BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         AB 94|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  AB 94
          Author:   Committee on Budget  
          Amended:  6/16/15 in Senate
          Vote:     21  

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  11-5, 6/18/15
           AYES: Leno, Allen, Beall, Block, Hancock, Mitchell, Monning,  
            Pan, Pavley, Roth, Wolk
           NOES: Nielsen, Anderson, Moorlach, Nguyen, Stone

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   Health


          SOURCE:    Author


          DIGEST:  This bill is the omnibus health trailer bill, and  
          contains changes to implement the 2015-16 Budget.


          ANALYSIS: This bill makes the following statutory changes to  
          implement the 2015-16 Budget.  

          1) Medi-Cal: Coverage for Undocumented Children. This bill  
             provides 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 eliminates the 10% Medi-Cal payment reductions  
             pursuant to AB 97 (Committee on Budget, Chapter 3, Statutes  








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             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  
             of Public Health (DPH) 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 DPH 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  







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                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  
                30 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  
                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  
                30 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 30 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  







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                complaint investigation timelines to less than 60 days  
                with a goal of meeting a 45-day timeline.

          9) Hospital Complaint Investigation Notification. This bill  
             requires DPH 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 completed and the anticipated  
             completion date.

          10)Coordinated Care Initiative (CCI): 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 will 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.

          11)California Healthcare Eligibility, Enrollment, and Retention  
             System Electronic Modified Adjusted Gross Income (MAGI)  
             Determination. This bill removes the sunset provision to  
             allow for continued electronic verification of Medi-Cal  
             eligibility information.

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

          13)Health Home Program (HHP). This bill provides DHCS with the  
             authority to establish a 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). 







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          14)Medi-Cal: Eliminate Nonemergency Emergency Room Copay. This  
             bill eliminates 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 received approval from the federal  
             Centers for Medicare and Medicaid. 

          15)Medi-Cal: County Eligibility Administration Cost-of-Living  
             Adjustment (COLA). This bill suspends the COLA for county  
             eligibility administration for 2015-16.

          16)Limited Benefit and Special Populations Programs Enroller  
             Education. This bill requires enrolling providers who  
             participate in Every Woman Counts, Family Planning Access  
             Care and Treatment, and IMProving Access, Counseling, and  
             Treatment for Californians with Prostate Cancer, to provide  
             to the enrolling individuals, information on how to apply for  
             insurance affordability programs, in a manner determined by  
             DHCS. 

          17)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. 

          18)Food Safety Stipulated Judgment. This bill authorizes the  
             deposit into the Food Safety Fund of awards to DPH pursuant  
             to court orders or settlements for food safety-related  
             activities.

          19)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.

          20)California Gambling Education and Treatment Services  







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             (CalGETS). This bill deletes outdated verbiage related to the  
             CalGETS program.

          21)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.

          22)Clinical Laboratories Test Procedures. This bill authorizes  
             clinical laboratories to use the federally-approved  
             equivalent 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.

          23)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 MAGI Eligibility Decision Engine in all, two,  
             or just one of the SAW Consortia systems.

          24)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 rulemaking requirements for  
             (a) standard plan designs, and (b) separate regulations for  
             each procurement. 

          25)AIDS Drug Assistance Program (ADAP) Modernization. This bill  
             updates financial eligibility for 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% federal poverty level  
             (FPL) to 500% FPL or $58,350 for a single individual and  
             $98,950 for a three-person household. 

          26)Medi-Cal: Enrollment Application Assistance Payments.  This  







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             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.

          27)Major Risk Medical Insurance Program (MRMIP). This bill  
             expedites the MRMIP and Guaranteed Issue Pilot reconciliation  
             process.

          28)Appropriation.  This bill appropriates $50 million from the  
             HHP Account to DHCS to implement the HHP. 

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified6/17/15)


          None received


          OPPOSITION:   (Verified6/17/15)


          None received

           
          Prepared by:Michelle Baass / B. & F.R. / (916) 651-4103
          6/18/15 18:50:14


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