BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 800
          Author:   Lara (D)
          Amended:  9/3/13
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 5/1/13
          AYES:  Hernandez, Anderson, Beall, De León, DeSaulnier, Monning,  
            Nielsen, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/13
          AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           SENATE FLOOR  :  39-0, 5/29/13
          AYES:  Anderson, Beall, Berryhill, Block, Calderon, Cannella,  
            Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,  
            Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,  
            Jackson, Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen,  
            Padilla, Pavley, Price, Roth, Steinberg, Torres, Walters,  
            Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Vacancy

           ASSEMBLY FLOOR  :  53-25, 9/9/13 - See last page for vote


           SUBJECT  :    Health care coverage programs:  transition

           SOURCE  :     Author


           DIGEST  :    This bill transfers specified employees of the  
          Managed Risk Medical Insurance Board (MRMIB) to the Department  
          of Health Care Services (DHCS) or the California Health Benefit  
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          Exchange (Exchange), now called Covered California, if any  
          statute dissolves or terminates MRMIB.  Requires DHCS to provide  
          the Exchange, or its designee, information about parents or  
          caretakers of children enrolled in the Healthy Families program  
          (HFP) or the targeted low-income Medi-Cal program in order to  
          conduct outreach to potentially eligible individuals.

           Assembly Amendments  :  (1) delete the requirement for DHCS to  
          provide Covered California, or its designee, with specified  
          contact information, and written and spoken languages of  
          individuals who are not enrolled in Medi-Cal but are the parents  
          or caretakers of children enrolled in the HFP or children being  
          transitioned to the Medi-Cal program; (2) make any permanent or  
          probationary civil service employee who is employed by MRMIB and  
          assigned to the Federal Temporary High Risk Pool whose function  
          ceases to immediately be transferred to the Exchange and to  
          retain his or her status, position, and rights pursuant to  
          existing law and the State Civil Service Act (SCSA); (3) require  
          if any statute dissolves or terminates MRMIB, any employee of  
          MRMIB who, immediately prior to the effective date of the  
          dissolution or termination of MRMIB was assigned to the federal  
          Temporary High Risk Pool to be transferred to the Exchange and  
          to retain his or her status, position, and rights pursuant to  
          existing law and the SCSA; (4) require, if any statute dissolves  
          or terminates MRMIB, an employee's applicable reinstatement  
          rights that would have applied to MRMIB, to instead apply to  
          DHCS; (5) require DHCS to prepare a report on the transfer of  
          employees and functions upon dissolution of MRMIB, as specified;  
          (6) delete the urgency clause; and (7) make other clarifying and  
          technical changes.

           ANALYSIS  :    

          Existing law:  

          1. Establishes Major Risk Medical Insurance Program (MRMIP)  
             administered by MRMIB to provide major risk medical coverage  
             to California residents who have been rejected for coverage  
             by at least one private health plan, or if the only private  
             health coverage that the applicant can secure would impose  
             substantial waivers or provide limited coverage or afford  
             coverage only at an excessive price.

          2. Requires MRMIB to cease to provide coverage through the  

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             Federal Temporary High Risk Pool on July 1, 2013, except as  
             required by the contract between MRMIB and the United States  
             Department of Health and Human Services, and at that time to  
             cease to operate the program except as required to complete  
             payments to, or payment reconciliations with, participating  
             health plans or other contractors, process appeals, or  
             conduct other necessary termination activities. 

          3. Creates the Exchange, as an independent state entity governed  
             by a five-member board, to be a marketplace for Californians  
             to purchase affordable, quality health care coverage, claim  
             advanceable premium tax credits and cost-sharing subsidies,  
             and as a way to meet the personal responsibility requirements  
             of the Affordable Care Act.  

          4. Establishes, under state and federal law, the Medicaid  
             program (Medi-Cal in California) as a joint federal and state  
             program offering a variety of health and long-term services  
             to low-income women and children, low-income residents of  
             long-term care facilities, seniors, and people with  
             disabilities.  Medi-Cal is administered by DHCS.

          This bill:

          1. Requires, in order to assist the Exchange, to conduct  
             outreach to individuals potentially eligible for insurance  
             affordability programs, DHCS to provide the Exchange, or its  
             designee, with the names, addresses, email addresses,  
             telephone numbers, or other contact information, and written  
             and spoken languages of individuals who are not enrolled in  
             Medi-Cal but are the parents or caretakers of children  
             enrolled in HFP or have been transitioned from HFP to its  
             replacement, the targeted low-income Medi-Cal program.  

          2. Makes any permanent or probationary civil service employee  
             who is employed by MRMIB and assigned to the Federal  
             Temporary High Risk Pool whose function ceases to immediately  
             be transferred to the Exchange and to retain his or her  
             status, position, and rights pursuant to existing law and the  
             SCSA.

          3. Requires, if any statute dissolves or terminates MRMIB, any  
             employee of MRMIB who immediately prior to the effective date  
             of the dissolution or termination of MRMIB was assigned to  

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             HFP, the Access for Infants and Mothers Program, the County  
             Health Initiative Matching Fund, or the MRMIP to be  
             transferred to DHCS and to retain his or her status,  
             position, and rights pursuant to existing law and the SCSA.

          4. Requires if any statute dissolves or terminates MRMIB, any  
             employee of MRMIB who, immediately prior to the effective  
             date of the dissolution or termination of MRMIB was assigned  
             to the Federal Temporary High Risk Pool to be transferred to  
             the Exchange and to retain his or her status, position, and  
             rights pursuant to existing law and the SCSA.

          5. Requires, if any statute dissolves or terminates MRMIB, an  
             employee's applicable reinstatement rights that would have  
             applied to MRMIB, to instead apply to DHCS.

          6. Requires DHCS to prepare a report on the transfer of  
             employees and functions upon dissolution of MRMIB by February  
             1 of the year following the year in which employees are  
             transferred with a follow up report each of the two years  
             following the submission of the report.

           Comments 

           Shift of HFP children to Medi-Cal  .  AB 1494 (Assembly Budget  
          Committee, Chapter 28, Statutes of 2012) a health budget trailer  
          bill, requires the transition of children in HFP to Medi-Cal. 

          The state is currently in the middle of transitioning children  
          enrolled in the HFP into Medi-Cal.  The first phase of the  
          transition began January 1, 2013, and included children in a HFP  
          health plan that matches a Medi-Cal managed care (MCMC) health  
          plan.  Phase 2 began April 1, 2013, and affects children in an  
          HFP health plan that is a subcontractor of a MCMC health plan.  
          Phase 3 is scheduled to begin no sooner than August 1, 2013, and  
          transitions children enrolled in an HFP plan that is not a MCMC  
          plan and does not contract or subcontract with a MCMC plan into  
          a MCMC plan in that county.  The final phase begins no earlier  
          than September 1, 2013, and transitions children in HFP residing  
          in a county that is not MCMC into the Medi-Cal fee-for-service  
          delivery system.

          Depending upon their income, the parents of children enrolled in  
          Medi-Cal will be eligible for either Medi-Cal or premium and  

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          cost-sharing subsidies in Covered California.

           HIPAA and HFP  .  Under federal HIPAA privacy regulations, a  
          HIPAA-covered entity is prohibited from using or disclosing  
          protected health information without an authorization that is  
          valid, with specified exceptions.  One exception to this HIPAA  
          prohibition against the disclosure of protected health  
          information is if a HIPAA-covered entity is required to use or  
          disclose protected health information by law, and the use or  
          disclosure complies with and is limited to the relevant  
          requirements of such law.  This bill places such a requirement  
          on MRMIB to transfer information about the parents and caretaker  
          relatives of HFP subscribers and applicants to Covered  
          California for purposes of having Covered California conduct  
          outreach to these individuals. 

           Prior Legislation
           
          AB 714 (Atkins, of 2011) would have required notices of health  
          care eligibility be sent to individuals who are enrolled in, or  
          who cease to be enrolled in, publicly-funded state health care  
          programs.  AB 714 was held on the Senate Appropriations  
          Committee suspense file.

          AB 792 (Bonilla, Chapter 851, Statutes of 2012) establishes  
          notification requirements about the availability of reduced-cost  
          coverage available in the Covered California and no-cost  
          coverage available in Medi-Cal to an individual filing a  
          dissolution or nullity of marriage, divorce or separation, or  
          petitioning for adoption, and for an individual who ceases to be  
          enrolled in health coverage through a health plan or health  
          insurer.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee:


             Minor administrative costs to DHCS and/or the MRMIB to  
             provide contact information (General Fund).



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             Likely costs in the low hundreds of thousands for the  
             Covered California to contact parents and caretakers (federal  
             funds).

             Potential increased costs in the Medi-Cal program in the  
             millions to low tens of millions (federal funds) for one  
             year.

           SUPPORT  :   (Verified  5/24/13) (Unable to reverify at time of  
          writing)

          Autism Deservers Equal Coverage
          California Pan Ethnic Health Network
          California Welfare Directors Association
          Health Access California
          SEIU Local 1000
          Western Center on Law and Poverty

           ARGUMENTS IN SUPPORT  :    Health Access, a statewide health care  
          consumer advocacy coalition, and Western Center on Law and  
          Poverty write in support of this bill.  Proponents argue this  
          bill requires DHCS services to provide information about parents  
          of HFP eligible-children to Covered California, and Covered  
          California would then facilitate outreach to them about new  
          coverage options.


           ASSEMBLY FLOOR  :  53-25, 9/9/13
          AYES:  Alejo, Ammiano, Atkins, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier,  
            Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger  
            Hernández, Holden, Jones-Sawyer, Levine, Lowenthal, Medina,  
            Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel  
            Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone,  
            Ting, Weber, Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,  
            Linder, Logue, Maienschein, Mansoor, Melendez, Morrell,  
            Nestande, Olsen, Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Vacancy, Vacancy


          JL:RM:d:n  9/9/13   Senate Floor Analyses 

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                           SUPPORT/OPPOSITION:  SEE ABOVE

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