BILL ANALYSIS                                                                                                                                                                                                    Ó



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        SENATE THIRD READING
        SB 77 (Budget and Fiscal Review Committee)
        As Amended  June 13, 2013
        Majority vote.  Budget Bill Appropriation Takes Effect Immediately

         SENATE VOTE  :Vote not relevant  
         
         SUMMARY  :  This is the Omnibus Health Trailer Bill for 2013-14.  It  
        contains necessary changes related to the Budget Act of 2013.  This  
        bill makes various statutory changes to implement the 2013-14  
        Budget.  Specifically,  this bill  :

        1)Provides for the continuation of Medi-Cal coverage for Foster Care  
          Youth who turn 21 between July 1, 2013, and December 31, 2013, for  
          $900,000 General Fund.  Effective January 1, 2014, per the federal  
          Affordable Care Act (ACA), these young adults will remain eligible  
          for Medi-Cal until age 26. 

        2)Exempts preventative services and adult vaccines from cost-sharing  
          in order for the state to be eligible for enhanced federal funding  
          under the ACA. This provides for $7.5 million General Fund (GF)  
          savings.

        3)Requires the Department of Health Care Services (DHCS) to accept a  
          grant from the California Endowment for Medi-Cal Enrollment  
          Assistance ($14 million) and Medi-Cal Outreach and Enrollment  
          Grants to Community-Based Organizations ($12.5 million) and obtain  
          $26.5 million in matching federal funds for these purposes. 

        4)Restores, in part, Medi-Cal Adult Dental Benefits effective May 1,  
          2014, for $55.3 million ($16.9 million General Fund).  This  
          partial restoration includes preventive/diagnostic services,  
          restoration services (amalgams, composite and stainless steel  
          crowns), and full mouth dentures.   

         5)Restores Medi-Cal enteral nutrition benefits starting May 1, 2014,  
          for $3.4 million ($1.7 million GF).   

         6)Eliminates the seven visit cap on physician and clinic visits in  
          Medi-Cal, which has yet to receive federal approval or to be  
          implemented.  

         7)Extends the time period for which laboratory service providers  
          have to submit data reports specifying their lowest amounts other  








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          payers are paying.  This is necessary as the process to develop  
          the new rate methodology has taken longer than anticipated.  

         8)Eliminates the sunset date for specialty provider contracting.   
          The elimination of this sunset date achieves ongoing $6.9 million  
          GF savings.  

         9)Requires DHCS to post on its Web site proposed State Plan  
          Amendments (SPAs), waiver amendments, and waiver renewals that it  
          has submitted to the federal government.  This would provide  
          legislative staff and stakeholders with the opportunity to review  
          and comment on the state's implementation of policy.  

         10)Transfers mental health facility licensing and quality  
          improvement functions from the Department of Social Services to  
          DHCS.  

         11)Incorporates the measuring and evaluating of Medi-Cal managed  
          care plans' screenings for mental health needs and their referrals  
          for these services (to both Medi-Cal fee-for-service providers and  
          county mental health plans) into the Early and Periodic Screening,  
          Diagnosis, and Treatment (EPSDT) performance outcome system.   
          Requires stakeholder involvement in this effort, and requires the  
          department to develop a plan for the incorporation of these  
          factors into the outcome system, due to the Legislature by October  
          1, 2014.  

         12)Requires DHCS to consult with stakeholders prior to the submittal  
          of the Behavioral Health Services Plan to the federal government.  

         13)Adopts technical amendments to ensure the cost neutrality of SB  
          1462 (Leno), Chapter 837, Statutes of 2012, which provides  
          Medi-Cal coverage to eligible county inmates on medical parole and  
          inmates granted compassionate release.  

         14)Transitions Access for Infants (AIM)-linked infants, born to  
          women whose income is between 250 and 300% of the federal poverty  
          level, from the Healthy Families Program to DHCS.  

         15)Ends the Managed Risk Medical Insurance Board's (MRMIB's)  
          responsibility regarding the Pre-Existing Condition Insurance Plan  
          (PCIP) effective July 1, 2013, as the federal government will take  
          over administration of this program.  









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         16)Extends the date in which MRMIB can subsidize the premium  
          contributions paid to individuals receiving coverage in Managed  
          Risk Medical Insurance Program (MRMIP).  This change is necessary  
          as MRMIP will remain a program beyond December 31, 2013.  

         17)Defines and clarifies the purpose and structure of the Safe  
          Cosmetics Program Web site and requires that the Web site be  
          operational by December 31, 2013.

        18)Requires the Department of Public Health (DPH) to report to the  
          Legislature if the assumptions it used to determine the transition  
          of AIDS Drug Assistance Program (ADAP) clients to Low Income  
          Health Programs may result in an inability to provide ADAP  
          services to eligible ADAP clients. 

        19)Requires DPH to submit a plan to the Legislature on how it will  
          address the findings and recommendations from its review of the  
          BabyBIG program to ensure that an adequate supply of the vaccine  
          is available to meet demand. 

        20)Reappropriates approximately $1 million in federal funds to the  
          Department of Managed Health Care for purposes of continuing  
          operation of consumer assistance programs to help uninsured  
          individuals obtain health coverage.

        21)Contains an appropriation allowing this bill to take effect  
          immediately upon enactment.

         COMMENT  :  This bill is a budget trailer bill within the overall  
        2013-14 budget package to implement actions taken affecting the  
        Departments of Health Care Services, Managed Health Care, Public  
        Health, and Social Services, the Managed Risk Medical Insurance  
        Board, and the Mental Health Services Oversight and Accountability  
        Commission.


         Analysis prepared by  :   Andrea Margolis / BUDGET / (916) 319-2099


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