BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2821


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          Date of Hearing:  April 13, 2016


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                  David Chiu, Chair


          AB 2821  
          (Chiu) - As Amended March 29, 2016


          SUBJECT:  Medi-Cal Housing Program


          SUMMARY:  Creates the Medi-Cal Housing Program to provide  
          support to counties who participate in the Whole Person Care  
          pilot program with funding for rental assistance for homeless  
          Medi-Cal recipients   Specifically, this bill:  


          1)Makes legislative findings. 


          2)Defines "homelessness" to mean the federal definition in  
            Section 578.3 of Title 24 of the Code of Federal Regulations.


          3)Defines "interim housing" to mean a safe place for participate  
            to live temporarily while waiting to move into housing  
            affordable to the participant including recuperative or  
            respite care not funded for longer than period of nine months.  



          4)Defines "long-term rental assistance" to mean a rental subsidy  
            provided to a housing provider to assist a tenant to pay the  
            difference between 30% of the tenant's income and the costs of  








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            operating the assisted unit. 


          5)Defines "supportive housing" to mean housing with no limit on  
            length of stay, occupied by the target population, and that is  
            linked to onsite or offsite services that assist the resident  
            in retaining the housing, improving his or her health status,  
            and maximizing his or her ability to live and, when possible,  
            work in the community.


          6)Defines the "Whole Person Care pilot program" to mean the  
            program included in the 1115 Medical Waiver finalized on  
            December 30, 2015.


          7)Requires the Department of Housing and Community Development  
            (HCD) in coordination with the Department of Health Care  
            Services (DHCS) to do all of the following:


             a)   On or before July 1, 2017, create the Medi-Cal Housing  
               Program;


             b)   On or before July 1, 2017, draft guidelines for  
               stakeholder comment to fund grants to eligible counties to  
               pay for long-term housing costs under the Medi-Cal Housing  
               Program;


             c)   On or before January 1, 2018 and every year thereafter,  
               subject to appropriation by the Legislature, award grants  
               to eligible counties and regions participating in a Whole  
               Person Care pilot program;


             d)   Collect data midyear and annually from counties and  
               regions receiving grants awarded under the Medi-Cal Housing  








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               Program. 


             e)   By March 31, 2019, and every year thereafter, in which  
               the Medi-Cal Housing Program receives funding, report data  
               collected to the Assembly Committee on Budget, the Senate  
               Committee on Budget and Fiscal Review, the Assembly  
               Committee on Housing and Community Development, and the  
               Senate Committee on Transportation and Housing.  


          1)Provides that a county or a region including more than one  
            county will be eligible for a Medi-Cal Housing Program grant  
            if the county or region's lead entity meets all of the  
            following requirements:


             a)   Meets one of the following descriptions: 


                  i.        Is either a lead entity participating in a  
                    Whole Person Care pilot program under Medi-Cal 2020  
                    Waiver; 


                  ii.       Is a lead entity that had previously  
                    participated in a Whole Person Care pilot that has  
                    expired; or


                  iii.      Is a county with Medi-Cal managed care plan  
                    participating in the health home Program 


             a)   Has formed collaborative relationships with at least one  
               health plan, county health and behavioral health agency, at  
               least one housing authority and established relevant   
               continuums of care along with nonprofit housing homeless  
               service providers, to enable the county or region to carry  








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               out the requirements of the Medi-Cal Housing Program


             b)   Has identified a source of funding for care management  
               and other services including one or more of the following:


                  i.        County general funds;


                  ii.       Whole Person Care housing pilot pool and  
                    management care programs; or 


                  iii.      The Health Home Program 


             a)   Has designated a process for administering grant funds  
               through agencies administering housing programs;


             b)   Agrees to collect and report data to HCD and DHCS. 


          1)Requires a county or region awarded grant funds to form  
            agreements with health plans to collect Medi-Cal data  
            regarding members' overall health costs 


          2)Requires a county or region awarded grant funds to at annual  
            and midyear intervals report the following data to HCD and  
            DHCS:


             a)   A comparison of health care costs of residents receiving  
               long-term rental assistance under the Whole Person Care  
               Housing Program to health care costs of homeless resident  
               not receiving long-term rental assistance.









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             b)   The number of participants and the type of interventions  
               offered through grant funds.


             c)   The number of participants receiving long-term rental  
               assistance living in supportive housing other housing that  
               does not limit length of stay.   





          1)Requires a county or region to use grants awarded through the  
            Medi-Cal Housing Program for one or more of the following:


             a)   Long-term rental assistance for period up to five years  
               as determined by the eligible county; 


             b)   Interim housing; or


             c)   A county's administrative costs for up to 5% of the  
               total grant awarded. 


          1)Provides that a county resident is eligible to receive  
            assistance under the Medi-Cal Housing Program if he or she  
            meets all of the following requirements:


             a)   Is homeless upon initial eligibility;


             b)   Is a Medi-Cal beneficiary; and 










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             c)   Is eligible for services in programs identified by  
               participating counties or regions.   


          1)Provide that the Medi-Cal Housing Program is subject to an  
            initial unspecified appropriation after which funding for the  
            program will come from decreased costs of care as reported by  
            participating counties of moving eligible participants to  
            supportive housing.


          2)Allow HCD to use no more than 5% of funds from the Medi-Cal  
            Housing Program for purpose of administering the program.   


          EXISTING LAW:  


          FISCAL EFFECT:  Unknown. 


          COMMENTS:  




           Background  :  Homelessness often creates an institutional  
          circuit, where those experiencing it long enough cycle through  
          living on the streets, emergency department visit, inpatient  
          admissions, incarceration, and often nursing home stays. This  
          circuit is expensive to our public systems.  Homeless  
          individuals cost our public systems an average of $2,897 per  
          month, two-thirds incurred through the health system.  Half of  
          all homeless people have a history of incarceration. If homeless  
          when discharged from prison or jail, parolees and probationers  
          are seven times more likely to recidivate than people who are  
          housed.  Homeless Californians incur disproportionate Medi-Cal  
          costs and achieve poor health outcomes. Many experience a  
          combination of chronic medical, mental health, and substance  








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          abuse conditions, as well as social determinants that negatively  
          impact their ability to access care.


          Homeless frequent users continue to increase their inpatient  
          costs despite high Medi-Cal costs because they cannot obtain  
          sufficient rest, follow a healthy diet, store medications, or  
          regularly attend appointments so long as they are unhoused.  
          Two-thirds of frequent users have both medical and behavioral  
          health conditions, are homeless, and die 30 years younger than  
          average.

          In March 2015, the Department of Health Care Services (DHCS)  
          proposed using Medi-Cal to fund services and housing  
          assistance-supportive housing-acknowledging decades of research  
          demonstrating supportive housing decreases Medicaid costs among  
          homeless beneficiaries. The Federal Centers for Medicare &  
          Medicaid Services (CMS) approved use of federal Medicaid dollars  
          to fund services in supportive housing. Though CMS rejected  
          using federal Medicaid dollars to pay for housing, CMS stated  
          the State could use its own State dollars (through Medi-Cal or  
          otherwise) to fund housing subsidies. In fact, a number of other  
          states and jurisdictions within California, including the State  
          of New York and the County of Los Angeles, pay for housing costs  
          through health systems. 


          The final 1115 Medicaid Waiver in California includes the Whole  
          Person Care pilot program, which allows counties to tap into  
          federal funds to pay for care management supports, services  
          helping people find housing, and services promoting housing  
          stability DHCS is also working to implement a new Health Home  
          Program that would fund services for high-cost homeless  
          beneficiaries.

          This bill would create the Medi-Cal Housing Program to provide  
          funding to counties that participate in the Whole Person Care  
          pilot program with funding for rental assistance.  The program  
          would be funded through an initial appropriation, however, over  








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          time the funding for the program would come from costs savings  
          to Medi-Cal achieved by moving homeless Medi-Cal recipients into  
          supportive housing.  


           


          Purpose of this bill  : Homeless beneficiaries incur  
          disproportionate Medi-Cal costs, particularly people  
          experiencing chronic homelessness and people who cycle between  
          homelessness, emergency departments, inpatient care, and nursing  
          home stays. Supportive housing, which is affordable housing with  
          intensive services, allows people experiencing significant  
          barriers to housing stability to improve their health and  
          decrease their Medicaid costs. National studies comparing  
          formerly homeless Medicaid beneficiaries living in supportive  
          housing with homeless beneficiaries receiving usual care  
          demonstrate Medicaid cost savings of almost $9,000 per year  
          after the costs of services.  This bill would complete the  
          "Whole Person Care" nature of the 1115 pilots and the Health  
          Home Program by creating a program which would fund rental  
          subsidies tied to services dollars included in the 1115 Waiver  
          and the Health Home Program. 





           Double referred  :  If AB 2821 passes this committee, the bill  
          will be referred to the Committee on Health.





          REGISTERED SUPPORT / OPPOSITION:










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          Support


          Corporation for Supportive Housing (co-sponsor)


          Housing California (co-sponsor)


          Casa Major, Inc.


          Community Housing Partnership


          Episcopal Community Services of San Francisco


          Western Center on Law and Poverty







          Opposition


          None on file




          Analysis Prepared by:Lisa Engel / H. & C.D. / (961) 319-2085,   
          Lisa Engel / H. & C.D. / (916) 319-2085









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