BILL ANALYSIS Ó AB 211 Page 1 Date of Hearing: April 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 211 (Gomez) - As Introduced February 2, 2015 ----------------------------------------------------------------- |Policy |Human Services |Vote:|6 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill delinks implementation of statewide collective bargaining authority for the In-Home Support Services (IHSS) program from the state's Coordinated Care Initiative (CCI) and implements it separately under the new statewide California IHSS Authority (Statewide Authority) beginning January 1, 2016. Specifically, this bill: AB 211 Page 2 1)Requires the Statewide Authority to assume collective bargaining responsibility for IHSS providers in all 58 counties beginning January 1, 2016, rather than in the eight counties participating in the CCI demonstration project. 2)Makes the Statewide Authority permanent by deleting the statute making statewide collective bargaining conditional upon implementation of the CCI. 3)Deletes the authority of the Director of Finance to halt implementation of the CCI, and therefore statewide collective bargaining by the Statewide Authority, if the director determines that the CCI will not generate anticipated General Fund (GF) savings. 4)Makes permanent, through the separation of statewide collective bargaining authority for IHSS, the IHSS Maintenance of Effort (MOE) requirement for all counties in lieu of their share of non-federal costs, as well as the inclusion of a county's IHSS MOE when calculating that county's share of cost of negotiated wage and benefit increases. FISCAL EFFECT: 1)Potentially major ongoing costs (GF) in the tens of millions of dollars to the extent the provisions of this bill result in an increase in IHSS provider wages and health benefits with the implementation of the Statewide Authority in all 58 counties. Only those wage and benefit increases that are AB 211 Page 3 locally negotiated or imposed before the Statewide Authority assumes employer responsibility result in an adjustment to the County IHSS MOE. Thus, any increases negotiated by the Statewide Authority do not require a county share of costs. The nonfederal share of the increase will be fully funded by the state, resulting in ongoing costs to the GF. 2)Annual costs in the range of $7 million (50% GF, 50% federal funds) to the Department of Human Resources (CalHR) to implement and operate a collective bargaining platform on behalf of the Statewide Authority expanded to cover all 58 counties. COMMENTS: 1)Purpose. While the statute creating the CCI anticipated a fairly seamless roll-out within the eight demonstration counties, there have been numerous implementation delays. As a result, five counties are still in the enrollment process, one county has not yet begun, and one county withdrew from the demonstration. Thus far, San Mateo is the only county to have completed enrollment and transitioned to collective bargaining under the Statewide Authority. According to the author, this bill is necessary to shift to statewide collective bargaining for IHSS providers despite delays in the implementation of the CCI. The bill makes this shift for all 58 counties, not just AB 211 Page 4 the demonstration counties. The bill's co-sponsor, the American Federation of State and County Municipal Employees, notes that the implementation delays have delayed the transfer of collective bargaining to the state in all counties, and as a result, collective bargaining at the county level has either been delayed or met with reluctance to engage in bargaining when the transfer of responsibility is expected to be imminent. The sponsor writes that several counties have proposed one-year contract extensions, while others have opposed increases in IHSS spending because it would permanently increase the county's IHSS MOE. 2)Background. The Budget Act of 2012 enacted the CCI (also called Cal MediConnect), a framework for integrating delivery of medical, behavioral and long-term care services through a single health plan for persons eligible for both Medicare and Medi-Cal. The CCI was originally limited to eight demonstration counties: Alameda, Los Angeles, Orange, San Diego, San Mateo, Riverside, San Bernardino, and Santa Clara, in which approximately 65% of IHSS recipients reside. As part of the CCI, budget trailer bill language (SB 1036, Chapter 45, Statutes of 2012) shifted collective bargaining responsibilities in the demonstration counties from the county level to the new Statewide Authority. The CCI also created an IHSS MOE funding requirement for counties which replaced the previously existing county share of non-federal funding for IHSS. Under the demonstration project, the shift to the Statewide Authority is set to occur in each county once enrollment into managed care pursuant to the CCI has been completed in that county. According to the Department of Health Care Services (DHCS), this shift was scheduled to have occurred in April 2014. However, due to the unprecedented and complex nature of the CCI, it has experienced numerous AB 211 Page 5 implementation delays. Enrollment of the recipients into the CCI in six of the eight pilot counties will now be completed by July 2015. Enrollment has not yet begun in Orange County, and Alameda County withdrew from the CCI demonstration project in 2014. According to the author, in 2012, the Administration intended for the CCI to become operative in all 58 counties by 2015. However, there is no plan to transition collective bargaining responsibilities to the state level in any of the remaining 51 counties. 3)In-Home Supportive Services (IHSS). The IHSS program is a Medi-Cal benefit, which provides services that enable the recipient to remain in his or her home. The IHSS program provides personal care and domestic services to approximately 420,000 qualified, low-income individuals who are aged, blind, or disabled. County social workers determine IHSS eligibility and perform case management after conducting a standardized in-home assessment of an individual's ability to perform activities of daily living. Based on authorized hours and services, IHSS recipients are responsible for hiring, firing, and directing their IHSS provider(s). In the majority of cases, recipients choose a relative to provide care. IHSS is funded with federal, state, and county resources, and prior to implementation of the CCI demonstration project, (July 1, 2012) county public authorities or nonprofit consortia were designated as "employers of record" for collective bargaining purposes, while the state administered payroll and benefits. 4)Prior legislation. a) AB 485 (Gomez), 2014, was nearly identical to this bill. AB 485 died on the Assembly Floor, concurrence pending. AB 211 Page 6 b) SB 94 (Senate Budget and Fiscal Review Committee), Chapter 37, Statutes of 2013: Enacted changes to existing law regarding the CCI and de-linked CCI components to allow the mandatory enrollment of Medi-Cal and Medicare beneficiaries (dual eligibles) into Medi-Cal managed care, the integration of long-term services and supports into managed care plans, and the commencement of the IHSS Statewide Authority, to proceed separately from the CCI Duals Demonstration Project. c) SB 1036 (Senate Budget and Fiscal Review Committee), Chapter 45, Statutes of 2012: was the Human Services budget trailer bill that contained the necessary statutory changes to implement the human services provisions related to the integration of home and community based and long-term care services, including IHSS, into Medi-Cal managed care. d) SB 1008 (Senate Budget and Fiscal Review Committee), Chapter 33, Statutes of 2012: Implements the Duals Demonstration Pilot Projects, including integration of long-term services and supports. e) SB 208 (Steinberg), Chapter 714, Statutes of 2010: Implemented several changes to the Medi-Cal Program as proposed in the state's application to renew the state's Section 1115 Medicaid Waiver. Also gave DHCS the authority to establish the dual eligible beneficiary demonstration project to give those eligible for Medicare and Medi-Cal a continuum of services and maximize coordination of benefits. AB 211 Page 7 Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081