BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AB 211|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 211
          Author:   Gomez (D), et al.
          Introduced:2/2/15  
          Vote:     21  

           SENATE HUMAN SERVICES COMMITTEE:  3-1, 6/23/15
           AYES:  McGuire, Hancock, Liu
           NOES:  Nguyen
           NO VOTE RECORDED:  Berryhill

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 8/27/15
           AYES: Lara, Beall, Hill, Leyva, Mendoza
           NOES: Bates, Nielsen

           ASSEMBLY FLOOR:  58-20, 6/2/15 - See last page for vote

           SUBJECT:   In-home supportive services


          SOURCE:    UDW/AFSCME Local 3930 
          
          DIGEST:  This bill de-links the establishment of a statewide  
          public authority for the In-Home Supportive Services (IHSS)  
          program, and its associated bargaining functions, from other  
          provisions and timelines of the Coordinated Care Initiative  
          (CCI).

          ANALYSIS: 
          
          Existing law:

            1)  Establishes in state law a program of public Medi-Cal  
              benefits to provide health care for people who lack  
              sufficient annual income to meet the costs of health care,  
              and whose other assets are so limited that their application  








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              toward the costs of such care would jeopardize the person or  
              family's future minimum self-maintenance and security. (WIC  
              14000 et seq.)

            2)  Establishes the In-Home Supportive Services program to  
              provide domestic supportive and personal care services for  
              aged, blind or disabled individuals living at or below the  
              poverty level for the purpose of enabling consumers to avoid  
              institutionalization and remain safely in their homes. (WIC  
              12300 et seq.)

            3)  Requires each county to establish a public authority or  
              nonprofit consortium for providers of IHSS to establish a  
              registry to help consumers find workers, conduct background  
              checks of prospective workers, provide training and serve as  
              the employer of record for collective bargaining.  
              Establishes that IHSS recipients shall retain the right to  
              choose the individuals that provide their care and to hire,  
              fire, recruit, select, train, or reject any provider, as  
              specified. (WIC 12302.25 et seq.) 

            4)  Establishes the CCI in eight counties, an integrated  
              health and long-term managed care plan for individuals and  
              seniors and persons with disabilities who receive both  
              Medi-Cal and Medicare benefits, and includes IHSS within the  
              managed care plans. (WIC 14182.16, WIC 14186.35)

            5)  Predicates establishment of a statewide bargaining  
              authority, the California In-Home Supportive Services  
              Authority, upon the completed enrollment of each  
              demonstration county's CCI participants, and establishes  
              this may happen no sooner than March 2013. (WIC 12300.7 (a))

            6)  Deems inoperable the establishment of the statewide  
              bargaining authority and related authority to obtain  
              information about IHSS providers established in the CCI if  
              the CCI becomes inoperative. (GOV 6253.2) 

            7)  Creates an IHSS Maintenance Of Effort (MOE) requirement  
              for each county and provides that this MOE shall be counted  
              in lieu of the county's share of nonfederal costs of the  
              county services block grant and IHSS administration  








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              requirements. Requires that the MOE becomes inoperative if  
              the CCI is inoperative. (WIC 12306.15, 10101.1 (d), 12306  
              (f))

            8)  Provides that each county's share of the costs of  
              negotiated wage and benefit increases will remain during the  
              period in which a county's MOE exists, however the MOE share  
              will be in lieu of that share. Establishes that this becomes  
              inoperative if the CCI becomes inoperative. (WIC 12306.1 (g)  
              and (h))

            9)  Requires that participating managed health care plans  
              enter into an MOU with a county's public authority or  
              related organization when a demonstration county has  
              enrolled its eligible beneficiaries into the CCI. The MOU  
              must include an agreement to continue to perform assessments  
              and other specific activities. (WIC 14186.35) 

            10) Requires the state's Director of Finance to estimate the  
              amount of net General Fund Savings gained from implementing  
              the CCI and to suspend the CCI immediately if it is  
              determined that no savings will be generated, as specified.  
              Specifies which sections of statute shall be deleted if the  
              CCI is deemed inoperative and requires that the statewide  
              public authority cease to be the employer of record and the  
              counties resume that role. (Section 34, Chapter 37, statutes  
              of 2013)

           This bill:

            1)  Sets January 1, 2016, as the date that the California  
              In-Home Supportive Services Authority assumes responsibility  
              for statewide collective bargaining. 

            2)  Deletes the state's ability to eliminate the statewide  
              authority, including language identifying associated duties,  
              and to return the role of employer of record to the counties  
              should the CCI become inoperative.

            3)  Deletes the requirement to link the establishment of the  
              statewide authority to a county's implementation of the CCI,  
              and makes related language changes in numerous places in the  








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              statute. 

            4)  Deletes the requirement that the establishment of the  
              California In-Home Supportive Services Authority be tied to  
              the completed enrollment of beneficiaries into the CCI and  
              the notification of such by the director of the Department  
              of Health Care Services (DHCS), and deletes redundant  
              sections (WIC 12302.25, 12306.1) that have been replaced in  
              statute. 

            5)  De-links from the CCI the requirement that a county's IHSS  
              MOE can be counted in lieu of a county's share of cost of  
              negotiated wage and benefit increases. 

            6)  Eliminates the requirement to revert a county's MOE share  
              of cost to the original cost-sharing formula if the CCI is  
              inoperative.

            7)  Changes the required date for plans to establish an MOU  
              with county public authorities that transfers bargaining  
              responsibility to the statewide authority from the  
              implementation of the CCI in each county to January 1, 2016.  


            8)  Eliminates from the list of codes that shall be deleted if  
              the CCI becomes inoperative those codes that establish the  
              In-Home Supportive Services Employer-Employee Relations Act,  
              establish and define the duties of the statewide authority,  
              establish the IHSS Fund, which is used to fund the statewide  
              authority, require all counties to have a County IHSS MOE,  
              as specified.

          Background
          
          The Coordinated Care Initiative. The CCI was established in the  
          2012 Budget Act (SB 1036, Committee on Budget and Fiscal Review,  
          Chapter 45, Statutes of 2012) to integrate long-term services  
          and supports, including IHSS, into managed care. The intent of  
          the CCI was to bring dual eligible beneficiaries -- people who  
          qualify for both Medicare and Medi-Cal - into the same plan. In  
          California, there are about 1.1 million dual-eligible  
          beneficiaries; as many as seven in ten are age 65 and older, and  








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          most are women. About one-third are younger people with  
          disabilities. 

          Initially, the integration into managed care was anticipated to  
          begin in eight specified demonstration counties as early as  
          March 2013, with the intent to ultimately expand statewide. But  
          there have been delays in the implementation of the CCI, due in  
          part to delayed approval from the federal Centers for Medicaid  
          and Medicare Services (CMS). Seven counties remain in the pilot  
          program. San Mateo County transitioned to the Statewide  
          Authority in February 2015, followed by Los Angeles, Riverside,  
          San Bernardino and San Diego counties. Santa Clara County is  
          anticipated to transition January 2016 and finally Orange County  
          in August 2016. Alameda is no longer participating due to  
          concerns about one of its plans.

          Continued implementation of the CCI is statutorily dependent  
          upon an annual determination by the Department of Finance (DOF)  
          that there are net General Fund savings for CCI. If CCI is not  
          cost-effective, all components of CCI would cease operation.  
          According to DOF, several factors are threatening the solvency  
          of the CCI, and it could cease operations, effective January  
          2017. 

          1)More than 100,000 participants were exempted, including  
            Medicare Special Needs Plans and certain categories of  
            Medi-Cal beneficiaries based on age or health condition.

          2)Medicare and Medicaid savings were intended to be shared 50:50  
            with the federal government; however, the federal government  
            reduced the amount of savings California was allowed to retain  
            to approximately 25 to 30 percent.

          3)The federal government allowed a 3.975 percent tax on managed  
            care organizations through June 30, 2016 which is attributable  
            to the state's participation in the CCI demonstration.  
            However, recent federal guidance indicates that this tax will  
            not be allowed to continue in its current form, and a special  
            Legislative session has been convened to address methods to  
            fix the MCO tax.

          4)As of November, approximately 69 percent of eligible  








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            participants opted out of Cal MediConnect but initial  
            projections suggested just a 33 percent opt-out rate. Of those  
            that opted-out, about 80 percent are in the IHSS program.

          IHSS. The IHSS program is a county-administered Medi-Cal benefit  
          which provides low-income individuals who are aged, blind or  
          disabled with specified personal care and domestic services that  
          allow them to remain safely in their own homes and to avoid  
          institutionalization.

          IHSS services include tasks like feeding, bathing, bowel and  
          bladder care, meal preparation and clean-up, laundry, and  
          paramedical care. In an average month, about 462,000 recipients  
          received care from approximately 470,000 IHSS providers,  
          according to the Governor's budget. Nearly three-fourths of the  
          providers are family members and half live with the recipient. 

          Eligibility for IHSS is determined by county social workers who  
          conduct an in-home assessment, and periodic reassessments, of an  
          individual's ability to perform specific activities of daily  
          living. Recipients are responsible for hiring, firing, directing  
          and supervising their own IHSS provider or providers. The  
          counties or public authorities must conduct a criminal  
          background check and provide an orientation before a provider  
          can receive payment. In most counties, local public authorities  
          are designated as "employers of record" for collective  
          bargaining purposes, while the state administers payroll,  
          workers' compensation, and benefits. IHSS is funded through a  
          combination of federal, state, and county money. The state  
          historically has paid 65 percent and counties have paid 35  
          percent of the non-federal share of IHSS funding. The average  
          annual cost of services per IHSS client is estimated to be  
          around $14,217 ($1,185 per client per month) for 2015-16.

          Role of the Public Authority. In-home care was first provided in  
          California in the 1950s through grants to eligible consumers who  
          hired and paid their own providers. Over time, as the eligible  
          population grew along with the desire to keep individuals in the  
          most home-like setting, the IHSS program was developed and has  
          grown to the nation's largest program of its type. Initially,  
          care was provided by family members who received pay for a few  
          hours of service. In the late 1980s state law established a  








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          county's responsibility to create a local public authority or  
          non-profit consortium, which became a mandatory in 1999.

          Under the CCI, county public authorities will relinquish their  
          employer of record status to the statewide IHSS bargaining  
          authority, but will retain other duties, such as performing  
          background checks and creating a registry for consumers to find  
          appropriate caregivers. 

          This bill broadens the statewide authority that currently exists  
          within the CCI pilot counties to encompass all 58 counties.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to a Senate Appropriations Committee analysis, this  
          bill results in potential costs (General Fund) in the high tens  
          to hundreds of millions of dollars annually to the extent this  
          measure results in an increase in IHSS provider wages and health  
          benefits with the implementation of the Statewide Authority in  
          all 58 counties effective January 1, 2016. It projected annual  
          costs of about $6.9 million (50 percent General Fund, 50 percent  
          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,  
          and additional significant one-time General Fund costs to CalHR  
          for limited-term staff and overtime required to support the  
          workload imposed under the accelerated implementation date  
          mandated in this measure.




          The analysis noted that to the extent the CCI would have  
          otherwise become inoperative at some future date due to an  
          estimate by the Director of Finance that the CCI would not  
          generate net General Fund savings, as specified; the annual  
          costs noted above would continue to be incurred. The counties'  
          share of cost limited by the County IHSS MOE would not revert to  
          the original cost-sharing formula, and CalHR/DSS costs would  
          continue to support the activities of the Statewide Authority.








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          SUPPORT: (Verified 8/28/15)

          AFSCME
          California Labor Federation

          OPPOSITION: (Verified 8/28/15)
          
          Department of Finance


          ARGUMENTS IN SUPPORT:      According to the author, the 2012  
          statute that established the CCI also created a statewide  
          authority to transfer employer bargaining responsibility for the  
          IHSS program from the counties to the state. Under statute, only  
          the eight identified counties implementing the pilot project  
          would be included in the statewide authority, and only upon full  
          implementation of the CCI. The author states that at the time  
          the CCI statute was enacted, the Administration intended the CCI  
          to become operative in all 58 counties by 2015; however, due to  
          the unprecedented and complex nature of the CCI, it has  
          experienced numerous implementation delays. The author states  
          this bill is needed because there is no plan to transition  
          collective bargaining responsibilities to the statewide  
          authority in any of the remaining 51 counties.


          ARGUMENTS IN OPPOSITION:     The Department of Finance writes  
          that it is opposed to this bill because it would require the  
          state to implement collective bargaining in all 58, even if the  
          CCI were to become inoperative. The CCI is intended to be a  
          complete package of reforms designed to improve care  
          coordination for individuals who are eligible for benefits under  
          Medicare and Medi-Cal. Allowing statewide bargaining  
          responsibilities to function separately from the entirety of the  
          CCI erodes the comprehensive nature of the initiative and places  
          all fiscal risk of the CCI squarely on the state.

          ASSEMBLY FLOOR:  58-20, 6/2/15
          AYES:  Achadjian, Alejo, Bigelow, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley,  








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            Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina  
            Garcia, Eduardo Garcia, Gipson, Gomez, Gonzalez, Gordon, Gray,  
            Roger Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine,  
            Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina,  
            Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,  
            Thurmond, Ting, Weber, Williams, Wood, Atkins
          NOES:  Travis Allen, Baker, Brough, Dahle, Beth Gaines,  
            Gallagher, Gatto, Grove, Hadley, Harper, Jones, Kim, Mathis,  
            Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Wilk
          NO VOTE RECORDED:  Chávez, Waldron

          Prepared by:Mareva Brown / HUMAN S. / (916) 651-1524
          8/30/15 19:11:48


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