BILL ANALYSIS Ó AB 2308 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2308 (Roger Hernández) As Amended June 28, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |(June 2, 2016) |SENATE: | 28-9 |(August 17, | | |56-24 | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: HIGHER ED. SUMMARY: Extends, from January 1, 2019 to January 1, 2021, the sunset date in existing law that requires public schools to provide parents or legal guardians with information regarding health care coverage options and assistance; and, requires the California State University (CSU) and the California Community Colleges (CCC) to provide specified information regarding insurance affordability programs, including how to apply for Medi-Cal and Covered California. The Senate amendments remove the term "health care options" and instead require CSU and CCC to provide information regarding "insurance affordability programs, including how to apply for Medi-Cal and Covered California". EXISTING LAW: AB 2308 Page 2 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: According to the Senate Appropriations Committee: 1)Unknown costs for additional enrollment in Medi-Cal (General Fund and federal funds). Giving CSU and CCC students and 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). 2)CSU anticipates one-time costs of $50,000 General Fund in staff time to comply with this bill. 3)The CCCs anticipate minor costs for campuses to comply with this bill. 4)Continuation of likely minor, reimbursable state mandate costs AB 2308 Page 3 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) COMMENTS: According to the author, the expansion of 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 (Hernández), 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. Analysis Prepared by: Laura Metune / HIGHER ED. / (916) 319-3960 FN: AB 2308 Page 4 0004201