BILL ANALYSIS Ó AB 50 Page 1 ASSEMBLY THIRD READING AB 50 (Mullin) As Amended May 21, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+---------------------| |Health |16-0 |Bonta, Maienschein, | | | | |Burke, Chávez, Chiu, | | | | |Gomez, Gonzalez, | | | | |Lackey, Nazarian, | | | | |Patterson, | | | | |Ridley-Thomas, | | | | |Rodriguez, Santiago, | | | | |Thurmond, Waldron, | | | | |Wood | | | | | | | |----------------+------+---------------------+---------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | AB 50 Page 2 | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: This bill requires the Department of Health Care Services (DHCS) to develop a plan, in consultation with stakeholders, on or before January 1, 2017, to ensure that evidence-based home visiting programs, as defined, are offered and provided to Medi-Cal eligible pregnant and parenting women, as specified. It also requires DHCS, in developing the plan, to prioritize the identification of funding sources for home visiting services other than state General Fund, including local, federal, private, or other funds. FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)Costs to DHCS in the range of $200,000 to develop the specified plan in consultation with stakeholders. 2)Unknown, significant cost pressure to provide home visiting services through Medi-Cal FFS or managed care (unspecified local/private/potentially General Fund/federal funds). For example, if an additional 1,000 additional women were served, costs would be $5 million to $12 million for services, depending on the program model. Various home visiting program models may meet the bill's criteria. The funding source is not specified, but the author points out counties, managed care plans, hospitals, foundations, and local First 5 programs all may have interest in funding the program if a structure was in place to accommodate service delivery and leverage federal funds - meaning local or private funding AB 50 Page 3 coupled with federal funds may be a viable approach. The state is pursuing an 1115 waiver from the federal government, through which other states have received approval for federal matching funds for home visiting. 3)Home visiting programs have a strong evidence base of outcomes based on randomized controlled trials. To the extent the delivery of home visiting programs is expanded, and assuming the most successful programs are selected: a) Some level of reduced state costs associated with fewer pre-term deliveries, high-risk pregnancies, and childhood injuries in Medi-Cal, and likely reductions in beneficiaries of California Work Opportunity and Responsibility to Kids Program benefits based on better labor market outcomes and less welfare participation among service recipients. b) Cost savings may accrue to counties or school districts based on documented reductions in child abuse and fewer youth crimes, reduced youth substance abuse, and fewer remedial school services. COMMENTS: According to the author, this bill is necessary to increase accessibility for nurse led home visiting and help improve efficiency on this piece of our system of care. This bill helps to address the rising costs of Medi-Cal and potential burdens of rising Medi-Cal enrollment. With increased Medi-Cal enrollments come the societal savings, care coordination, case management, and healthcare outcomes that Nurse Family Partnership (NFP) and other evidence-based nurse home visiting programs, provide for the consistent solutions resonating among stakeholders. These measures will help improve Healthcare Effectiveness Data and Information Set measures, access to services, and reduce costs while further increasing savings. It is the responsibility of the Legislature and in the best interest AB 50 Page 4 of all California citizens to prioritize efficiency and effectiveness in the consideration of fiscal expenditures. The first California NFP implementing agencies were launched in 1996 in Fresno, Los Angeles, and Alameda Counties using Federal Department of Justice funding. The successful implementation of these initial NFP pilot sites demonstrated to other California communities that it was possible to replicate a scientific-based health strategy while also tailoring the program to meet the needs of each community. NFP seeks to continue to build new partnerships with medical managed care entities, school districts, military bases, clinics and hospitals in order to serve the thousands more eligible families in California that could benefit from NFP's evidenced-based outcomes model. The NFP sites in California have served approximately 9,000 families, of which the majority are Latino. The median age of the mothers is 18 years. Seventy-two percent are enrolled in Medi-Cal, and the median annual household income is $13,500. The California NFP has documented outcomes for enrollees, and demonstrated a 23% reduction in cigarette smoking during pregnancy. In addition, of those mothers who entered the program without a high school diploma or General Educational Development Test (GED), 42% had earned their diploma or GED, 25% continued to work toward their diploma or GED, and 15% were pursuing education beyond high school, by the time their infants were 24 months old. Children Now states in support that voluntary early childhood home visiting programs strengthen the critical parent-child relationship and connect families with information and resources during the pivotal time from pregnancy to age five. Extensive research has shown that voluntary home visiting programs increase family self-sufficiency, positive parenting practices, and maternal and child health. Children Now notes that nationally, as well as in California, there is a diverse array of home visiting AB 50 Page 5 program models in use, including both nationally-known, intensive program models, as well as locally designed programs intended to engage isolated populations or address other specific local priorities. This bill has no known opposition. Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097 FN: 0000648