BILL ANALYSIS                                                                                                                                                                                                    Ó



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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          635 (Atkins)


          As Amended  August 18, 2016


          Majority vote


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          Original Committee Reference:  HEALTH


          SUMMARY:  Requires the Department of Health Care Services (DHCS)  
          to work with identified stakeholders to conduct a study to  
          identify current requirements for medical interpretation  
          services as well as education, training, and licensure  
          requirements, analyze other state Medicaid programs, and make  
          recommendations on strategies that may be employed regarding the  
          provision of medical interpretation services for Medi-Cal  
          beneficiaries who are limited English proficient (LEP), in  
          compliance with applicable state and federal requirements.   
          Specifically, this bill:


          1)Requires the study to assess and make recommendations on pilot  
            projects that would further the objectives of this bill,  
            including funding for those activities and the allowable use  
            of federal funding.










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          2)Requires DHCS to work with identified stakeholders to  
            establish a pilot project in up to four separate sites to  
            evaluate a mechanism to provide and improve medical  
            interpretation services for LEP Medi-Cal beneficiaries, as  
            specified.  Requires DHCS to take into account both the need  
            for those services, and the recommendations from the study.  


          3)Authorizes DHCS to use or contract with an external vendor or  
            other subject matter experts to implement this bill.  Requires  
            DHCS to consult with identified stakeholders regarding the  
            draft initial scope of work that will be used to seek and  
            evaluate proposals.


          4)Requires DHCS, commencing in 2017, during the annual state  
            budget process, to provide an update to the Legislature  
            regarding this bill's implementation.


          5)Authorizes DHCS to expend up to $3,000,000 under the Budget  
            Act of 2016, for the support of activities related to a  
            medical interpreters pilot project, study, or both.


          6)Authorizes DHCS to seek any available federal funding for  
            support of this bill.


          7)Makes the expenditure or encumbrance of the funds under this  
            bill contingent on approval by the Department of Finance. 


          8)Sunsets this bill on July 1, 2020 and repeals its provisions  
            on January 1, 2021.


          The Senate amendments require DHCS to conduct a study relating  
          to medical interpretation services.


          FISCAL EFFECT:  According to the Senate Appropriations  








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          Committee:


          1)One-time costs of $1.4 million to develop program guidelines,  
            seek necessary federal approvals, and develop billing systems  
            (50% General Fund (GF), 50% federal funds (FF)).


          2)Ongoing administrative costs of about $600,000 per year for  
            oversight by the DHCS (GF/FF).


          3)Ongoing costs of about $30 million per year to provide  
            translation services in fee-for-service Medi-Cal, based on  
            estimates of the existing Medi-Cal fee-for-service population  
            with limited English proficiency (GF/FF).


          4)Unknown costs in Medi-Cal managed care (GF/FF).  Under current  
            law, health plans are required to provide interpretation  
            services, including managed care plans that contract with the  
            DHCS.  It is unclear whether the bill's requirement to provide  
            "certified medical interpretation services" through the  
            program would increase costs above the costs already being  
            incurred.


          5)The federal financial participation rate for the costs above  
            may vary.  Generally, the federal government pays for 50% of  
            Medi-Cal costs.  However, the federal government pays an  
            increased reimbursement rate the former Healthy Families  
            population of 65%.  Finally, for the Medi-Cal expansion  
            population, the federal government pays 100% of the cost,  
            declining to 90% by 2020.  Federal law allows for a 75% match  
            for certain costs of interpretation that are considered  
            administrative costs.  However, DHCS indicates that the  
            provision of interpretation services under the bill would be  
            considered Medi-Cal benefits and would be subject to the  
            normal federal match.


          COMMENTS:  According to the author, California has an  








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          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.


          This bill implements a provision in SB 826 (Leno), Chapter 23,  
          Statutes of 2016 or the Budget Act of 2016.  Specifically, SB  
          826 provides under Provision 14 of Item 4260-101-0001 of Section  
          2.00 "[o]f the funds appropriated in Schedule (3), $3,000,000 is  
          for the support of activities related to a medical interpreters  
          pilot project, study, or both.  Expenditure or encumbrance of  
          these funds is contingent upon the chaptering of future  
          legislation authorizing the medical interpreters pilot project,  
          study, or both, and upon approval by the Department of Finance."


          Analysis Prepared by:                                             
                          Rosielyn Pulmano / HEALTH / (916) 319-2097  FN:   
          0004724
















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