BILL ANALYSIS Ó AB 294 Page 1 Date of Hearing: April 7, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 294 (Lackey and Steinorth) - As Amended March 23, 2015 SUBJECT: Health and human services: state plans: federal waivers: public notice. SUMMARY: Requires any department within the California Health and Human Services Agency (CHHSA) to post on the first page of its website information about any federally approved state plan or waiver of federal laws or regulations. EXISTING LAW: 1)Creates the CHHSA with its 10 constituent departments and a number of other offices and entities. 2)Requires or authorizes state agencies to develop state plans and waiver proposals for submission to the federal government, consistent with federal law. Existing federal law provides for required state plans to implement federal programs and grants federal agencies authority in specified circumstances to waive applicable portions of federal law. In particular, states may be granted waivers of federal law to implement demonstration projects in their Medicaid programs. AB 294 Page 2 FISCAL EFFECT: This bill has not been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, this bill will increase transparency for programs administered within CHHSA. Many of these programs are federal programs partially or fully funded with federal funds and operating under federal requirements. According to the author, frequently the federal government will require the designated state agency to submit a state plan for the operation of the program. In addition, states often obtain federal waivers as they test more innovative approaches to implementing federal law. The author argues this bill would increase transparency and government accountability for these programs by requiring that the administering departments within CHHSA place a copy of the approved state plans and waivers on the front page of the department's Website. The author concludes that this will allow the public to gain knowledge of the programs and improve CHHSA's abilities to provide critical services to Californians. 2)SUPPORT. According to the Coalition of California Welfare Rights Organizations, this bill's sponsor, is needed because in certain cases the only way for the public to access the details of a federal waiver is through a public information request. The supporters note that this bill would not only improve transparency to the public, but also save valuable resources for departments by taking away the need for public information requests. Supporters also note that some departments within CHHSA already post approved waivers on their Websites, such as Department of Health Care Services (DHCS) which posts Medi-Cal waivers, however, other departments such as Department of Social Services do not post AB 294 Page 3 waivers. The Western Center on Law and Poverty (WCLP) supports this bill, noting that the plans and waivers are available through public records act requests but are not readily accessible to the public. WCLP argues that this bill will make these documents more accessible to the public and make these government programs more transparent and work better for the people they serve. 3)BACKGROUND. Of particular importance for health policy, is the proposed Medicaid waiver request for the Medi-Cal program. Medicaid (known as Medi-Cal in California) is a joint federal-state program to provide health coverage to low-income individuals. Section 1115 of the federal Social Security Act (Act) gives the Secretary of the federal Department of Health and Human Services (HHS) authority to waive provisions of major health and welfare programs authorized under the Act. This includes certain federal Medicaid requirements in any experimental pilot or demonstration project which, in the judgment of the HHS Secretary, is likely to assist in promoting the objectives of Medicaid. In addition, Section 1115 also allows states to use federal Medicaid funds to reimburse for costs in ways that are not otherwise allowed under federal Medicaid law. DHCS has submitted a waiver application to the federal government for consideration. 4)Suggested Technical Amendment. The proposed technical amendment would clarify that all plans and waivers could be accessed by one link and change "first" page to "home" page. AB 294 Page 4 Section 135: If a department within the California Health and Human Services Agency has received approval of an operational state plan by a federal agency, or has applied and has been approved for a waiver from a federal law or regulation, the department shall make any and all approved plans or waiver applicationsthe approved plan or waiver applicationavailable to the public by publishing a hyperlink to that information on thefirsthome page of the department's Internet Web site at the time the department is otherwise updating its Internet Web site. Section 3500: If a department within the California Health and Human Services Agency has received approval of an operational state plan by a federal agency, or has applied and has been approved for a waiver from a federal law or regulation, the department shall make any and all approved plans or waiver applicationsthe approved plan or waiver applicationavailable to the public by publishing a hyperlink to that information on thefirsthome page of the department's Internet Web site at the time the department is otherwise updating its Internet Web site. 5)RELATED LEGISLATION. a) AB 72 (Bonta), requires DHCS to submit an application to the federal Centers for Medicare and Medicaid Services for a waiver to implement a demonstration project that furthers the delivery of high-quality and cost-efficient care for Medi-Cal beneficiaries. AB 72 is pending in this AB 294 Page 5 Committee. b) SB 36 (Ed Hernandez) is substantially similar to AB 72 and is pending in the Senate Committee on Health. REGISTERED SUPPORT / OPPOSITION: Support Coalition of California Welfare Rights Organizations (sponsor) California Alternative Payment Program Association The Alliance Western Center on Law and Poverty Opposition None on file. AB 294 Page 6 Analysis Prepared by:Roger Dunstan / HEALTH / (916) 319-2097