BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 461


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          461 (Mullin)


          As Amended  June 1, 2015


          Majority vote


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          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.










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          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.








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            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  








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          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