BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2394 (Eduardo Garcia) - Medi-Cal: nonmedical transportation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 14, 2016 |Policy Vote: HEALTH 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** 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 ? 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. -- END --