BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2394 (Eduardo Garcia) - Medi-Cal:  nonmedical transportation
          
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          |Version: June 14, 2016          |Policy Vote: HEALTH 8 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 11, 2016   |Consultant: Brendan McCarthy    |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 11, 2016






          Bill Summary:   
            AB 2394 would require the Department of Health Care Services  
          to provide nonmedical transportation as a covered benefit in the  
          Medi-Cal program.


          Fiscal  
          Impact:  
           One-time costs of $120,000 and ongoing costs of $110,000 per  
            year to develop program requirements, amend the state's  
            Medicaid plan, adopt regulations to implement the bill, and  
            provide ongoing monitoring of benefit coverage (General Fund  
            and federal funds).








          AB 2394 (Eduardo Garcia)                               Page 1 of  
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           Ongoing costs of $3 million to $6 million per year to provide  
            nonmedical transportation to Medi-Cal beneficiaries enrolled  
            in Medi-Cal managed care plans that do not already provide  
            nonmedical transportation as a covered benefit and  
            fee-for-service beneficiaries who do not already qualify for  
            nonmedical transportation (General Fund and federal funds).  
            According to the Department of Health Care Services, 17 out of  
            21 Medi-Cal managed care plans already provide coverage for  
            nonmedical transportation, covering between 50% and 70% of all  
            existing Medi-Cal managed care plan enrollees. The Department  
            currently does not provide coverage for nonmedical  
            transportation in the fee-for-service system, except for  
            children and participants in the Coordinated Care Initiative.  
            The Department estimates the annual cost per member to provide  
            nonmedical transportation is between $0.50 and $2.00 per year.

           Unknown impact on overall utilization of health care services  
            in the Medi-Cal program (General Fund and federal funds). By  
            ensuring that Medi-Cal beneficiaries have access to nonmedical  
            transportation to covered services, the bill is likely to  
            allow for increased access to care by Medi-Cal beneficiaries,  
            particularly specialty care for beneficiaries in rural areas  
            of the state. This is likely to increase utilization of those  
            services. On the other hand, timely access to specialty  
            services may allow beneficiaries and their providers to better  
            manage serious medical conditions, potentially reducing future  
            needs for additional specialty services or hospitalization.  
            The net impact of these factors is unknown.


          Committee  
          Amendments:  Delay implementation of the benefit until July 1,  
          2017.


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