BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1518


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          ASSEMBLY THIRD READING


          AB  
          1518 (Committee on Aging and Long-Term Care)


          As Amended  April 27, 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        |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Aging           |6-0   |Brown, Gipson, Gray, |                     |
          |                |      |Levine, Lopez,       |                     |
          |                |      |Mathis               |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |








                                                                      AB 1518


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          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


          SUMMARY:  Requires the Department of Health Care Services (DHCS)  
          to authorize an additional 5,000 slots beyond current standards  
          for home and community-based patients, and updates requirements to  
          the Nursing Facility/Acute Hospital (NF/AH) Waiver, as specified.   
          Provides this bill only be implemented to the extent that DHCS can  
          demonstrate fiscal neutrality within the DHCS budget and  
          implementation is contingent on federal approval.  Specifically,  
          this bill:  
          1)Requires, by January 1, 2016, nursing home facilities to  
            authorize an additional 5,000 slots beyond those currently  
            authorized for home and community-based NF/AH Waiver.  Requires  
            DHCS to consider specified factors to calculate the need for,  
            and seek federal approval of, additional slots to the waiver.
          2)Updates requirements regarding the NF/AH Waiver to expedite the  
            Waiver application process and clarify level of care for  
            patients, as specified.


          3)Requires DHCS to ensure a seamless transition for patients  
            receiving private duty in-home nursing provided through the  
            Early Periodic Screening, Diagnosis and Treatment program to  
            medically necessary in-home nursing once a patient turns 21  
            years of age.


          4)Adds new services to the NF/AH Waiver and adjusts the cost  
            limitation category of the Waiver to use an aggregate cost limit  








                                                                      AB 1518


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            formula, as specified.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)One-time administrative costs in the range of $100,000 (General  
            Fund (GF)/federal) DHCS to apply for a waiver amendment and seek  
            federal approval, and to establish new policies and procedures  
            related to the bill's requirements, such as assessment of  
            imminent risk and determinations of level of care.  


          2)Though a comprehensive budget neutrality analysis and assessment  
            of unmet need for waiver services is not available, it is  
            assumed total costs for Medi-Cal benefits will be cost-neutral,  
            as the bill specifies. Within the overall budget neutrality, it  
            is expected the state will incur unknown annual costs, likely in  
            the hundreds of thousands of dollars (GF/federal), for  
            additional state staff to conduct assessments for waiver  
            eligibility on an expedited basis, as well as significant cost  
            savings to the extent individuals are cared for at home instead  
            of in a facility.


          COMMENTS:  According to the author, 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.








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          Disability Rights California, the sponsor of this bill, states the  
          current NF/AH waiver offers much less money for home-based care  
          than the state pays for care in comparable institutions.  The  
          sponsor points to the individual cost limit structure, outdated  
          cost limits, a lengthy waiver approval process, and a risk of  
          discontinued services for individuals who qualify for Early and  
          Periodic Screening, Diagnostic, and Treatment services, as  
          evidence for the need for this bill.  Supporters assert this bill  
          provides people with disabilities, including young people and  
          seniors, more opportunities to receive long-term services and  
          supports in their own homes and communities rather than forcing  
          them into less desirable, unneeded and more expensive  
          institutional settings.  They also state this bill will reflect in  
          state budget savings, as home-based services are less expensive  
          than comparable institutional services.


          There is no opposition to this bill.




          Analysis Prepared by:                                               
          An-Chi Tsou / HEALTH / (916) 319-2097  FN: 0000766