BILL ANALYSIS Ó AB 1235 Page 1 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, | | AB 1235 Page 2 | | |Chang, Daly, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- 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 AB 1235 Page 3 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. AB 1235 Page 4 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. AB 1235 Page 5 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 AB 1235 Page 6