BILL ANALYSIS Ó SB 4 Page 1 (Without Reference to File) SENATE THIRD READING SB 4 (Lara) As Amended September 10, 2015 Majority vote SENATE VOTE: Vote not relevant ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Health | | | | | | | | | |(vote not | | | | |relevant) | | | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations | | | | | | | | | |(vote not | | | | |relevant) | | | | | | | | | SB 4 Page 2 |----------------+-----+----------------------+--------------------| |Health | |Bonta, Bonilla, |Maienschein, | | |13-5 |Burke, Chávez, Chiu, |Lackey, Patterson, | | | |Gomez, Gonzalez, |Steinorth, Waldron | | | |Nazarian, | | | | |Ridley-Thomas, | | | | |Rodriguez, Santiago, | | | | |Thurmond, Wood | | | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Requires children enrolled in restricted scope Medi-Cal be enrolled in full-scope Medi-Cal if otherwise eligible when 2015 Budget bill language making undocumented children under the age of 19 eligible for full-scope Medi-Cal benefits is implemented. Specifically, this bill: 1)Requires, when 2015 Budget bill language is implemented to make undocumented children under the age of 19 eligible for full scope Medi-Cal benefits, that children enrolled in restricted scope Medi-Cal at that time to be enrolled in full scope Medi-Cal if otherwise eligible, pursuant to an eligibility and enrollment plan, and specifies children subject to these provisions are not required to file a new application for Medi-Cal. 2)Requires children currently enrolled in restricted scope emergency Medi-Cal be transferred to full scope services immediately, as soon the program is operational (May 1, 2016). 3)Requires the eligibility and enrollment plan to include outreach strategies developed by the Department of Health Care Services (DHCS) in consultation with stakeholders including, but not limited to, counties, health care service plans, SB 4 Page 3 consumer advocates, and the Legislature. 4)Requires an individual made eligible for full-scope Medi-Cal under these provisions to enroll in a Medi-Cal managed care (MCMC) plan if the individual would otherwise have been required to enroll in the plan. 5)Specifies that enrollment in a MCMC health plan does not preclude a beneficiary from being enrolled in any other children's Medi-Cal specialty program that he or she would otherwise be eligible for. 6)Requires DHCS to seek any necessary federal approvals to obtain federal financial participation in implementing these provisions, and requires benefits for services under these provisions to be provided with state-only funds only if federal financial participation is not available for those services. 7)Requires DHCS to implement these provisions by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions until the time any necessary regulations are adopted. 8)Requires DHCS, prior to implementation, to provide monthly updates to the appropriate policy and fiscal committees of the Legislature on the progress of implementation, and, commencing six months after the effective date of these provisions, to provide a status report to the Legislature on a semiannual basis, until regulations have been adopted. 9)Allows DHCS, in implementing these provisions, to contract as necessary on a bid, or nonbid basis. SB 4 Page 4 FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible increased costs associated with a 30-day timeline to transition children to full-scope Medi-Cal. The 2015-16 Budget assumed transition by June 1, 2016. COMMENTS: According to the author, without access to affordable, quality health insurance, people are forced to rely on emergency care, which means they delay treatment until they are sicker and treatment is more expensive. The author also notes that the Legislature and the Governor, through the enactment of the Budget Act of 2015 (SB 97 (Budget and Fiscal Review Committee), Chapter 11, Statutes of 2015) expanded Medi-Cal eligibility for children under the age of 19, regardless of immigration status, to ensure that no child in California who is income-eligible will be denied access to health care coverage. These provisions are slated to go into effect some time on or after May 1, 2016. This bill will make certain that children currently eligible for limited scope Medi-Cal are quickly transitioned to full-scope Medi-Cal. The author concludes, we've made enormous strides to reduce California's uninsured population with the implementation of the Patient Protection and Affordable Care Act (ACA), but only when we include everyone can we have a truly healthy California. Current scope of Medi-Cal coverage for immigrants. In order to be Medi-Cal eligible, an individual must be a state resident and generally must be low-income. Recent legal immigrants and undocumented immigrant adults who meet income and residency requirements are Medi-Cal-eligible, but the scope of that coverage depends on the immigration status of the immigrant. Under existing state and federal law, undocumented immigrants are not eligible for full scope services, and are instead eligible for "limited scope" Medi-Cal benefits. Limited-scope services are long-term care, pregnancy-related benefits, and emergency services. Medi-Cal also provides coverage for SB 4 Page 5 undocumented individuals needing breast and cervical cancer treatment, family planning services through the Family Planning, Access, Care, and Treatment program, and through temporary presumptive eligibility programs. Presidential action on immigration. In November 2014, President Obama announced that the federal Department of Homeland Security (DHS) would not deport certain undocumented parents of United States (U.S.) citizens and parents of lawful permanent residents. President Obama also announced an expansion of the Deferred Action for Childhood Arrivals program for undocumented youth who came to the United States as children. Under a directive from the Secretary of DHS, these parents and youth may be granted a type of temporary permission to stay in the U.S. called "deferred action." Deferred action is a form of administrative relief from deportation whereby DHS authorizes a noncitizen to remain in the U.S. temporarily. These individuals may also apply for an employment authorization document (a work permit) during the deferred action period. A grant of deferred action is temporary and does not grant citizenship or permanent lawful status. However, a person granted deferred action is considered by the federal government to be lawfully present for as long as the grant of deferred action status. These actions are expected to affect up to 4.4 million people, according to DHS. The ACA and the remaining uninsured. A January 2015 report from the UC Berkeley Center for Labor Research and Education and the UCLA Center for Health Policy Research estimated the ACA is expected to reduce California's uninsured rate by at least half by 2019, at which time the ACA will be fully implemented, as they estimate 6.5 million Californians would have remained uninsured by 2019 without the ACA. The report indicates that between 2.7 and 3.4 million Californians will remain uninsured SB 4 Page 6 by 2019. Overall, between 1.4 and 1.5 million undocumented immigrants in California are projected to remain uninsured in 2019, comprising up to half of all Californians remaining uninsured. Health Access California supports this bill as it is proposed to be amended because it would assure that kids do not need to reapply to transition from restricted scope Medi-Cal to full scope and kids who would not be in MCMC if they were citizens or lawful residents will not be required to enroll in Managed care. The National Immigration Law Center (NILC) states, individuals and communities suffer when people are uninsured. NILC notes, the uninsured are more likely to be diagnosed with cancer at an advanced state, to die after a heart attack or accident, and to suffer poor outcomes from a stroke. NILC concludes we are all better off when everyone has access to health insurance. The Western Center on Law and Poverty supports this bill, noting as California leads the way in implementing the ACA, providing comprehensive health coverage for undocumented children is just the humane thing to do. We the People Rising opposes a previous version of this bill, stating that U.S. Veterans and their children, children in foster care, homeless families, and the unemployed should be the focus of legislation in Sacramento - not individuals residing unlawfully in California. Analysis Prepared by: Lara Flynn / HEALTH / (916) 319-2097 FN: 0002340 SB 4 Page 7