BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2308 (Roger Hernández) - Health care coverage: information to students ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 28, 2016 |Policy Vote: ED. 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill requires the California State University (CSU) and the California Community Colleges (CCC) to provide students with information about insurance affordability programs, including how to apply for Medi-Cal and Covered California. This bill also extends the sunset date by two years to January 1, 2021, for K-12 school districts to provide parents with this information on school enrollment forms. Fiscal Impact: Unknown costs for additional enrollment in Medi-Cal (General Fund and federal funds). Giving CSU and CCC students and AB 2308 (Roger Hernández) Page 1 of ? continuing to provide K-12 parents information about the availability of Medi-Cal coverage may encourage some consumers to opt to apply for Medi-Cal, as intended. The extent to which this will occur is unknown. This effect may be small, given the significant public awareness of access to coverage through Covered California and Medi-Cal following the implementation of the Affordable Care Act and the imposition of an individual mandate to have health care coverage. However, even a very small overall increase in Medi-Cal enrollment would have a significant fiscal impact since the cost to provide coverage to an adult in Medi-Cal ranges from about $1,200 per year to $6,000 per year (General Fund and federal funds). CSU anticipates one-time costs of $50,000 General Fund in staff time to comply with this bill. The CCCs anticipate minor costs for campuses to comply with this bill. Continuation of likely minor, reimbursable state mandate costs for schools to provide information about health care coverage options and enrollment assistance on school enrollment forms. Without this bill, this requirement would sunset after the 2017-18 school year. See staff comments. (Proposition 98) Background: Existing law 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. Existing law requires, until the 2017-18 school year, a school to add an informational item to its enrollment forms, or amend an existing enrollment form to provide the parent or guardian information about health care coverage options and enrollment assistance. Existing law requires the California Department of Education (CDE) to develop a standardized template including this information. (Education Code Section 49452.9) Existing law authorizes school districts and county offices of education to incorporate into the School Lunch Program AB 2308 (Roger Hernández) Page 2 of ? application packet or notification of eligibility that the student may qualify for free or reduced-cost health coverage under the California Health Benefit Exchange. (Education Code Section 49557.2) According to the author's office, "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 Affordable Care Act 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." By utilizing schools and universities, this bill is intended to provide essential information and educate students and families about eligibility and available health coverage programs. Proposed Law: This bill establishes the California Health Care Coverage Act of 2016. It requires, beginning with the 2017-18 academic year, each CSU and CCC campus to offer students information about insurance affordability programs, including how to apply for Medi-Cal and Covered California. This requirement is scheduled to sunset January 1, 2021. This bill also extends the sunset date by two years to January 1, 2021, for K-12 school districts to provide parents with this information on school enrollment forms. In providing CSU and CCC students information about insurance affordability programs, including how to apply for Medi-Cal and Covered California, this bill authorizes campuses to: (1) develop an informational item or amend an existing enrollment form or website and use information provided in the standard template developed by the CDE; and (2) include a factsheet with its enrollment forms explaining basic information. This bill also prohibits CSU or CCC from discriminating against a student who does not have health coverage, or use any AB 2308 (Roger Hernández) Page 3 of ? information relating to a student's health care coverage or interest in learning about health care coverage, in any manner that would bring harm to the student. Staff Comments: This bill extends the sunset of the mandated requirement on schools to add an informational item to its enrollment forms, or amend an existing enrollment form, in order to provide the parent or guardian information about health care coverage options and enrollment assistance. Because the 2015-16 school year was the first year that schools were required to implement this requirement, the one-time activity of updating enrollment forms has likely been completed by most schools. -- END --