BILL ANALYSIS Ó AB 2308 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON EDUCATION Patrick O'Donnell, Chair AB 2308 (Roger Hernández) - As Amended April 13, 2016 [This bill was referred to the Higher Education Committee and was heard by that committee as it relates to issues under its jurisdiction.] SUBJECT: Health care coverage: enrollment assistance SUMMARY: Removes the January 1, 2019 sunset date from existing law that requires public schools to provide parents or legal guardians with information regarding health care coverage options and assistance, and establishes the California Health Care Coverage Enrollment Assistance Act of 2016. Specifically, this bill: 1)Removes the January 1, 2019 sunset date from existing law that requires public schools to provide parents or legal guardians with information regarding health care coverage options and assistance. 2)Requires, commencing with the 2017-18 academic year, each campus of the CSU and CCC to identify uninsured students and offer these students contact information for local entities to provide health care enrollment assistance and information AB 2308 Page 2 about health care coverage options. 3)Authorizes CSU and CCC campuses to identify uninsured students through any of the following: a) Adding health insurance screening questions and contact information for local health care enrollment assistance entities to its enrollment forms; b) Developing a screening method to identify uninsured students and offer these students contact information for local health care enrollment entities; and, c) Partnering with local organizations to ensure students who are identified as uninsured by the campus receive health care enrollment assistance. 4)Authorizes CSU and CCC campuses to provide uninsured students information about health care coverage options through either of the following: a) Using a template developed, as required, by the State Department of Education (SDE) that is made available on the SDE website by August 1, 2017, and upon request provided to the CSU and CCC campuses; or, b) Developing an informational item or amending existing enrollment forms or websites to provide uninsured students information about health care coverage options. 5)Authorizes a CSU or CCC campus to include a factsheet with its AB 2308 Page 3 enrollment forms explaining basic information about affordable health care coverage options for students. 6)Prohibits a CSU or CCC campus from discriminating against a student who does not have health care coverage or use any information related to a student's health care coverage in any manner that would bring harm to the student. 7)Provides for reimbursement to local agencies and school districts for implementation costs, should the Commission on State Mandates determine state mandated local costs are incurred by this bill. EXISTING LAW: 1)Establishes the California Health Benefit Exchange, known as Covered California, as an independent state entity to serve as the marketplace for Californians to purchase health care coverage and as a way to meet the personal responsibility requirements of the federal Patient Protection and Affordable Care Act (ACA). 2)Requires school districts to add to enrollment forms, for the 2015-16, 2016-17, and 2017-18 school years, information about health care coverage options and enrollment assistance. FISCAL EFFECT: State-mandated local program COMMENTS: Purpose of this bill. According to the author, the expansion of AB 2308 Page 4 health care coverage options under the ACA generated approximately seven million newly eligible Californians as of January 1, 2014. Of those nearly 67% qualify for Medi-Cal. There is great opportunity to enroll the eligible; however, notable barriers exist for populations to enroll in health care coverage including lack of awareness about the programs, difficult application or re-enrollment processes, and stigmas associated with enrolling into low-income health insurance and other public programs. While the ACA has dramatically reduced the number of uninsured Californians, a significant number of the population has been left behind in the absence of proactive and practical solutions. AB 2706 (Hernandez), Chapter 827, Statutes of 2014, requires the provision of health care coverage information to K-12 children and their families at the time of school enrollment. According to the author, it is a successful part of health care outreach using schools as a trusted messenger for helpful information about children's health and wellbeing. This bill would create a similar model for CCC and CSU campuses. According to the author, by capitalizing on local partnerships between CCC, CSU and local community resources, this bill will help thousands of eligible families and individuals enroll into health coverage. The author notes that research shows that California students who newly enroll in a health coverage program experience a nearly 63% improvement in performance and are therefore better prepared to succeed in a learning environment. K-12 Impact. This bill removes the sunset date for the requirement in existing law that school districts add health care information to K-12 district enrollment forms. That requirement was enacted by AB 2706 (Roger Hernández), Chapter 827, Statutes of 2014. The purpose of that requirement is to help inform families of health insurance options available to them under the federal Patient Protection and Affordable Care AB 2308 Page 5 Act (ADA) and the California Health Benefit Exchange. The Assembly Appropriations Committee analysis estimated a state-reimbursable mandated cost of between $700,000 and $1.1 million. It is still too early to know what the actual costs are. Sunset date repeal. Generally, the Legislature prefers to extend sunset dates rather than repeal them. This ensures that the Legislature periodically reviews state policy to determine whether it should be continued, repealed, or modified. In this case, the requirement to provide families with information was predicated in large part on the fact that the ADA and the California Health Benefit Exchange were new and unknown to many families. As time goes on, families will become more familiar with the system and their options. In fact, nearly all families will already be enrolled in an insurance program before their children are enrolled in school. Accordingly, the need for this mandate may substantially decline or even be eliminated over time. Having a sunset date ensures the Legislature will reassess the need. In addition, a report issued by Covered California last October shows that awareness of the ACA among Californian's grew to 90% in 2015. The report is based on a survey to measure the public's knowledge of Covered California. Most survey respondents reported receiving information from either someone knowledgeable about Covered California (56%), the Covered California website (58%), or both (the percentages add up to more than 100%, because respondents could identify more than one source). For these reasons, staff recommends that, instead of repealing the K-12 sunset, the bill be amended to extend the sunset date to January 1, 2024 (a five year extension). AB 2308 Page 6 REGISTERED SUPPORT / OPPOSITION: Support American Federation of State, County and Municipal Employees, AFL-CIO California Teachers Association Opposition None received Analysis Prepared by:Rick Pratt / ED. / (916) 319-2087 AB 2308 Page 7