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
          
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          |Version: June 28, 2016          |Policy Vote: ED. 8 - 0          |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Jillian Kissee      |
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          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  







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            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  








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          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  








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          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.  


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