BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                        AB 50


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          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,      |                     |








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          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
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          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  








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            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  








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          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  








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          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