in support that,  
            with the expansion of Medi-Cal and the implementation of the  
            California Health Benefit Exchange under federal health care  
            reform, the State has a clear opportunity to create an  
            interpreters' program that will allow patients and providers  
            to clearly communicate with each other.  These supporters  
            point out that during these difficult fiscal times, the State  
            should seek to maximize all federal dollars to help the  
            Medi-Cal program, and matching funds for health care  
            interpretation will help our state respond to the needs of  
            LEP.  According to these supporters, in 2003 California passed  
            the strongest law in the country requiring all private health  
            plans to provide language assistance services to LEP  
            individuals beginning in 2009.  However, the supporters  
            assert, patient interpretation needs remain unmet despite  
            these laws and explicit policy directives to Medi-Cal MCPs to  
            provide interpreter services.  According to the Transnational  
            Institute for Grassroots Research and Action (TIGRA), LEP  
            Californians frequently reported problems related to their  








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            experience of care.  TIGRA asserts that LEP enrollees of the  
            state's seven largest health plans were more likely than  
            English proficient enrollees to report problems understanding  
            their physician (1.2% versus 2.6%) and believe they would have  
            received better care if they were of a different  
            race/ethnicity (14% versus 3.2%).  

           6)SUPPORT IF AMENDED  .  The Asian Americans for Civil Rights and  
            Equality (AACRE) and the Asian American Center for Advancing  
            Justice, a partnership among three Asian American civil rights  
            organizations in California, Chinese for Affirmative Action,  
            the Asian Law Caucus and the Asian Pacific American Legal  
            Center that advocates on behalf of the diverse Asian, Native  
            Hawaiian and Pacific Islander communities in California.   
            According to AACRE, they have long supported the creation of a  
            comprehensive, efficient reimbursement system in California to  
            ensure the provision of, and funding for, qualified and  
            trained interpreters and translators for LEPs.  While they  
            agree with the policy goals expressed in the bill, key issues  
            and critical details regarding the new CommuniCal program have  
            not been addressed in the bill.  In order to establish an  
            effective reimbursement program that would truly serve the  
            needs of LEP persons, AACRE recommends addressing the  
            following issues:

              a)   Quality of interpreter services provided to Medi-Cal  
               beneficiaries  .  AACRE states that this appoints SPB to be  
               the "CommuniCal certified medical interpreter (CCMI)  
               certifying body," which will be responsible to select an  
               exam to test the competency of, and to certify CCMIs.   
               However AACRE points out that due to the complexity of the  
               certification process for medical/health care interpreters,  
               (which few states have in place and two national bodies are  
               in the process of developing) it is unrealistic to expect  
               SPB to develop or have the proper staff to implement the  
               certification test, especially given the short amount of  
               time provided, 120 days for the Spanish language  
               certification, in a meaningful way.  Moreover, SPB, as the  
               agency responsible for the enforcement of the  
               Dymally-Alatorre Bilingual Services Act failed to enforce  
               compliance with the requirements.  Therefore, AACRE does  
               not believe that SPB is the most appropriate entity to  
               certify CCMIs and/or to be the certifying body.

              b)   Additional languages  .  Languages other than Spanish  








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               should also be specifically addressed, given the range of  
               additional languages spoken by the Medi-Cal population.   

              c)   Inclusion of translation, not just interpretation  . 

              d)   Guidelines for in-person interpretation  .  AACRE states  
               that the rather than provide guidelines in legislation,  
               this should be left to a broader range of stakeholders,  
               such as health care providers, interpreter associations and  
               interpreters, LEP advocates and patients, who could better  
               determine the appropriate times when the different modes of  
               interpretation services should be used.

              e)   Reimbursement  .  AACRE expresses concern that there are  
               no provisions for reimbursement for bilingual staff or  
               interpreters at clinics, hospitals and doctor's offices.

              f)   Implementation Work Group  .  AACRE recommends the  
               establishment of a stakeholder group to work with DHCs to  
               address these issues. 

           7)RELATED LEGISLATION  . 

             a)   AB 505 (Nazarian) codifies existing Medi-Cal MCP  
               requirements to provide language assistance, translation,  
               and interpretation services when populations reach  
               specified thresholds.  AB 505 is pending in the Assembly  
               Health Committee.  

             b)   AB 1376 (Roger Hernández) proposes to eliminate the role  
               of the SPB and CalHR in maintaining the published list of  
               certified administrative hearing and medical examination  
               interpreters and repeal the annual fee interpreters  
               previously paid to be included on the list.  AB 1376 grants  
               authority to each department that is subject to language  
               assistance the ability to qualify and retain interpreters  
               as needed.  AB 1376 would also make technical changes to  
               existing law allowing the Administrative Director of the  
               Division of Workers' Compensation to establish, maintain,  
               administer, and publish annually an updated list of  
               certified administrative hearing interpreters; as well as  
               collect a reasonable fee from each interpreter seeking  
               certification.  AB 1376 is pending in the Assembly  
               Judiciary Committee and is double referred to the Assembly  
               Insurance Committee. 








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           8)PREVIOUS LEGISLATION  . 

             a)   AB 2392 ( John A. Pérez) of 2012, would have required  
               the DHCS to establish the CommuniCal program to provide and  
               reimburse for certified medical interpretation services  
               provided to Medi-Cal beneficiaries who are LEP.  Would have  
               established the SPB as the certifying body for the CCMI  
               program.  Would have required CommuniCal to be administered  
               by a patient-centered communication broker that is a  
               third-party administrator and provided for collective  
               bargaining rights for CCMIs.  AB 2392 died on the Assembly  
               inactive file.  

             b)   SB 442 (Calderon) of 2011 would have required general  
               acute care hospital policies for the provision of language  
               assistance to patients with language or communication  
               barriers to include procedures for discussing with the  
               patient any cultural, religious, or spiritual beliefs or  
               practices that may influence care, and to increase the  
               ability of hospital staff to understand and respond to the  
               cultural needs of patients.  Would have required hospitals'  
               policies on language assistance services to include  
               criteria on proficiency similar to those that apply to  
               health plans.  SB 442 was vetoed by the Governor.
             
             c)   SB 1405 (Soto) of 2006 would have required the  
               Department of Health Services (now DHCS) to create the Task  
               Force on Reimbursement for Language Services, as specified,  
               to develop a mechanism for seeking federal matching funds  
               from CMS to pay for language assistance services, as  
               specified.  SB 1405 was placed on the inactive file.
             
             d)   AB 800 (Yee), Chapter 313, Statutes of 2005, requires  
               all health facilities (hospitals, skilled nursing  
               facilities, intermediate care facilities, and correctional  
               treatment centers) and all primary care clinics to include  
               a patient's principal spoken language on the patient's  
               health records.

             e)   SB 853 (Escutia), Chapter 713, Statutes of 2003,  
               requires the Department of Managed Health Care and the  
               California Department of Insurance to adopt regulations to  
               ensure enrollees have access to language assistance in  
               obtaining health care services.








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           9)POLICY COMMENTS  .  

              a)   Medi-Cal Funding  . In addition to providing high quality  
               interpretation services for Medi-Cal and CHIP enrollees,  
               the author's intent is to take maximum advantage of  
               increased FMAP available through CHIPRA.  In order to  
               advance that goal the author may want to consider  
               addressing the additional Medi-Cal and CHIP funding issues.  
                While the bill is detailed and prescriptive with regard to  
               other aspects of the CCMI program such as the broker  
               arrangements, rights, roles and responsibilities of CCMIs,  
               CCMI certification and the broker procurement process, the  
               bill is lacking specificity with regard to enhanced Federal  
               match.  The following issues may need to be addressed:

                i)     Administrative cap  .  Under CHIP, the expenditures  
                 that qualify for the increased match are subject to the  
                 10% cap on all administrative expenditures.  As the  
                 California CHIP program, previously known as the HFP, is  
                 transitioning from the Managed Risk Medical Insurance  
                 Board to DHCS and the children are being enrolled into  
                 Medi-Cal, the author may want to consider including  
                 directions to DHCS to develop a process to ensure  
                 compliance with this requirement and to determine how  
                 close the current expenditures are to reaching this cap. 

                ii)    Claiming mechanisms  . The enhanced funding  
                 opportunity has specific rules and limitations because of  
                 its classification as administrative expenditures.   
                 Ultimately, the details will require negotiations with  
                 CMS and federal approval of billing mechanisms.  However,  
                 the author may want to consider either adding general  
                 directions to DHCS to seek the enhanced FMAP consistent  
                 with the CMS guidance and require DHCS to work with  
                 providers, plans, and representatives of CCMIs to develop  
                 regulations or provider bulletins to implement the  
                 reimbursement provisions or, alternatively provide more  
                 specific direction of how to meet the federal  
                 requirement.  For example CMS has stated that in order to  
                 obtain the increased translation/interpretation match,  
                 states and providers may:









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                  (1)       Enter into a contract or employ staff that  
                    provide solely translation or interpretation functions  
                    and claim related costs as administration; and/or,

                  (2)       Pay for translation or interpretation  
                    activities to assist the medical provider of record  
                    for the service separately as an administrative  
                    expenditure, in addition to the rate paid for the  
                    medical service itself. 

                iii)   Managed Care  .  According to CMS, under Medicaid or  
                 CHIP, if translation or interpretation services are  
                 provided by a contracted managed care plan and funded  
                 through a capitated payment from the State, related costs  
                 in that rate are not eligible for the increased  
                 translation/interpretation match rate because the  
                 capitated payment is a benefit expenditure, not an  
                 administrative expenditure.  This is consistent with  
                 Medicaid managed care regulations which specify that  
                 payments made under a managed care contract are  
                 considered "medical assistance services" and are  
                                                                          matchable only at the standard FMAP rate.  States have  
                 the option, however, to carve out translation or  
                 interpretation services from the capitated rate and  
                 contract separately for such services as an  
                 administrative activity.  This bill acknowledges these  
                 restrictions by requiring DHCS to adopt policies to  
                 prohibit duplicate payments to CCMIs and MMCOs, for  
                 services provided to enrollees.  However, another  
                 provision requires the broker to submit billing summaries  
                 to Medi-Cal, aggregating the cost for services provided.   
                 This provision may be an impediment to meeting the  
                 requirements for enhanced match for both managed care and  
                 FFS as it will not allow for the accounting required to  
                 claim as an administrative expenditure.  

              b)   Certifying body for CCMIs  . This bill requires SPB to  
               serve as the CCMI certifying body. The Governor's  
               Reorganization Plan 1 consolidated SPB and the DPA into a  
               single agency known as CalHR.  Prior to the consolidation  
               of the SPB and DPA into the new CalHR, SPB was charged with  
               providing testing for administrative hearing and medical  
               examination interpreters, as well as, maintaining and  
               publishing a list of interpreters to be utilized by the  
               departments when needed.  While under SPB's purview, SPB  








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               contracted with Cooperative Personnel Services (CPS) to  
               administer the examination at a cost that eventually  
               escalated to $250,000 a year.  SPB has indicated that when  
               it could no longer afford the program in 2008, it canceled  
               its contract with CPS and took over the role of simply  
               maintaining the list of interpreters by collecting renewal  
               fees and providing the list to departments on a yearly  
               basis.  The current fee for renewal is $100 per year.  SPB  
               indicates a test has not been administered since 2008 and  
               the list of interpreters remains the same assuming the  
               individuals on the list annually renew their registration  
               fees. 

                i)     Role of SPB  .  The Brown Administration is sponsoring  
                 AB 1376 ( Roger Hernández) that would eliminate the role  
                 of SPB and CalHR in maintaining the published list of  
                 certified administrative hearing and medical examination  
                 interpreters and repeal the annual fee interpreters  
                 previously paid to be included on the list.  AB 1376  
                 would instead grant authority to each department that is  
                 subject to language assistance the ability to qualify and  
                 retain interpreters as needed.  Depending on the outcome  
                 of AB 1376, the author may want to consider placing the  
                 authority with DHCS as this is a potential conflict that  
                 will need to be resolved. 

                ii)    Selection of non-profit  .  This bill requires SPB to  
                 select a non-profit organization with input from  
                 stakeholders.  The responsibilities include training and  
                 exam administration.  However, the bill is silent with  
                 regard to the qualifications.  In determining which  
                 entity has the ultimate responsibility, the author may  
                 also want to provide further details.  For example,  
                 Washington has a State run Language Testings and  
                 Certification program and the brokers are described as  
                 language services agencies.  In Oregon, the Oregon Office  
                 of Multicultural Health released Standards for  
                 Registration, Qualification and Certification of Health  
                 Care Interpreters.  Indiana charged an independent  
                 commission with developing standards for training and  
                 practice.  

              c)   Technical Amendments  .  

               i)     This bill's references to SPB and DPA need to be  








                                                                  AB 1263
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                 conformed to the current organization. 

               ii)    This bill makes the registry effective January 1,  
                 2014 and requires individuals with specified  
                 qualifications to be certified and placed on the registry  
                 in order to meet anticipated demand.  The listed  
                 qualifications do not include passing the exam  
                 established by this bill.  However another provision  
                 provides that commencing July1, 2014, Spanish-language  
                 interpreters shall be required to pass the exam and be  
                 listed on the registry.  It is not clear whether the exam  
                 requirement also applies to the specified individuals  
                 listed after that date.  

           10)DOUBLE REFERRED  .  This bill has been double-referred to the  
            Assembly Public Employees and Retirement System (PERS)  
            Committee.  Should this bill pass out of the Assembly Health  
            Committee, the provisions within the jurisdiction of the PERS  
            Committee will be considered in that committee. 

           
          REGISTERED SUPPORT / OPPOSITION :  

           Support 
           
          Access California Services, Anaheim
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          Asian American Center for Advancing Justice
          Asian Americans for Civil Rights & Equality
          Asian Pacific American Librarian Association, San Diego
          Asian Pacific Health Foundation, San Diego
          Bayside Community Center, San Diego
          Binational Center for the Development of Oaxacan Indigenous  
          Communities
          California Immigrant Policy Center
          Cambodian Buddhist Society of San Diego
          Campeonas de la Salud, San Jose
          Central American Refugee Committee, Oakland
          Chinese Service Center, San Diego
          Coalition for the Human Rights of Immigrants, Los Angeles
          Dolores Huerta Foundation
          East Bay Refugee Forum, Oakland
          East Bay Sanctuary Covenant, Berkeley
          Eastside Neighborhood Center of Catholic Charities








                                                                  AB 1263
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          Eastside Neighborhood Center, San Jose
          Greater Logan Heights Community Partnership, San Diego
          Healing Hope, Fresno
          Health Access California
          Hmong Women's Heritage Association, Sacramento
          Horn of Africa Community, San Diego
          Interpreting for California
          Khmer Girls in Action, Long Beach
          Korean American Senior Association of San Diego County
          Korean Community Services, Buena  Park
          La Maestra Community health Centers, San Diego
          Lao Community Action Network, Sacramento
          Little Saigon Foundation, San Diego
          Los Angeles County Federation of Labor, Los Angeles
          Low Income Self-Help Center
          Low Income Self-Help Center, San Jose
          National Association for the Advancement of Colored People, San  
          Diego
          National Hmong American Farmers, Fresno
          Operation Samahan, National City
          Russian Orthodox Church, San Diego
          San Diego LGBT Pride
          San Diego Vietnamese Club
          Services, Immigrants' Rights  and Education Network, San Jose
          Solami Family Services, San Diego
          Somos Mayfair
          Southern Sudanese Community Center, San Diego
          St. John's Wellness Center, Los Angeles
          Street Level Health Project, Oakland
          The Cambodian Family, Santa Ana
          Transnational Institute  for Grassroots Research and Action
          Transnational Institute for Grassroots Research and Action,  
          Oakland
          United Domestic Workers of America, AFSME Local 3930, AFL-CIO
          Viet-CARE, Westminster
          Vietnamese Community of San Diego
          Wat Lao Buddhavam of San Diego

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916)  
          319-2097 









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