BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 492
          Author:   Liu (D)
          Amended:  6/25/15  
          Vote:     21  

           SENATE HEALTH COMMITTEE:  7-0, 4/29/15
           AYES:  Hernandez, Hall, Mitchell, Monning, Pan, Roth, Wolk
           NO VOTE RECORDED:  Nguyen, Nielsen

          SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           SENATE FLOOR:  29-7, 5/22/15
           AYES:  Allen, Beall, Berryhill, Block, Cannella, De León,  
            Galgiani, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso,  
            Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell,  
            Monning, Nguyen, Pan, Pavley, Roth, Vidak, Wieckowski, Wolk
           NOES:  Anderson, Fuller, Moorlach, Morrell, Nielsen, Runner,  
            Stone
           NO VOTE RECORDED:  Bates, Gaines, Huff

           ASSEMBLY FLOOR:  72-5, 8/17/15 - See last page for vote

           SUBJECT:   Coordinated Care Initiative: consumer educational  
                     and informational guide


          SOURCE:    Author
          
          DIGEST:   This bill enacts the Coordinated Care Initiative  
          Consumer and Patient Educational and Informational Guide, which  
          requires the Department of Health Care Services (DHCS) to  
          develop and post on its Internet Web site an educational and  
          informational guide for consumers and patients about the  
          Coordinated Care Initiative (CCI). Requires the guide to  
          describe consumer and patient rights under the CCI, and inform  








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          consumers and patients of effective ways to exercise their  
          rights and who to contact for assistance in securing those  
          rights.
          Assembly Amendments require DHCS to update the educational and  
          informational guide annually, or as necessary, to keep the  
          information contained in the guide up to date regarding changes  
          to the CCI.

          ANALYSIS:
          
          Existing law:

          1)Establishes, under federal law, the Medicare program, which is  
            a public health insurance program for persons 65 years of age  
            and older and specified persons with disabilities who are  
            under the age of 65.

          2)Establishes the Medi-Cal program, administered by the DHCS,  
            under which qualified low-income individuals receive health  
            care services, including home and community-based services  
            (HCBS). 

          3)Requires DHCS to seek federal approval to establish a  
            demonstration project under a Medicare or a Medicaid  
            demonstration project or waiver. Authorizes DHCS under a  
            Medicare demonstration, to contract with the federal Centers  
            for Medicare and Medicaid Services (CMS) and demonstration  
            sites to operate the Medicare and Medicaid benefits in a  
            demonstration project that is overseen by the state as a  
            delegated Medicare benefit administrator, and to enter into  
            financing arrangements with CMS to share in any Medicare  
            program savings generated by the demonstration project.

          4)Requires DHCS, after federal approval is obtained, to  
            establish the demonstration project that enables dual eligible  
            beneficiaries to receive a continuum of services that  
            maximizes access to, and coordination of, benefits between the  
            Medi-Cal and Medicare programs and access to the continuum of  
            long-term services and supports and behavioral health  
            services, including mental health and substance use disorder  
            treatment services. The purpose of this demonstration project  
            is to integrate services authorized under Medi-Cal and  
            Medicare.







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          5)Requires demonstration sites to be established in up to eight  
            counties, and to include at least one county that provides  
            Medi-Cal services via the two-plan model of Medi-Cal managed  
            care.

          6)Requires DHCS to enroll dual eligible beneficiaries into a  
            demonstration site unless the beneficiary makes an affirmative  
            choice to opt out of enrollment, with specified exceptions.

          7)Requires DHCS to require dual eligibles to be assigned as  
            mandatory enrollees into new or existing Medi-Cal managed care  
            health plans for their Medi-Cal benefits in CCI counties. CCI  
            counties are the Counties of Alameda, Los Angeles, Orange,  
            Riverside, San Bernardino, San Diego, San Mateo, and Santa  
            Clara. Allows individuals to opt out of Medi-Cal managed care  
            for the Medicare portion of their benefits.

          8)Requires all Medi-Cal long-term services and supports (LTSS)  
            to be services that are covered under Medi-Cal managed care  
            health plan contracts and to be available only through managed  
            care health plans to beneficiaries residing in CCI counties,  
            except for specified exemptions.

          This bill:

          1)Requires DHCS, by July 1, 2016, to develop and post on DHCS'  
            Internet Web site, an educational and informational guide for  
            consumers and patients about the CCI. Requires DHCS, in  
            developing the educational and informational guide, to consult  
            with stakeholders. 

          2)Requires the guide to describe consumer and patient rights  
            under the CCI, and inform consumers and patients of effective  
            ways to exercise their rights and who to contact for  
            assistance in securing those rights. Requires the guide to  
            include, but not be limited to, all of the following  
            information:

             a)   How to determine whether a health care provider  
               participates in the CCI.
             b)   How to file a grievance and appeal.
             c)   How to change health plans.







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             d)   How to switch from Cal MediConnect to original Medicare  
               and a Medi-Cal managed care plan.
             e)   How to obtain assistance in alternative languages.
             f)   Toll-free telephone numbers for the Cal MediConnect's  
               Ombudsperson Program, the Medi-Cal Managed Care Office of  
               the Ombudsperson, the HMO Help Center, operated by the  
               Department of Managed Health Care, Medicare, and Health  
               Care Options.

          3)Requires the educational and informational guide to include  
            information for individuals who are dually eligible for  
            Medicare and Medi-Cal (dual eligibles), and seniors and  
            persons with disabilities (SPDs) who are required to receive  
            long-term services and supports through a Medi-Cal managed  
            care plan. Permits DHCS to develop a separate educational and  
            informational guide for dual eligibles and SPDs.

          4)Requires DHCS to distribute the educational and informational  
            guide developed to specified consumer advocacy and  
            ombudsperson organizations, and to make it available upon  
            request to all other interested persons.

          5)Requires DHCS to make the educational and informational guide  
            easy to read and understand and available in all Medi-Cal  
            threshold languages, using an appropriate literacy level and  
            in a culturally competent manner.

          6)Require DHCS to update the educational and informational guide  
            annually, or as necessary, to keep the information contained  
            in the guide up to date regarding changes to the CCI.

          7)States legislative intent in enacting this bill that the  
            Coordinated Care Initiative Consumer and Patient Educational  
            and Informational Guide is intended to empower beneficiaries  
            to effectively participate in decisions affecting their health  
            care, by providing information regarding the protections  
            afforded to them under the initiative.

          Comments
          
          1)Author's statement. According to the author, CCI consumers  
            remain one of the most vulnerable populations in California's  
            health care system. The recent implementation of CCI has  







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            generated great confusion among beneficiaries, both in terms  
            of the enrollment process and of the rights they have under  
            this program. Currently, DHCS publishes a guide with a partial  
            list of rights made applicable to approximately 20 percent of  
            CCI participants in the Cal MediConnect program. This list is  
            incomplete and a similar list of rights needs to be written  
            and distributed for those who receive managed long-term  
            services and supports (MLTSS) under the CCI. This bill  
            requires DHCS to create and distribute a consumer-friendly  
            informational guide that describes beneficiaries' rights in  
            both Cal MediConnect and MLTSS. This guide must also include  
            information on CCI services and supports and additional  
            resources for filing appeals and grievances. In doing so, this  
            bill increases consumer awareness of the CCI, and places an  
            emphasis on serving the individual with truly integrated care.

          2)CCI. The CCI is a program intended to integrate and coordinate  
            the delivery of health benefits, including behavioral health  
            benefits and LTSS to dual eligibles and SPDs living in seven  
            California counties: Los Angeles, Orange, Riverside, San  
            Bernardino, San Diego, San Mateo and Santa Clara (state law  
            allows for CCI implementation in eight counties, but CCI will  
            not be implemented in Alameda County). Goals for the CCI  
            include coordinating Medi-Cal benefits and Medicare benefits,  
            across health care settings and improving continuity of acute  
            care, long-term care, and home- and community-based services,  
            coordinating access to acute and long-term care services for  
            dual eligibles, maximizing the ability of dual eligibles to  
            remain in their homes and communities with appropriate  
            services and supports in lieu of institutional care, and  
            increasing the availability of and access to home- and  
            community-based alternatives. The three major components of  
            the CCI are as follows:

             a)   Cal MediConnect Program: A three-year demonstration  
               project designed to coordinate medical, behavioral health,  
               long-term institutional, and home and community-based  
               services (HCBS) services for dual eligibles by combining  
               Medicare and Medi-Cal benefits into one integrated health  
               plan;
             b)   Mandatory enrollment of dual eligibles and Medi-Cal-only  
               seniors and persons with disabilities into Medi-Cal managed  
               care; and,







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             c)   Managed Long-Term Supports and Services (MLTSS):  
               Integration of nursing facility care, In-Home Supportive  
               Services, Community-Based Adult Services, and Multipurpose  
               Senior Services Program as managed care benefits.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to Assembly Appropriations Committee, cost to DHCS is  
          unlikely to exceed $150,000 (50% GF, 50% federal) for  
          development of the informational guide, translation, and  
          printing and mailing costs.  


          The number of guides required to be produced and mailed, as well  
          as the size of the brochures, is indeterminate.  The bill only  
          requires provision of an unspecified number of guides to  
          specified consumer advocacy groups, not to all beneficiaries


          SUPPORT:   (Verified8/19/15)


          American Federation of State, County, and Municipal Employees
          California Alliance for Retired Americans
          California Association of Public Authorities for IHSS
          California Commission on Aging
          Government Action and Communications Institute
          SEIU California
          United Domestic Workers/American Federal of State, County and  
           Municipal Employees Local 3930


          OPPOSITION:   (Verified 8/19/15)


          California Association of Health Plans
          Department of Finance
          Department of Health Care Services


          ARGUMENTS IN SUPPORT:     The Government Action and   
          Communications Institute (GACI) writes in support that DHCS  







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          provides a partial list of rights to about 20 percent of the CCI  
          participants (the dual eligible in CalMediConnect). GACI states  
          the CCI shifts nearly 800,000 low-income seniors and persons  
          with disabilities from Medi-Cal fee-for-service into managed  
          care. GACI argues DHCS provides a partial list of rights to  
          about 20 percent of the CCI participants (those who are in  
          CalMediConnect plans). GACI argues this partial list of rights  
          needs work, and a similar list of rights needs to be written and  
          distributed for those who receive managed long term services and  
          supports. GACI argues the extensive nature of the changes the  
          CCI brings to the health and social services of hundreds of  
          thousands of Californians gives weight to its belief that the  
          Legislature should require DHCS to inform consumers of their  
          rights.

          ARGUMENTS IN OPPOSITION:  The California Association of Health    
                  Plans (CAHP) writes in opposition that this bill is  
          unnecessary because DHCS currently publishes an existing  
          guidebook that contains almost identical information to the  
          bill. CAHP states the only difference is that the guidebook  
          refers the reader to the plan's online directory, and this bill  
          requires that the directory be provided. CAHP concludes the  
          development of a new guide is duplicative of current efforts  
          managed by the state.

          DHCS argues the information required to be included in the guide  
          is already available to CCI consumers and providers through  
          various informing materials, the costs associated with creating  
          and distributing the guide would be significant, and the goals  
          of the guide are already accomplished through existing  
          materials.

          ASSEMBLY FLOOR:  72-5, 8/17/15
          AYES:  Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta,  
            Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu,  
            Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman,  
            Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger Hernández,  
            Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine,  
            Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty,  
            Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Weber, Wilk,  







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            Williams, Wood, Atkins
          NOES:  Brough, Gallagher, Harper, Patterson, Waldron
          NO VOTE RECORDED:  Travis Allen, Beth Gaines, Melendez


           Prepared by:Scott Bain / HEALTH / 
          8/19/15 21:02:58


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