BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1089|
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                                       CONSENT


          Bill No:  SB 1089
          Author:   Mitchell (D)
          Amended:  As introduced
          Vote:     21


           SENATE HEALTH COMMITTEE  :  8-0, 3/26/14
          AYES:  Hernandez, Anderson, Beall, De León, DeSaulnier, Evans,  
            Monning, Wolk
          NO VOTE RECORDED:  Nielsen

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Medi-Cal:  juvenile inmates

           SOURCE  :     Los Angeles County Board of Supervisors


           DIGEST  :    This bill makes clarifying changes to provisions  
          requiring the Department of Health Care Services (DHCS) to  
          develop a process to allow counties to receive federal Medicaid  
          funds to inpatient services provided to otherwise  
          Medi-Cal-eligible juvenile inmates admitted as inpatients in a  
          medical institution off the grounds of the correctional  
          facility.

           ANALYSIS  :    

          Existing law:

          1.Establishes the Medi-Cal program, which is administered by  
            DHCS, under which qualified low-income individuals, including  
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            children ages 0 to 19, receive health care services.

          2.Requires, pursuant to AB 396 (Mitchell, Chapter 394, Statutes  
            of 2011) DHCS to develop a process to allow counties to  
            receive any available federal financial participation for  
            acute inpatient hospital services and inpatient psychiatric  
            services provided to juvenile inmates who are admitted as  
            inpatients in a medical institution off the grounds of the  
            correctional facility, and who, but for their institutional  
            status as inmates, are otherwise eligible for Medi-Cal  
            benefits.

          3.Prohibits the provisions in AB 396 from being construed to  
            alter or abrogate any obligation of the state pursuant to an  
            administrative action or a court order that is final and no  
            longer subject to appeal to fund and reimburse counties for  
            any medical services provided to a juvenile inmate.

          4.Implements the provisions in AB 396 only in those counties  
            that elect to provide the non-federal share of the state's  
            administrative costs associated with implementation of this  
            requirement, and the non-federal share of expenditures for  
            acute inpatient hospital services and inpatient psychiatric  
            services provided to eligible juvenile inmates.

          This bill:

          1.Clarifies that counties that implement AB 396 are only  
            required to provide their "pro rata portion" of the  
            non-federal share of the state's administrative costs, instead  
            of the non-federal share of the state's administrative costs.

          2.Prohibits a specific section of AB 396, rather than a specific  
            subsection of that bill, from being construed to alter or  
            abrogate any obligation of the state to reimburse counties  
            under the process established by AB 396.

          3.Limits a provision of AB 396 to the state's obligation to just  
            "reimburse" counties (rather than "fund and reimburse") and  
            limits the services under       AB 396 to "acute inpatient  
            hospital services or inpatient psychiatric services" provided  
            to a juvenile inmate, rather than the broader "medical  
            services." 


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          4.States legislative intent that implementation of the  
            provisions of AB 396 will result in no increased cost to the  
            state General Fund, and alters the uncodified intent language  
            of AB 396 to reflect the change made in (2) above.

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

           SUPPORT  :   (Verified  4/7/14)

          Los Angeles County Board of Supervisors (source)
          California Mental Health Directors Association
          California Psychiatric Association
          California State Association of Counties
          Department of Health Care Services
          Urban Counties Caucus

           ARGUMENTS IN SUPPORT  :    This bill is sponsored by the Los  
          Angeles County Board of Supervisors (LA County), which writes  
          this bill is a technical clean-up measure to AB 396 that  
          contains clarifying language requested by DHCS to reaffirm that  
          if counties choose to participate in the program established by   
            AB 396, they will pay their pro rata share of the state's  
          administrative costs.  LA County indicates DHCS requested the  
          additional intent language to further protect the state's  
          General Fund.

          DHCS writes that this bill provides clean-up language to make  
          technical and clarifying changes that the scope of services  
          under the AB 396 process is limited to acute inpatient hospital  
          and inpatient psychiatric services, emphasizing the  
          Legislature's intent that the implementation of the AB 396  
          process will result in no increased cost to the state General  
          Fund and that it agrees with LA County's intent that each county  
          will only pay its pro-rata share of the state's administrative  
          expenses.
          

          JL:e  4/8/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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