BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 461 --------------------------------------------------------------- |AUTHOR: |Mullin | |---------------+-----------------------------------------------| |VERSION: |June 1, 2015 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |June 10, 2015 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Scott Bain | --------------------------------------------------------------- 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 AB 461 (Mullin) Page 2 of ? 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; AB 461 (Mullin) Page 3 of ? 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 : ----------------------------------------------------------------- |Assembly Floor: |79 - 0 | |------------------------------------+----------------------------| |Assembly Appropriations Committee: |17 - 0 | |------------------------------------+----------------------------| |Assembly Health Committee: |17 - 0 | | | | ----------------------------------------------------------------- COMMENTS : 1)Author's statement. According to the author, AB 461 will AB 461 (Mullin) Page 4 of ? 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 AB 461 (Mullin) Page 5 of ? 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. AB 461 (Mullin) Page 6 of ? 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. AB 461 (Mullin) Page 7 of ? 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 AB 461 (Mullin) Page 8 of ? -- END --