BILL ANALYSIS Ó AB 461 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 461 (Mullin) As Amended June 1, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |79-0 | (May 14, |SENATE: |39-0 |(July 9, 2015) | | | |2015) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY: Authorizes a beneficiary receiving services through a regional center who resides in the County of San Mateo to voluntarily enroll in the Cal MediConnect demonstration project under the Coordinated Care Initiative (CCI), as specified. The Senate amendments clarify that a dual eligible beneficiary, or an individual who is eligible for both Medicare and Medi-Cal, who is receiving services through a regional center located in San Mateo County, is eligible to enroll in the Cal MediConnect demonstration project, even if he or she is already enrolled in a federal home- and community-based waiver. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. AB 461 Page 2 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 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. AB 461 Page 3 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 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 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 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 AB 461 Page 4 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 fee-for-service and Medi-Cal through HPSM. Opposition. There is no opposition on file. Analysis Prepared by: Kelly Green / HEALTH / (916) 319-2097 FN: 0001070