BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1518


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          Date of Hearing:   April 30, 2015


                   ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE


                                 Cheryl Brown, Chair


          AB 1518  
          Committee on Aging and Long-Term Care - As Amended April 27,  
          2015


          SUBJECT:  Medi-Cal:  nursing facilities.


          SUMMARY:  Expands opportunities to participate in the Nursing  
          Facility/Acute Hospital (NF/AH) waiver program, and stabilizes  
          service for younger, disabled Californians participating in the  
          Early and Periodic Screening, Diagnosis and Treatment (EPSDT)  
          program.  Specifically, this bill:  


          1)Increases the number of waiver participants in the NF/AH  
            waiver program by 5,000.


          2)Adjusts the cost-cap associated with the NF/AH waiver to  
            coincide with skilled nursing facility care costs, and  
            increases those waiver limitations when skilled nursing  
            facility reimbursements are increased.


          3)Provides for a smooth transition for participants of the EPSDT  
            at age 21 into equitable medically necessary, in-home nursing  
            provided through adult Medi-Cal, or a regional center.










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          4)Conditions implementation upon obtaining the necessary  
            approvals and receipt of federal financial participation from  
            the Federal Centers for Medicare and Medicaid Services (CMS).


          5)Directs implementation to commence within six months of the  
            department receiving authorization for the necessary  
            resources.


          EXISTING LAW:  


          1)Medicaid 1915(c) waivers allow states to provide long term  
            care services in home and community based settings under the  
            Medicaid Program.


          2)California's NF/AH waiver provides case  
            management/coordination, habilitation, home respite, waiver  
            personal care services, community transition, continuous  
            nursing and supportive services, environmental accessibility  
            adaptations, facility respite, family/caregiver training,  
            medical equipment operating expense, PERS-installation and  
            testing, PERS, private duty nursing including home health and  
            shared services, and, transitional case management for  
            medically fragile and technology dependent individuals.


          3)For Medi-Cal eligible children under age 21, Early and  
            Periodic Screening, Diagnosis and Treatment (EPSDT) funds this  
            nursing.  Home nursing hours are calculated based on the  
            appropriate institutional level of care equivalent.


          FISCAL EFFECT:  This measure has not been analyzed by a fiscal  
          committee.










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          COMMENTS:  


          Author's Statement:  California's NF/AH Waiver program does not  
          currently meet the needs of seniors and youth with disabilities  
          who wish to receive services at home, and avoid nursing homes  
          and other institutions.  The author states that home-based  
          services are typically less expensive, more desirable to the  
          clients and their families, and consistent with state and  
          federal priorities; however, current state policies and limited  
          funding and flexibility prevent individuals from being moved  
          from institutions to home-based care.  In addition, the author  
          asserts that upon turning 21, many individuals, who received  
          home care prior to their 21st birthday, are forced into  
          institutions because they become ineligible due to age  
          restrictions for specified services.  


          Background on NF/AH Waiver: "Medicaid waivers" allow states to  
          deliver and pay for health care services while the federal  
          government "waives" some of the usual Medicaid rules.  For  
          instance, Medicaid 1915(c) waivers allow states to provide  
          long-term care services in home and community based settings,  
          instead of licensed health care facilities.  California's NF/AH  
          waiver supports case management, habilitation, home respite,  
          personal care services, community transition assistance,  
          continuous nursing, and other supportive services, environmental  
          accessibility adaptations, caregiver training for family  
          members, private duty nursing such as home health care, and  
          special case management for medically fragile and  
          technology-dependent individuals.  





          Even as Medi-Cal long-term services and supports transition into  
          managed care through the Coordinated Care Initiative, the NF/AH  
          "waiver" provides comprehensive home and community-based  








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          alternative to nursing facility care for people who require  
          services beyond those offered by such long-term care mainstays  
          as In-Home Supportive Services (IHSS).  While the NF/AH waiver  
          has great potential to assist the state with meeting the  
          directive of the Olmstead decision (which guarantees access to  
          the least restrictive, most "integrated," or home-like settings  
          for care, if not cost-prohibitive), California significantly  
          limits the NF/AH waiver utilization, thus creating barriers to  
          less-costly community living for eligible individuals.  The  
          current NF/AH waiver has an enrollment cap of 3,792 persons in  
          2015 and 3,964 in 2016, yet there are approximately 70,000  
          people on Medi-Cal in nursing homes on any given day, 25% of  
          whom express an interest in leaving the facility and living in  
          the community.  Since waivers are applied for, and initiated by  
          states, with CMS granting approval, AB 1518 directs the  
          California Department of Health Care Services (DHCS) to seek  
          permission to serve more than the 3,792 clients this year, and  
          3,964 next year.  





          Cost-Cap Inadequate:  Besides the limitation upon the number of  
          participants, federal requirements for home and community-based  
          waivers include cost-neutrality provisions.  Federal  
          cost-neutrality means that providing home and community-based  
          waiver services to an individual, or a group of individuals,  
          cannot cost the Medi-Cal program more than serving that  
          individual, or that group of individuals, in an institutional  
          setting.  Currently, California applies a more rigorous standard  
          that limits waiver participation and favors institution  
          placements.  Despite a federal option to utilize an "aggregate"  
          cost-cap, California has opted instead to utilize an  
          "individual" cost-cap, which does not permit the State to offset  
          the waiver costs of higher need individuals with the lower costs  
          individuals with less intensive needs.  Interestingly, the  
          waiver which supports developmentally disabled Californians home  
          and community-based services utilizes an aggregate cost-cap with  








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          great success.  





          Background on EPSDT:  The Early and Periodic Screening,  
          Diagnostic and Treatment (EPSDT) benefit provides comprehensive  
          and preventive health care services for children under age 21  
          who are enrolled in Medi-Cal.  EPSDT is key to ensuring that  
          children and adolescents receive appropriate preventive, dental,  
          mental health, developmental, and specialty services.  Children  
          with the most significant medical needs can live at home with  
          the support of home nursing.  For Medi-Cal eligible children  
          under age 21, EPSDT funds those services.  Home nursing hours  
          are calculated based on the appropriate institutional level of  
          care equivalent.  





          At age 21, Medi-Cal recipients should transition from EPSDT to  
          home nursing funded by the NF/AH Waiver, the Developmental  
          Disabilities (DD) Waiver, or regional center services.  Unless  
          needs have changed, this transition should be seamless and  
          services should not decrease.  However, some individuals have  
          experienced a reduction in service because of the different way  
          the NF/AH program operates, including lower caps on hours and  
          more restrictive eligibility criteria.  





          Recent Amendments:  AB 1518 requires DHCS, in determining the  
          need for additional waiver spots, to consider the needs  
          identified by programs that assist people to leave nursing  
          homes.  Recent amendments recommended by the Assembly Committee  








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          on Health specifies which local and/or state programs must be  
          considered by DHCS when considering the number of Waiver slots;  
          clarifies which entity has the authority to decide if an  
          individual is at imminent risk, and what factors must be  
          considered by that entity in making that determination, and;  
          specifies the time range by which the provisions must be  
          implemented upon approval of the waiver by Centers for Medicare  
          and Medicaid Services.  


          


          Dual Referral: AB 1518 was previously heard in the Assembly  
          Health Committee where it passed 19-0 on April 21, 2015.





          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Federation of State, County and Municipal Employees  
          (AFSCME), AFL-CIO


          California Advocates for Nursing Home Reform (CANHR)


          California Association of Public Authorities (CAPA)


          California Commission on Aging








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          Congress of California Seniors


          Disability Rights California


          United Domestic Workers of America (UDW)/AFSCME Local 3930


          Three individuals.




          Opposition


          None on file.




          Analysis Prepared by:Robert MacLaughlin / AGING & L.T.C. / (916)  
          319-3990