BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 461


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          ASSEMBLY THIRD READING


          AB  
          461 (Mullin)


          As Amended  April 21, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                     |Noes              |
          |----------------+------+-------------------------+------------------|
          |Health          |17-0  |Bonta, Maienschein,      |                  |
          |                |      |Bonilla, Burke, Chávez,  |                  |
          |                |      |Chiu, Gomez, Gonzalez,   |                  |
          |                |      |Lackey, Nazarian,        |                  |
          |                |      |Patterson,               |                  |
          |                |      |Ridley-Thomas,           |                  |
          |                |      |Rodriguez, Santiago,     |                  |
          |                |      |Thurmond, Waldron, Wood  |                  |
          |                |      |                         |                  |
          |----------------+------+-------------------------+------------------|
          |Appropriations  |17-0  |Gomez, Bigelow, Bloom,   |                  |
          |                |      |Bonta, Calderon, Chang,  |                  |
          |                |      |Daly, Eggman, Gallagher, |                  |
          |                |      |Eduardo Garcia, Holden,  |                  |
          |                |      |Jones, Quirk, Rendon,    |                  |
          |                |      |Wagner, Weber, Wood      |                  |
          |                |      |                         |                  |
          |                |      |                         |                  |
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          SUMMARY:  Authorizes a beneficiary receiving services through a  
          regional center who resides in the County of San Mateo to  








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          voluntarily enroll in the Cal MediConnect demonstration project  
          under the Coordinated Care Initiative (CCI), as specified. 
          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill has a negligible fiscal effect, given that  
          the impacted individuals currently incur costs as Medi-Cal  
          beneficiaries, and allowing them to enroll in a different delivery  
          system should not increase costs for their care. 


          COMMENTS:  According to the author, in San Mateo County, Health  
          Plan of San Mateo (HPSM) serves about 12,000 dual eligible  
          beneficiaries (beneficiaries eligible for both Medicare and  
          Medi-Cal) through its dual-eligible special needs plan (D-SNP),  
          the vast majority of whom transitioned into the CCI this year.   
          The author states that approximately 600 dually eligible  
          developmentally disabled individuals remain in the D-SNP; however,  
          HPSM may close its D-SNP due to the costly nature of running a  
          program for such a small population, leaving this population  
          without a health plan that would integrate and maximize Medi-Cal  
          and Medicare benefits.  The author concludes that by allowing this  
          population to voluntarily enroll in the CCI, HPSM will be able to  
          continue to provide them with the option of managed care.


          1)CCI.  The 2012 state budget authorized the CCI, a program  
            intended to integrate and coordinate the delivery of health  
            benefits, including behavioral health benefits and long-term  
            services and supports to dual eligibles and seniors and persons  
            with disabilities living in specified counties, including San  
            Mateo County.  The CCI includes the Cal MediConnect Program, a  
            three-year demonstration project designed to coordinate medical,  
            behavioral health, long-term institutional, and home- and  
            community-based services by combining Medicare and Medi-Cal  
            benefits into one integrated health plan.  Certain dual eligible  
            beneficiaries are not permitted to participate in Cal  
            MediConnect, including individuals with developmental  
            disabilities receiving services through a regional center.
          2)HPSM.  In certain counties, Medi-Cal managed care is operated by  
            a single County Organized Health System (COHS).  San Mateo  








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            County is a COHS county, and HPSM is the single plan to serve  
            all Medi-Cal beneficiaries enrolled in managed care.  As such,  
            HPSM operates the only Cal MediConnect plan called  
            CareAdvantage.  Passive enrollment into CareAdvantage commenced  
            in April 2014, and as of March 2015, 10,100 dual eligibles were  
            actively enrolled in Cal MediConnect.  San Mateo County has an  
            enrollment rate of 84%, with 13% of dual eligibles opting out of  
            Cal MediConnect, and 4% disenrolling from Cal MediConnect.  The  
            enrollment rate is significantly higher than any other CCI  
            county.


            HPSM also operates a D-SNP in which developmentally disabled  
            individuals receiving care from a regional center are enrolled.   
            A D-SNP is a type of Medicare Advantage plan that limits  
            membership to people with specific diseases or characteristics,  
            and tailor their benefits, provider choices, and drug  
            formularies to best meet the specific needs of the groups they  
            serve.  D-SNPs serve dual eligibles, and similar to Cal  
            MediConnect plans, D-SNPs combine Medicare and Medicaid benefits  
            into one plan.


            Under the CCI, D-SNPs operated by plans that also operate a Cal  
            MediConnect plan will be phased out.  In January 2015,  
            beneficiaries enrolled in a D-SNP operated by a Cal MediConnect  
            plan were transitioned into Cal MediConnect.  Additionally,  
            beneficiaries who are eligible for Cal MediConnect will not be  
            able to enroll in a D-SNP after January 2015.  


          SUPPORT.  HPSM supports this bill stating that it serves dual  
          eligibles, 600 of which are developmentally disabled and receive  
          care through its SNP.  HPSM states that the SNP is costly and  
          inefficient to operate for only 600 members, and it intends to  
          close the SNP in the next year or two, potentially leaving the 600  
          developmentally disabled members without a consolidated health  
          plan to maximize Medi-Cal and Medicare benefits.  HPSM states that  
          this bill will correct this problem by allowing this special needs  








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          population to voluntarily enroll in Cal MediConnect.  According to  
          HPSM, this bill also enjoys the support of the local San Mateo  
          County disability rights community.


          Golden Gate Regional Center (GGRC), the regional center serving  
          San Mateo County,  and other supporters state that persons with  
          developmental disabilities who are enrolled in HPSM's D-SNP should  
          have the option to continue with HPSM through the CCI.  GGRC  
          states that the inability of these individuals to continue with  
          HPSM through the CCI would be extremely disruptive to their care,  
          and without the option for voluntary CCI enrollment created under  
          this bill, the alternative for these beneficiaries will be a  
          fragmented system between Medicare FFS and Medi-Cal through HPSM.


          OPPISITION.  There is no opposition on file.


          Analysis Prepared by:                     Kelly Green / HEALTH /  
          (916) 319-2097                                     FN: 0000223