BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 2589             
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          |AUTHOR:        |Gomez                                          |
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          |VERSION:       |June 13, 2016                                  |
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          |HEARING DATE:  |June 22, 2016  |               |               |
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          |CONSULTANT:    |Scott Bain                                     |
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           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%  







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            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  :  
          
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          |Assembly Floor:                     |80 - 0                      |
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          |Assembly Appropriations Committee:  |20 - 0                      |
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          |Assembly Health Committee:          |16 - 0                      |
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          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  








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            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.
            








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          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. 








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          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  








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                 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








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                    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 --