BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1231 (Wood) - Medi-Cal: nonmedical transportation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 19, 2015 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 27, 2015 Bill Summary: AB 1231 would require the Department of Health Care Services to provide nonmedical transportation as a covered benefit in the Medi-Cal program. Fiscal Impact: One-time costs, likely about $150,000 to $300,000 for one to two years to develop program requirements, amend the state's Medicaid plan, and adopt regulations to implement the bill (General Fund and federal funds). Ongoing costs of $1.5 million to $6.5 million to provide nonmedical transportation to Medi-Cal beneficiaries enrolled in Medi-Cal managed care plans that do not already provide nonmedical transportation as a covered benefit (General Fund and federal funds). According to the Department of Health Care AB 1231 (Wood) Page 1 of ? Services, 17 out of 21 Medi-Cal managed care plans already provide coverage for nonmedical transportation, covering between 50% and 70% of all existing Medi-Cal managed care plan enrollees. The Department estimates the annual cost per member to provide nonmedical transportation is between $0.50 and $2.00 per year. Ongoing costs of $1.5 million to $3.0 million per year to provide coverage for nonmedical transportation to Medi-Cal beneficiaries not enrolled in Medi-Cal managed care. The Department currently does not provide coverage for nonmedical transportation in the fee for service system (except for children). Unknown impact on overall utilization of specialty health care services in the Medi-Cal program (General Fund and federal funds). By ensuring that Medi-Cal beneficiaries have access to nonmedical transportation to specialty care, the bill is likely to allow for increased access to specialty care by Medi-Cal beneficiaries, particularly those in rural areas of the state. This is likely to increase utilization of those services. On the other hand, timely access to specialty services may allow beneficiaries and their providers to better manage serious medical conditions, potentially reducing future needs for additional specialty services or hospitalization. The net impact of these factors is unknown. Author Amendments: Require a beneficiary to demonstrate that other available resources have been exhausted and make technical and clarifying corrections. -- END --