BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 2589 --------------------------------------------------------------- |AUTHOR: |Gomez | |---------------+-----------------------------------------------| |VERSION: |June 13, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |June 22, 2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Scott Bain | --------------------------------------------------------------- SUBJECT : Public health: lactation services and equipment SUMMARY : Requires the Department of Public Health (DPH) to coordinate with the Department of Health Care Services (DHCS) and the California Health Benefit Exchange (known as Covered California) to develop processes, procedures, and an electronic interface for eligibility-related information sharing to streamline enrollment into the Women, Infants, and Children (WIC Program) as part of the application process for Medi-Cal and Covered California. Requires the California Healthcare Eligibility, Enrollment, and Retention System (CalHEERS is the on-line application system administered by DHCS and Covered California) and the county Statewide Automated Welfare Systems (SAWS) to identify individuals who are potentially eligible for the WIC Program to electronically link them to a WIC Program application (by January 1, 2017), and (by January 1, 2022) to provide a simple interface for the individual to electronically complete a WIC Program application. Requires DPH to coordinate with DHCS, through a stakeholder engagement process, to develop measures and outcomes for breastfeeding rates. Existing law: 1)Establishes the California Special Supplemental Nutrition Program for Women, Infants and Children (WIC Program) administered by DPH, under which nutrition and other assistance is provided to eligible low-income postpartum and lactating women, infants, and children under five years of age. 2)Establishes the Medi-Cal program, which is administered by the DHCS, under which health care services, including breastfeeding services, are provided to qualified low-income persons. Medi-Cal provides coverage for most adults up to 138% AB 2589 (Gomez) Page 2 of ? of the Federal Poverty Level (FPL), provides coverage for pregnant women up to 211% of the FPL, and provides coverage to children in families with incomes up to 266% of the federal poverty level (FPL (266% of the FPL is at or below $53,626 for a family of three in 2016). 3)Establishes Covered California in state government, and specifies its duties and authority. Requires Covered California to be governed by a board that includes the Secretary of the California Health and Human Services Agency (Agency) and four members with specified expertise who are appointed by the Governor and the Legislature. 4)Requires individuals to have the option to apply for "insurance affordability programs" in person, by mail, online, by telephone, or by other commonly available electronic means. Defines "insurance affordability programs" as Medi-Cal and coverage purchased through Covered California with an federal advanced premium tax credit or cost-sharing reduction. 5)Requires a single, accessible, standardized paper, electronic, and telephone application for insurance affordability programs be developed by DHCS in consultation with the Covered California board. Requires the application to be used by all entities authorized to make an eligibility determination for any of the insurance affordability programs and by their agents. 6)Requires the Office of Systems Integration to implement a statewide automated welfare system (SAWS) for the following public assistance programs: a) CalWORKS; b) CalFresh; c) Medi-Cal program; d) The foster care program; e) The refugee program; and, f) County medical services programs. This bill: 1)Requires DPH to coordinate with DHCS and Covered California to develop processes, procedures, and an electronic interface for eligibility-related information sharing to streamline enrollment into the WIC Program as part of the application process for Medi-Cal and health plans offered through Covered AB 2589 (Gomez) Page 3 of ? California. 2)Requires, on or before January 1, 2019, CalHEERS and the SAWS to identify individuals who are potentially eligible for the WIC Program and, if a potentially eligible individual wishes to apply for the WIC Program, to electronically link them to a WIC Program application. 3)Requires, on or before January 1, 2022, CalHEERS and SAWS to identify individuals who are potentially eligible for the WIC Program and, if a potentially eligible individual wishes to apply for the WIC Program and provides consent to share confidential data with the WIC Program, to provide a simple interface for the individual to electronically complete a WIC Program application without resubmitting data already known to the CalHEERS and SAWS systems. 4)Requires DPH to coordinate with DHCS, through a stakeholder engagement process, to develop measures and outcomes for breastfeeding rates that do both of the following: a) Include, at a minimum, women's intention to breastfeed, breastfeeding initiation rates, and exclusivity and duration; and, b) Identify ethnic disparities and sociodemographic differences. 1)Requires the stakeholder process to include, but not be limited to, representatives from health care providers, primary care clinics, and health plans, state and local staff from the WIC Program and the Maternal, Child and Adolescent Health (MCAH) program, and representatives from organizations representing women, infants, and children, beginning prenatally and continuing through the postpartum period and at least until the infant reaches one year of age. 2)Requires the stakeholder process to take no longer than six months and the recommendations to be posted on DHCS and DPH Internet Web sites by January 1, 2018. FISCAL EFFECT : According to the Assembly Committee on Appropriations: AB 2589 (Gomez) Page 4 of ? 1)Costs to DPH can be absorbed within their existing MCAH program (federal Title V funds). Costs to DHCS for consultation are also expected to be minor and absorbable (General Fund (GF)/federal). 2)Unknown, significant information technology costs potentially in the millions of dollars (potentially GF/federal/special funds) associated with the provision to develop an electronic interface to share eligibility-related information in order to streamline enrollment in the WIC Program. 3)Unknown, significant administrative costs to ensure federal approval and the availability of federal funding for this work. The WIC Program is fully funded by a federal grant, but it is unknown whether existing federal funds could be used to support this type of expense. PRIOR VOTES : ----------------------------------------------------------------- |Assembly Floor: |80 - 0 | |------------------------------------+----------------------------| |Assembly Appropriations Committee: |20 - 0 | |------------------------------------+----------------------------| |Assembly Health Committee: |16 - 0 | | | | ----------------------------------------------------------------- COMMENTS : 1)Author's statement. According to the author, this bill supports California families through the development of key metrics and improved programmatic coordination that will increase enrollment in the WIC Program and improve breastfeeding rates among women in California. Social determinants of health (conditions in the places where people live, learn, work, and play that affect a wide range of health risks and outcomes) are increasingly being used to understand, measure, and address health equity. Linking families to health care and support systems and providing quality preventative services are basic strategies for ensuring that AB 2589 (Gomez) Page 5 of ? parents and their children reach their full potential. Health care reform and the Affordable Care Act provide historic opportunities for linking low-income families with health care and healthy food. Breastfeeding has been shown to reduce the incidence of obesity while also contributing to numerous positive health outcomes for mother and child. Much progress has been made in California for breastfeeding with nearly 94% of mothers starting breastfeeding in the hospital and 66% exclusively breastfeeding at discharge. Breastfeeding rates after the hospital stay are important with rates dropping off in the first three months. State breastfeeding metrics would guide policy and practice planning efforts. 2)WIC. The WIC Program provides nutrition services and food assistance to low -to-moderate income families for pregnant, breastfeeding, and non-breastfeeding women, infants, and children up to their fifth birthday. In addition to the categorical eligibility requirement, participants must be at or below 185% of the FPL (equivalent to an annual income of $29,637 for a family size of two in 2016). WIC Program services include nutrition education, breastfeeding support, assistance with finding health care and other community services, and vouchers for specific nutritious foods that are redeemable at retail food outlets throughout the state. The WIC Program is federally funded by the US Department of Agriculture (USDA) under the federal Child Nutrition Act of 1966. Specific uses of the WIC Program funds are required under federal laws and regulations, and CDPH must account for and report funds and expenditures on a monthly basis. The WIC Program is administered by DPH, which receives federal funding to administer the WIC Program to Californians based on a discretionary grant appropriated by Congress, plus subsequent reallocations of prior year unspent funds. The WIC Program is not an entitlement program. The number of participants served is limited by the amount of discretionary grant appropriated annually by Congress. For 2016-17, WIC has a budget of approximately $1.3 billion, and the program serves approximately 1.2 million residents each month. In California, 84 WIC agencies provide services at over 600 sites throughout the state. In the 2013-14 fiscal year, 58% percent of WIC participants were children one to five, 20% were infants age zero to one and 9% were pregnant women. AB 2589 (Gomez) Page 6 of ? 3)The ACA and enrollment options for state health subsidy programs. The ACA made numerous changes to increase the number of individuals with health coverage. These changes include requiring a single streamlined form for state health subsidy programs, and by allowing individuals to be able to apply in person, by mail, through the internet, or by telephone. DHCS and Covered California jointly administer CalHEERS, which provides an on-line application for state health subsidy programs, including Medi-Cal and coverage through Covered California with advanced premium tax credits (APTCs) and cost-sharing subsidies. In addition, individuals can apply for state health subsidy programs, CalWORKS and CalFRESH through county human services departments in-person, or via fax, phone or on-line. Covered California indicates in September 2016, CalHEERS will implement a referral program that will direct consumers that meet income thresholds for CalFRESH, CalWORKS and non-MAGI Medi-Cal to those separate applications. However, this will only be a referral program, and CalHEERS will still be only able to directly enroll individuals in insurance affordability programs. The WIC Program income eligibility overlaps with Medi-Cal and eligibility for APTC and cost-sharing subsidies through Covered California. If a person is enrolled in CalFresh or Medi-Cal, they are considered to be automatically eligible for the WIC Program. The WIC Program has an on-line assessment for eligibility, but does not currently have an on-line application. Individuals who complete the on-line assessment are referred to local agencies to discuss potential eligibility with a WIC Program staff person, and a nutrition assessment is required. Federal WIC Program regulations require a nutritional risk assessment to be performed to determine if a person is at nutritional risk through a medical and/or nutritional assessment. In addition, federal regulations require a height or length and weight measurement to be performed and/or documented in the applicant's file at the time of certification. The current WIC Program computer system is going to be replaced with a new system that will be compatible with the move away from a check-based system to an electronic benefit transfer card. DPH indicates it can use federal WIC Program funds for an interface as proposed by this bill, but it is subject to the approval by the federal Department of Agriculture. AB 2589 (Gomez) Page 7 of ? 4)Support. This bill is jointly sponsored by the California WIC Association (WIC Association) and the California Primary Care Association (CPCA). The WIC Association states that this bill will require development of measures of breastfeeding data, and a streamlined process for eligibility and application for participants in the WIC Program via the Medi-Cal and Covered California application processes. The WIC Association states there is significant overlap in the Medi-Cal-eligible and WIC-eligible populations, and it makes sense to develop processes and an electronic interface for eligibility-related information sharing to streamline the WIC application as part of the application process for Medi-Cal and Covered California. The WIC Association also notes that breastfeeding has been shown to reduce the incidence of obesity while also contributing to numerous other positive health outcomes for mother and child, and California needs to develop and agree upon measures for breastfeeding in order to evaluate how best to support California women in meeting their infant feeding goals. CPCA states this bill will empower California moms to breastfeed their babies by streamlining the enrollment process for the WIC Program and create new metrics to track breastfeeding rates and health outcomes. CPCA concludes, with this simple and comprehensive bill, the state can support strategies to improve breastfeeding initiation, duration, and exclusivity. 5)Amendments. This bill requires, on or before January 1, 2019, CalHEERS to identify individuals who are potentially eligible for the WIC Program and, if a potentially eligible individual wishes to apply for the WIC Program, to electronically link them to a WIC Program application. However, the WIC Program application is not currently on-line. Amendments are needed to clarify that this link is required if the WIC Program application is available on-line. 6)Policy issue. a) CalHEERS funding and system changes to implement this bill. CalHEERS is a jointly funded between Covered California and DHCS. Because federal funding for Exchanges is no longer available, the Covered California portion of the funding will come from assessments levied on Covered California health plans. The DHCS portion of the funding comes from a combination of Medicaid and AB 2589 (Gomez) Page 8 of ? Childrens Health Insurance Program federal funds and state General Fund. The CalHEERS budget for 2016-17 is $169.1M ($25.3M General Fund). While easing enrollment and better integration of health and public assistance programs makes it easier for individuals to apply for and receive health and social services for which they are eligible, any changes to CalHEERS under existing law would be funded through assessments on health plans, which are then passed on to individuals purchasing coverage in Covered California. SUPPORT AND OPPOSITION : Support: California Health+ Advocates (sponsor) California WIC Association (co-sponsor) California Primary Care Association (co-sponsor) Alameda County Board of Supervisors AltaMed Health Services Corporation American Federation of State, County and Municipal Employees, AFL-CIO Ampla Health Antelope Valley Hospital WIC Program Association of California Healthcare Districts Breastfeeding Coalition of Solano County California Academy of Nutrition and Dietetics California Advanced Lactation Institute California Breastfeeding Coalition California Center for Public Health Advocacy California Nurse-Midwives Association Children Now Clinica Sierra Vista Community Clinic Association of Los Angeles County Community Clinic Consortium Contra Costa & Solano Counties County Health Executives Association of California Eisner Pediatric & Family Medical Center Family Health Centers of San Diego Harmony Health Health Alliance of Northern California Health And Life Organization, Inc. Kheir Center Marin Community Clinics Maternal and Child Health Access Mountain Valleys Health Centers National Health Law Program North Coast Clinics Network AB 2589 (Gomez) Page 9 of ? North County Health Services North East Medical Services Northeast Valley Health Corporation Northeastern Rural Health Clinics WIC Omni Family Health Open Door Community Health Centers Prevention Institute Public Health Foundation Enterprises WIC program Ravenswood Family Health Center Redwood Community Health Coalition Sacramento Community Clinics San Ysidro Health Center Solano County Public Health WIC Program South of Market Health Center Strategic Alliance for Healthy Food and Activity Environments Tiburcio Vasquez Health Center, Inc. Tulare Regional Medical Center United States Lactation Consultant Association Valley Community Healthcare Watts Healthcare WIC Program Westside Family Health Center White Memorial Community Health Center Oppose: None received -- END --