BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 461    
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          |AUTHOR:        |Mullin                                         |
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          |VERSION:       |June 1, 2015                                   |
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          |HEARING DATE:  |June 10, 2015  |               |               |
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          |CONSULTANT:    |Scott Bain                                     |
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           SUBJECT  : Coordinated Care Initiative.

           SUMMARY  : Authorizes a Medi-Cal beneficiary receiving services through a  
          regional center or who is enrolled in a Medi-Cal home- and  
          community-based waiver who resides in San Mateo County to  
          voluntarily enroll in the CalMediConnect demonstration project  
          for individuals dually eligible for Medicare and Medi-Cal under  
          the Coordinated Care Initiative.

          Existing law:
          1)Establishes, under federal law, the Medicare program, which is  
            a public health insurance program for persons 65 years of age  
            and older and specified persons with disabilities who are  
            under the age of 65.



          2)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income individuals receive health care services,  
            including home- and community-based services (HCBS). 



          3)Requires DHCS to seek federal approval to establish a  
            demonstration project under a Medicare or a Medicaid  
            demonstration project or waiver. Authorizes DHCS, under a  
            Medicare demonstration, to contract with the federal Centers  
            for Medicare and Medicaid Services (CMS) and demonstration  
            sites to operate the Medicare and Medicaid benefits in a  
            demonstration project that is overseen by the state as a  
            delegated Medicare benefit administrator, and to enter into  
            financing arrangements with CMS to share in any Medicare  







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            program savings generated by the demonstration project. This  
            demonstration project is known as CalMediConnect.


          4)Requires DHCS, after federal approval is obtained, to  
            establish the CalMediConnect demonstration project that  
            enables dual eligible beneficiaries to receive a continuum of  
            services that maximizes access to, and coordination of,  
            benefits between the Medi-Cal and Medicare programs and access  
            to the continuum of long-term services and supports (LTSS) and  
            behavioral health services, including mental health and  
            substance use disorder treatment services. The purpose of this  
            demonstration project is to integrate services authorized  
            under Medi-Cal and Medicare.


          5)Requires CalMediConnect demonstration sites to be established  
            in up to eight counties, and to include at least one county  
            that provides Medi-Cal services via the two-plan model of  
            Medi-Cal managed care.


          6)Requires DHCS to enroll dual eligible beneficiaries into a  
            CalMediConnect demonstration site unless the beneficiary makes  
            an affirmative choice to opt out of enrollment, with specified  
            exceptions.



          7)Requires DHCS to require dual eligibles to be assigned as  
            mandatory enrollees into new or existing Medi-Cal managed care  
            health plans for their Medi-Cal benefits in Coordinated Care  
            Initiative (CCI) counties. CCI counties are the Counties of  
            Alameda, Los Angeles, Orange, Riverside, San Bernardino, San  
            Diego, San Mateo, and Santa Clara. Allows individuals to opt  
            out of Medi-Cal managed care for the Medicare portion of their  
            benefits.


          8)Excludes from enrollment in the CalMediConnect demonstration  
            project specified Medi-Cal beneficiaries, including  
            beneficiaries:

             a)   With a prior diagnosis of end-stage renal disease,  
               except where authorized by the DHCS director;








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             b)   With other health coverage;

             c)   Enrolled in a Medi-Cal home- and community-based waiver  
               that is a Medi-Cal benefit, beneficiaries receiving  
               services through a regional center or state developmental  
               center, except for persons enrolled in the Multipurpose  
               Senior Services Program;

             d)   Residing in a geographic area or ZIP Code not included  
               in managed care, as determined by DHCS and the federal  
               Centers for Medicare and Medicaid Services; and,

             e)   Residing in one of the Veterans' Homes of California.

          

          This bill: Authorizes a dually eligible Medi-Cal beneficiary who  
          resides in San Mateo County and who is receiving services  
          through a regional center or who is enrolled in a Medi-Cal home-  
          and community-based waiver to voluntarily enroll in the  
          CalMediConnect demonstration project.


           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. 

           PRIOR  
          VOTES :  
          
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          |Assembly Floor:                     |79 - 0                      |
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          |Assembly Appropriations Committee:  |17 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Health Committee:          |17 - 0                      |
          |                                    |                            |
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          COMMENTS  :
          1)Author's statement.  According to the author, AB 461 will  








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            allow dually eligible developmentally disabled individuals in  
            San Mateo County to voluntarily enroll in the Coordinated Care  
            Initiative. By allowing them to join CCI, Health Plan of San  
            Mateo (HPSM) will be able to continue providing them with the  
            option of managed care.

          2)CCI. The CCI is a program intended to integrate and coordinate  
            the delivery of health benefits, including behavioral health  
            benefits and LTSS to dual eligibles and seniors and persons  
            with disabilities (SPDs) living in seven California counties:  
            Los Angeles, Orange, Riverside, San Bernardino, San Diego, San  
            Mateo and Santa Clara (state law allows for CCI implementation  
            in eight counties, but CCI will not be implemented in Alameda  
            County). Goals for the CCI include coordinating Medi-Cal  
            benefits and Medicare benefits across health care settings and  
            improving continuity of acute care, long-term care, and HCBS,  
            coordinating access to acute and long-term care services for  
            dual eligibles, maximizing the ability of dual eligibles to  
            remain in their homes and communities with appropriate  
            services and supports in lieu of institutional care, and  
            increasing the availability of and access to home- and  
            community-based alternatives. The three major components of  
            the CCI are as follows:

             a)   CalMediConnect Program: A three-year demonstration  
               project designed to coordinate medical, behavioral health,  
               long-term institutional, and HCBS services for dual  
               eligibles by combining Medicare and Medi-Cal benefits into  
               one integrated health plan;



             b)   Mandatory enrollment of dual eligibles and Medi-Cal-only  
               seniors and persons with disabilities into Medi-Cal managed  
               care; and,



             c)   Managed Long-Term Supports and Services (MLTSS):  
               Integration of nursing facility care, In-Home Supportive  
               Services, Community-Based Adult Services, and Multipurpose  
               Senior Services Program as managed care benefits. 


          3)Health Plan of San Mateo. In twenty-two counties, Medi-Cal  








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            managed care is operated by one of six County Organized Health  
            System (COHS) plans. San Mateo County is a COHS county, and  
            HPSM is the single plan to serve all Medi-Cal beneficiaries  
            enrolled in managed care. HPSM operates the CalMediConnect  
            plan, which is called CareAdvantage. Passive enrollment into  
            CareAdvantage commenced in April 2014. HPSM indicates it has  
            approximately 10,300 dual eligibles actively enrolled in  
            CalMediConnect. San Mateo County has a much higher enrollment  
            rate (84 percent) in CalMediConnect, with 13 percent of dual  
            eligibles opting out of CalMediConnect, and 4 percent  
            disenrolling. The enrollment rate is significantly higher than  
            any other CCI county.


            HPSM also operates a D-SNP for developmentally disabled  
            individuals receiving care from a regional center are  
            enrolled. The D-SNP has approximately 900 members who are  
            ineligible for its CalMediConnect Plan, of whom 600 are  
            developmentally disabled. A D-SNP is a type of Medicare  
            Advantage plan that limits membership to people with specific  
            diseases or characteristics, and tailors 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 CalMediConnect plans, D-SNPs combine  
            Medicare and Medicaid benefits into one plan.


            Under the CCI, D-SNPs operated by plans that also operate a  
            CalMediConnect plan will be phased out. In January 2015,  
            beneficiaries enrolled in a D-SNP operated by a CalMediConnect  
            plan were transitioned into CalMediConnect. HPSM indicates it  
            originally intended to close its D-SNP after 2015 and operate  
            just the CCI program going forward, but because of the  
            uncertainty surrounding CCI long-term (as mentioned in the  
            Governor's January Budget), it will review its decision to  
            continue to operate a D-SNP annually.

          4)Related legislation. SB 492 (Liu) would enact the "Coordinated  
            Care Initiative  
            Consumer and Patient Educational and Informational Guide,"  
            which requires DHCS to develop and post on its Internet Web  
            site an educational and informational guide for consumers and  
            patients about the CCI. SB 492 is pending hearing in Assembly  
            Health Committee.
          








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          5)Prior legislation.
             a)   SB 857 (Committee on Budget and Fiscal Review, Chapter  
               31, Statutes of 2014), institutes various requirements  
               regarding contracts and enrollment limitations on D-SNP  
               plans in the context of the CCI.
             b)   SB 1008 (Committee on Budget and Fiscal Review, Chapter  
               33, Statutes of 2012), establishes the main components of  
               the CCI, including the provisions for the CalMediConnect  
               Program, mandatory Medi-Cal managed care for SPDs, and  
               MLTSS.

             c)   SB 1036 (Committee on Budget and Fiscal Review, Chapter  
               45, Statutes of 2012), authorizes other components of the  
               CCI, includes provisions that require the development and  
               pilot implementation of a universal assessment tool as well  
               as data-sharing agreements between managed care plans and  
               HCBS administrators.

             d)   SB 208 (Steinberg, Chapter 714, Statutes of 2010),  
               authorizes a pilot project in up to four counties, to  
               integrate the full range of Medicare and Medi-Cal services,  
               including LTSS and behavioral health services for dual  
               eligible individuals.
          
          6)Support. The HPSM writes as a co-sponsor that it serves 600  
            developmentally disabled individuals in its D-SNP, but that  
            the D-SNP is costly and inefficient to operate for only a  
            small number of members, and it intends to close the D-SNP in  
            the next year or two. HPSM states this would leave the 600  
            developmentally disabled members without a consolidated health  
            plan for their Medi-Cal and Medicare benefits. HPSM states  
            that this bill will correct this problem by allowing this  
            special needs population to voluntarily enroll in  
            CalMediConnect. 
          
            Golden Gate Regional Center (GGRC), the regional center  
            serving San Mateo County, argues 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  
            fee-for-service Medicare and Medi-Cal through HPSM.








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          7)Concerns. The California Advocates for Nursing Home Reform  
            (CANHR) states that, while HPSM is seen as a model managed  
            care plan with regard to the CCI, plans in other counties are  
            struggling to provide coordinated care and have a large number  
            of problems that seriously harm enrollees. As such, CANHR  
            states that the CCI is currently in jeopardy of being  
            terminated because of failure to meet projected savings, and  
            if the transition of regional center clients in San Mateo is  
            successful, other counties and plans may push to expand  
            voluntary enrollment of this population in other counties as a  
            way to meet savings goals and keep the CCI afloat. Further,  
            CANHR states that if the CCI fails, this new vulnerable  
            population will have their continuity of care interrupted  
            along with thousands of other beneficiaries enrolled,  
            surrogate decision-makers will face challenges.  CANHR  
            concludes that regional center clients have surrogate  
            decision-makers, many of whom will run into roadblocks when  
            they want to assist beneficiaries to disenroll from a plan or  
            change doctors within the plan.
          
          8)Requested amendment. The Regional Center of Orange County  
            (RCOC) writes requesting an amendment to allow residents with  
            developmental disabilities in Orange County to voluntary  
            participate in the CCI. RCOC writes that the OneCare Program  
            (a D-SNP) in Orange County is scheduled to be retired, and not  
            all of the consumers enrolled in it will quality for the new  
            OneCare CalMediConnect program that will replace it. RCOC  
            argues that including Orange County residents in this bill  
            will give these consumers the option to voluntarily join  
            OneCare CalMediConnect when the current OneCare program ends.
          
           SUPPORT AND OPPOSITION  :
          Support:  Health Plan of San Mateo (co-sponsor)
                    Local Health Plans of California (co-sponsor)
                    Association of Regional Center Agencies
                    California Association of Public Authorities for IHSS
                    Congress of California Seniors
                    Golden Gate Regional Center
                    Regional Center of Orange County
                    San Mateo County Board of Supervisors

          Oppose:   None received
          
          








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