BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 211


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          Date of Hearing:  April 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          211 (Gomez) - As Introduced February 2, 2015


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          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:  









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          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  








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            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  








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            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  








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            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.








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             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.








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          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081