BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1235


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          ASSEMBLY THIRD READING


          AB  
          1235 (Gipson)


          As Amended  April 23, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Health          |19-0  |Bonta, Maienschein, |                      |
          |                |      |Bonilla, Burke,     |                      |
          |                |      |Chávez, Chiu,       |                      |
          |                |      |Gomez, Gonzalez,    |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Roger Hernández,    |                      |
          |                |      |Lackey, Nazarian,   |                      |
          |                |      |Patterson,          |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Ridley-Thomas,      |                      |
          |                |      |Rodriguez,          |                      |
          |                |      |Santiago,           |                      |
          |                |      |Steinorth,          |                      |
          |                |      |Thurmond, Waldron,  |                      |
          |                |      |Wood                |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                      |
          |                |      |Bonta, Calderon,    |                      |








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          |                |      |Chang, Daly,        |                      |
          |                |      |Eggman, Gallagher,  |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Jones, Quirk,       |                      |
          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
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          SUMMARY:  Establishes the home upkeep allowance (HUA) for certain  
          Medi-Cal eligible long-term care facility residents, and sets  
          requirements for the allowance, as specified.  Specifically, this  
          bill:  


          1)Requires a HUA to be available to certain long-term care  
            facility residents to use for the maintenance or establishment  
            of a residence following their departure from a facility.


          2)Requires a physician to determine the likelihood of a resident's  
            ability to return to the community.


          3)Establishes eligibility requirements for individuals to receive  
            the HUA, and specifies maximum values and eligible uses of the  
            HUA.


          4)Requires the Department of Health Care Services (DHCS) to  
            perform specified outreach with respect to the HUA.


          FISCAL EFFECT:  According to the Assembly Appropriations  








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          Committee, any additional money the state allows individuals to  
          keep as a HUA results in a commensurate increase in Medi-Cal  
          costs.  The HUA would be available only to a portion of the over  
          200,000 skilled nursing facility discharges every year that,  
          according to analysis of data published by the Office of State  
          Health Planning and Development, have Medi-Cal as a primary payer.  
           Federal law restricts the HUA to situations there is not a spouse  
          or family member living in the individual's home.


          1)For every 1,000 Medi-Cal enrollees in long-term care (LTC)  
            facilities that make use of the expanded HUA, and assuming the  
            additional HUA amount is $3,000 on average, the increased state  
            cost will be $1.5 million (50% General Fund (GF), 50% federal  
            funds).  The actual cost could be more, or less, depending on  
            utilization.  Data is not readily available on what percentage  
            of Medi-Cal enrollees would be both eligible to use and would  
            use the HUA, but it would likely be a small portion of total  
            discharges.


          2)Unknown, significant increased costs associated with increased  
            information and outreach related to the availability of the HUA,  
            potentially in the hundreds of thousands or, if considered in  
            tandem with the higher HUA amounts, millions of dollars  
            (GF/federal funds).  According to organizations familiar with  
            advocacy for long-term care residents, utilization and knowledge  
            of the current program is quite low. 


          3)Unknown, significant offsetting cost savings, to the extent this  
            higher HUA allows individuals, who otherwise would have  
            difficulty maintaining or establishing a home in the community  
            in the absence of this higher HUA, to be discharged from  
            institutional care.  Because the HUA is restricted to  
            individuals with no spouse or family, allowing these individuals  
            to maintain a home would likely allow them to be discharged more  
            readily. 









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          COMMENTS:  According to the Assembly Health Committee, this bill  
          establishes standards for a home upkeep allowance to be available  
          for certain long-term care facility residents.  The Committee may  
          suggest a number of amendments to clarify the bill language in a  
          future committee, as follows:


          1)This bill establishes the HUA in statute and requirements for  
            the allowance.  However, state regulations already define  
            requirements for home maintenance income for long-term  
            residents.  The current language of the bill appears to create  
            an allowance that would be supplemental to the existing home  
            maintenance income; however the author has indicated the intent  
            of this bill appears to be to supplant existing requirements  
            with new regulations for this income.  The Committee may suggest  
            amending the language to clarify the intent and providing  
            defined guidance to DHCS for the interaction of these two  
            allowances.


          2)This bill specifies the HUA will apply to certain long-term care  
            facility residents.  The Committee may suggest specifying which  
            types of long-term care facility residents the HUA will apply  
            to, and the associated criteria for eligibility.


          3)This bill requires DHCS to perform outreach regarding the HUA.   
            The language of the bill is currently confusing with regard to  
            the requirements on the adoption of regulations for this  
            outreach and related standards.  The Committee may suggest  
            amending this bill to clarify these standards in statute.


          This bill requires DHCS to adopt or revise regulations as  
          necessary to reflect the requirements of this section; however the  
          bill provision appears to be incorrectly placed within the  
          language.  The Committee may suggest amending this bill to ensure  
          this requirement applies to the entirety of the bill language.








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          The author states the reason why many individuals stay in nursing  
          facilities indefinitely is in part because the current HUA is  
          insufficient to sustain the cost of basic living needs.  The  
          author explains that the HUA is underutilized due to the high cost  
          of living in California, as compared to other states, and the lack  
          of affordable housing programs.  The author concludes that with  
          the increase in the HUA, this bill will improve the quality of  
          life for Medi-Cal recipients in nursing homes and provide greater  
          opportunities for individuals to transfer back into the community.


          Disability Rights California, the sponsor of the bill, states the  
          current allowance given to long-term care facility residents for  
          the maintenance of their homes is insufficient and highlights the  
          rate has not been updated since the 1970's.  The sponsor states  
          the allowance is too restrictive and does not meet the needs of  
          long-term care residents.  Supporters of the bill state the  
          provisions will allow people to better preserve their residences  
          and will result in cost savings to the state.  


          There is no opposition to this bill.




          Analysis Prepared by:                                               
          An-Chi Tsou / HEALTH / (916) 319-2097  FN: 0000768

















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