BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                              Senator Mark Leno, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 94           Hearing Date:    June 18,  
          2015
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          |Author:   |Committee on Budget                                   |
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          |Version:  |January 7, 2015    >                                  |
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          |Urgency:  |Yes                    |Fiscal:    |Yes              |
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          |Consultant|Michelle Baass                                        |
          |:         |                                                      |
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                            Subject:  Budget Act of 2015


          Summary: This bill is the omnibus health trailer bill for 2015-16.  It  
          contains necessary changes related to the Budget Act of 2015.
          
          
          Proposed  
          Law:  This bill makes the following statutory changes to  
          implement the 2015-16 budget:

          1.Medi-Cal: Coverage for Undocumented Children. This bill would  
            provide Medi-Cal coverage to children who are otherwise  
            eligible for Medi-Cal except for their immigration status,  
            effective no sooner than May 1, 2016. 
          2.Medi-Cal: Elimination of Dental Provider Payment Reductions.  
            This bill would eliminate the ten percent Medi-Cal payment  
            reductions pursuant to AB 97 (Committee on Budget), Chapter 3,  
            Statutes of 2011, for dental providers effective July 1, 2015.

          3.Hepatitis C Linkage to and Retention in Care Projects. This  
            bill establishes  hepatitis C linkage to care demonstration  
            pilot projects for three years to allow for innovative,  
            evidence-based approaches to provide outreach, hepatitis C  
            screenings, and linkage to, and retention in, quality health  
            care for the most vulnerable and underserved individuals  
            living with or at risk for hepatitis C viral infection.

          4.Syringe Exchange Program. This bill authorizes the Department  







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            of Public of Health to purchase sterile hypodermic needles and  
            syringes, and other materials, for distribution to syringe  
            exchange programs.

          5.Pre-Exposure Prophylaxis (PrEP) Access and Outreach. This bill  
            establishes a PrEP navigator program to develop protocols to  
            conduct outreach to targeted populations, to provide PrEP  
            education to clients and to assess and refer to appropriate  
            clinical care and prevention services.

          6.Robert F. Kennedy Health Plan. This bill requires the  
            Department of Health Care Services (DHCS) to allocate $2.5  
            million Major Risk Medical Insurance Fund on a one-time basis  
            to the Robert F. Kennedy Health Plan for purposes of  
            purchasing stop loss insurance.

          7.LifeLong Community Clinic. This bill requires DHCS to allocate  
            $2 million Major Risk Medical Insurance Fund on a one-time  
            basis to the LifeLong Medical Care clinic in Contra Costa  
            County.


          8.Licensing and Certification Long-Term Care Facility Complaint  
            Investigation Timelines. This bill specifies that the  
            Department of Public Health is required to:
             a.   For complaints that involve a threat of imminent danger  
               or death or serious bodily harm that are received on or  
               after July 1, 2016, the department shall complete the  
               investigation within 90 days of receipt. This time period  
               may be extend up to an additional 60 days if the  
               investigation cannot be completed due to extenuating  
               circumstances. If there is an extension, the department  
               shall notify the facility and the complainant in writing of  
               this extension and the extenuating circumstances and  
               document the extenuating circumstances in its final  
               determination. Any citation issued as a result of the  
               complaint investigation shall be issued and served within  
               thirty days of the completion of the complaint  
               investigation.

             b.   For all other categories of complaints received on or  
               after July 1, 2017, the department shall complete the  
               investigation within 90 days of receipt. This time period  
               may be extend up to an additional 90 days if the  








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               investigation cannot be completed due to extenuating  
               circumstances. If there is an extension, the department  
               shall notify the facility and the complainant in writing of  
               this extension and the extenuating circumstances and  
               document the extenuating circumstances in its final  
               determination. Any citation issued as a result of the  
               complaint investigation shall be issued and served within  
               thirty days of the completion of the complaint  
               investigation.
                 
             c.   For all complaints received on or after July 1, 2018,  
               the department shall complete the investigation within 60  
               days of receipt. This time period may be extend up to an  
               additional 60 days if the investigation cannot be completed  
               due to extenuating circumstances. If there is an extension,  
               the department shall notify the facility and the  
               complainant in writing of this extension and the  
               extenuating circumstances and document the extenuating  
               circumstances in its final determination. Any citation  
               issued as a result of the complaint investigation shall be  
               issued and served within thirty days of the completion of  
               the complaint investigation.

             d.   Report on an annual basis (in the Licensing and  
               Certification Fee report) data on the department's  
               compliance these new timelines.

             e.   Beginning with the 2018-19 Licensing and Certification  
               November Program budget estimate, the department shall  
               evaluate the feasibility of reducing investigation  
               timelines based on experience implementing the timeframes  
               described above.  
            
              f.   States the intent of the Legislature that the department  
               continues to seek to reduce long-term care complaint  
               investigation timelines to less than 60 days with a goal of  
               meeting a 45-day timeline.  
            
           1.Hospital Complaint Investigation Notification. This bill  
            requires the Department of Public Health to notify the  
            hospital and complainant if any, if an investigation regarding  
            hospital complaints is not completed in the required  
            timeframe. This notification shall document the extenuating  
            circumstances as to why the investigation has not been  








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            completed and the anticipated completion date.
          2.Coordinated Care Initiative: Multipurpose Senior Services  
            Program (MSSP) Transition Timeline. This bill extends the date  
            in which MSSP transitions from a federal waiver to a managed  
            care benefit in the CCI counties. This bill extends the date  
            to December 31, 2017, but would allow an earlier transition in  
            a county or region when the MSSP site and managed care plan  
            mutually agree they are ready to transition, want to  
            transition early, and have demonstrated that they have met  
            readiness criteria. Existing law states that MSSP would  
            transition after 19 months of MSSP beneficiary enrollment into  
            managed care. This bill also specifies that if CCI is  
            terminated, MSSP would revert to a waiver benefit.

          3.CalHEERS Electronic MAGI Determination. This bill removes the  
            sunset provision to allow for continued electronic  
            verification of Medi-Cal eligibility information.

          4.Medi-Cal: Ground Emergency Medical Transportation Supplemental  
            Reimbursement Program. This bill modifies the existing ground  
            emergency medical transportation (GEMT) Supplemental  
            Reimbursement Program in order to maximize federal financial  
            participation for public GEMT provider's services, subject to  
            federal approval.

          5.Health Home Program. This bill provides the Department of  
            Health Care Services with the authority to establish a Health  
            Home Program (HHP) Account in the Special Deposit Fund within  
            the State Treasury in order to collect and allocate  
            non-General Fund public or private grant funds, to be expended  
            upon appropriation by the Legislature, for the purposes of  
            implementing the HHP pursuant to AB 361 (Mitchell), Chapter  
            642, Statutes of 2013. 

          6.Medi-Cal: Eliminate Nonemergency Emergency Room Copay. This  
            bill would eliminate the statutory references implementing a  
            nonemergency emergency room copay in Medi-Cal, as this policy  
            has been removed from the Medi-Cal budget. The budget removes  
            the assumption that the state would implement a copayment for  
            nonemergency emergency room usage pursuant to AB 97 (Committee  
            on Budget), Chapter 3, Statutes of 2011 and AB 1467 (Committee  
            on Budget), Chapter 23, Statutes of 2012 which was expected to  
            result in about $34 million ($17 million General Fund)  
            savings. This copay has never been implemented as it had not  








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            received approval from the federal Centers for Medicare and  
            Medicaid. 

          7.Medi-Cal: County Eligibility Administration Cost-of-Living  
            Adjustment (COLA). This bill suspends the COLA for county  
            eligibility administration for 2015-16.
          8.Limited Benefit and Special Populations Programs Enroller  
            Education. This bill requires enrolling providers who  
            participate in Every Woman Counts (EWC), Family Planning  
            Access Care and Treatment (FPACT), and IMProving Access,  
            Counseling, and Treatment for Californians with Prostate  
            Cancer (IMPACT), to provide to the enrolling individuals,  
            information on how to apply for insurance affordability  
            programs, in a manner determined by the Department of Health  
            Care Services (DHCS). 

          9.Child Health and Disability Prevention (CHDP) Program Dental  
            Referral. This bill requires CHDP programs and providers to  
            refer all Medi-Cal-eligible children participating in CHDP who  
            are one year of age and older to a dentist participating in  
            the Medi-Cal program, rather than at age three. 

          10.Food Safety Stipulated Judgment. This bill authorizes the  
            deposit into the Food Safety Fund of awards to the Department  
            of Public Health pursuant to court orders or settlements for  
            food safety-related activities.

          11.Genetic Disease Screening Program (GDSP) Prenatal Screening  
            Program. This bill clarifies that private health insurance  
            plans cannot consider the GDSP Prenatal Screening Program to  
            be an out-of-network provider.
           
           12.California Gambling Education and Treatment Services  
            (CalGETS). This bill deletes outdated verbiage related to the  
            CalGETS program.

          13.Investment in Mental Health Wellness Grants. This bill allows  
            the California Health Facilities Financing Authority to use up  
            to $3 million in unencumbered Mental Health Wellness Grant  
            funds, authorized by SB 82 (Committee on Budget and Fiscal  
            Review), Chapter 34, Statutes of 2013, for peer respite  
            programs.
          14.Clinical Laboratories Test Procedures. This bill authorizes  
            clinical laboratories to use the federally-approved equivalent  








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            quality control testing approach until December 31, 2015 and  
            individualized quality control plan commencing January 1, 2016  
            pursuant to the federal state operations manual adopted by the  
            federal Centers for Medicare and Medicaid Services.  

           15.Office of Systems Integration. This bill requires the Office  
            of Systems Integration to report to the Legislature by April  
            1, 2017 on the feasibility, benefits, costs, and risks of  
            installing the Modified Adjusted Gross Income (MAGI)  
            Eligibility Decision Engine in all, two, or just one of the  
            SAW Consortia systems.
          16.Covered California Regulatory Authority. This bill extends  
            Covered California's current emergency regulations rulemaking  
            authority for an additional year until January 1, 2017;  
            extends Covered California's ability to readopt emergency  
            regulations until January 1, 2020 for emergency regulations  
            adopted prior to the effective date of the Budget Act of 2015;  
            and  provides limited statutory exemptions from the  
            Administrative Procedure Act's (APA) rulemaking requirements  
            for (i) standard plan designs, and (ii) separate regulations  
            for each procurement.  

           17.ADAP Modernization. This bill updates financial eligibility  
            for AIDS Drug Assistance Program (ADAP) and the Office of AIDS  
            Health Insurance Premium Payment program to consider family  
            size and to increase the income limit of $50,000 for these  
            programs, which is estimated to be 447 percent federal poverty  
            level (FPL) to 500 percent FPL or $58,350 for a single  
            individual and $98,950 for a three-person household.  
           
          18.Medi-Cal: Enrollment Application Assistance Payments.  This  
            bill reallocates any remaining funds for Medi-Cal application  
            assistance payments, for eligible applications submitted  
            through June 30, 2015, to county outreach and enrollment  
            grants and to extend the date by which county outreach and  
            enrollment grant funds can be spent from June 30, 2016 to June  
            30, 2018.  
            
           19.Major Risk Medical Insurance Program (MRMIP). This bill  
            expedites the MRMIP and Guaranteed Issue Pilot (GIP)  
            reconciliation process.  
             

          Fiscal  








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          Effect:  This bill appropriates $50 million from the Health Home  
          Program Account to DHCS to implement the Health Home Program.
          

          
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