BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 635


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          ASSEMBLY THIRD READING


          AB  
          635 (Atkins)


          As Introduced  February 24, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Health          |16-0  |Bonta, Maienschein, |                      |
          |                |      |Bonilla, Burke,     |                      |
          |                |      |Chávez, Chiu,       |                      |
          |                |      |Gomez, Gonzalez,    |                      |
          |                |      |Lackey, Nazarian,   |                      |
          |                |      |Ridley-Thomas,      |                      |
          |                |      |Rodriguez,          |                      |
          |                |      |Santiago, Thurmond, |                      |
          |                |      |Waldron, Wood       |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |13-1  |Gomez, Bonta,       |Bigelow               |
          |                |      |Calderon, Chang,    |                      |
          |                |      |Daly, Eggman,       |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Quirk, Rendon,      |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
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                                                                       AB 635


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          SUMMARY:  Establishes the Medi-Cal Medical Interpretation services  
          program at the Department of Health Care Services (DHCS) to  
          provide and reimburse for certified medical interpretation (CMI)  
          services to limited English proficient (LEP) Medi-Cal enrollees.   
          Specifically, this bill:


          1)Requires DHCS to seek federal funding to establish a program to  
            provide CMI services to Medi-Cal beneficiaries who are limited  
            in their English proficiency.
          2)Requires the program to be available in both Medi-Cal  
            fee-for-service (FFS) and Medi-Cal managed care.


          3)Authorizes Medi-Cal providers and any providers contracting with  
            Medi-Cal managed care organizations to use the programs.


          EXISTING FEDERAL LAW:


          1)Prohibits, a person in the United States, on the grounds of  
            race, color, or national origin, from being excluded from  
            participation in, denied the benefits of, or subjected to  
            discrimination under any program or activity receiving federal  
            financial assistance.


          2)Requires federal agencies to ensure meaningful access to  
            services for LEP persons through regulations.


          EXISTING STATE LAW:


          1)Prohibits discrimination based on ancestry, age, color,  
            disability, genetic information, gender, gender identity, and  








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            gender expression, marital status, medical condition, national  
            origin (includes language use restrictions), race, religion,  
            sex, sexual orientation in any program or activity operated or  
            administered by a state agency.
          2)Requires state and local agencies to provide services to a  
            substantial number of non-English speaking people to provide  
            interpretation services.


          3)Requires hospitals to provide language services, interpreters,  
            or bilingual staff under specified circumstances and to identify  
            and record patients' primary languages in hospital records.


          4)Requires commercial health plans to assess their members  
            language preference and provide interpretation and translation  
            services in threshold languages.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)One-time administrative costs in the range of $1 million  
            (General Fund (GF)/federal) to DHCS to seek federal approvals,  
            create system protocols, develop an information technology  
            infrastructure, design communications and guidance, promulgate  
            regulations, and other initial program development activities. 


          2)Assuming 2 million LEP individuals receive one additional office  
            visit annually with interpretive services provided through this  
            program at a cost of $20 per visit, additional costs would be  
            about $40 million annually. 


          3)Medi-Cal costs would be at a 50% GF, 50% federal funds matching  
            rate, except for costs for individuals at higher matching rates.  









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          4)Improved access to high-quality interpretive services is likely  
            to improve access to care and increase overall medical costs to  
            the Medi-Cal program for LEP beneficiaries.  It would also  
            likely result in some offsetting cost savings associated with  
            the provision of higher-quality care and fewer medical errors.   
            The magnitude of savings as compared to costs is unknown, but  
            evidence suggests that, on balance, the Medi-Cal program would  
            experience increased medical costs if centralized, high-quality  
            interpretive services were available. 


          COMMENTS:  According to the author, California has an opportunity  
          to draw down enhanced federal funding to develop a more  
          comprehensive language assistance program for LEP beneficiaries.   
          These critical services will help ensure better health outcomes  
          for individuals by reducing language barriers that could lead to  
          lack of or inappropriate preventive and primary care.  More than  
          40% of Californians speak a language other than English at home  
          and almost 7 million Californians are estimated to speak English  
          "less than very well."  As a result, language assistance in  
          medical settings is often provided by untrained staff or, more  
          frequently, in an informal manner by family members or friends.


          The author notes that research finds language barriers can  
          contribute to inadequate patient evaluation and diagnosis; lack of  
          appropriate and/or timely treatment; and/or other medical errors  
          that can jeopardize patient safety and lead to unnecessary  
          procedures and cost.  The author concludes, as a recent University  
          of California, Los Angeles report indicates, despite state  
          regulations, health plan enrollees who are LEP still face  
          communication barriers.


          In 2006 various stakeholders created a task force charged with  
          developing recommendations for a system to provide language  
          services for Medi-Cal enrollees, which evolved into the Medi-Cal  








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          Language Access Services (MCLAS) Taskforce.  According to the 2009  
          MCLAS Report, "Providing Language Services for Limited English  
          Proficient Patients in California," more than 25 languages are  
          recorded as Medi-Cal beneficiaries' preferred language.  Almost  
          half (45.2%) speak a language other than English.  


          Each federal department has a civil rights office that is charged  
          with ensuring that its programs are free of discrimination.  The  
          responsibilities of the federal Department of Health and Human  
          Services (HHS) Office for Civil Rights (OCR) include enforcing the  
          Civil Rights Act, the Americans with Disabilities Act, and the Age  
          Discrimination Act.  Any organization or individual who receives  
          monies through HHS - health departments, health plans, social  
          service agencies, nonprofits, hospitals, clinics, and physicians -  
          is subject to OCR oversight.  The Centers for Medicare and  
          Medicaid Services issued a State Medicaid Director letter on  
          August 31, 2000, that informed states of the policy guidance the  
          OCR had issued on the prohibition against national origin  
          discrimination as it affects persons with LEP, pursuant to Title  
          VI the Civil Rights Act.  The OCR Policy Guidance requires  
          recipients of federal assistance to take reasonable steps to  
          ensure meaningful access to their programs and activities by LEP  
          persons.


          Supporters, including the Western Center on Law and Poverty,  
          Health Access California and the American Federation of State,  
          County and Municipal Employees support this bill citing the  
          critical need for providing and reimbursing trained medical  
          interpreters.  They state that California's population is  
          incredibly diverse and that almost 44% of Californians speak  
          another language at home, and the Medi-Cal population is even more  
          diverse.  They argue that when these Californians go to their  
          doctor it is imperative that they can effectively communicate with  
          their doctor.  They conclude it is critical to have a system,  
          particularly for FFS Medi-Cal of medical interpreters.  The  
          California Pan-Ethnic Health Network supports this bill because it  
          will assist the state in meeting their legal obligations under  








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          Title VI of the Civil Rights Act of 1964.  The support sees this  
          bill as improving the quality of health care services for  
          California's diverse populations.  They also argue the bill will  
          help lower health care costs by ensuring the state is able to  
          access federal funds to help pay for the language assistance  
          services it is already required to provide, a view shared by other  
          supporters such as the Homecare Providers Union.




          Analysis Prepared by:                                               
                          Roger Dunstan / HEALTH / (916) 319-2097  FN:  
          0000645