BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          BILL NO:                    SB 547    
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          |AUTHOR:        |Liu                                            |
          |---------------+-----------------------------------------------|
          |VERSION:       |January 4, 2016                                |
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           --------------------------------------------------------------- 
          |HEARING DATE:  |January 13,    |               |               |
          |               |2016           |               |               |
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          |CONSULTANT:    |Teri Boughton                                  |
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           SUBJECT  :  Aging and long-term care services, supports, and  
          program coordination.

         SUMMARY  :1. Creates a Statewide Aging and Long-Term Care Services and  
          Coordinating Council (Council), chaired by the Secretary of the  
          California Health  and Human Services Agency and requires the  
          Council to develop and implement a state aging and long-term  
          care services strategic plan to address how California will meet  
          the needs of the aging population in 2020, 2025, and 2030.  

          Existing law:
          1)Establishes the California Health and Human Services Agency  
            (CHHS), an umbrella agency over the departments of Aging,  
            Child Support Services, Community Services and Development,  
            Developmental Services, Health Care Services, Managed Health  
            Care, Public Health, Rehabilitation, Social Services, and  
            State Hospitals.

          2)Establishes the Coordinate Care Initiative which: mandates  
            that most Medi-Cal beneficiaries over age 21 enroll in a  
            Medi-Cal managed care health plan in order to receive Medi-Cal  
            benefits, including long-term supports and services (LTSS);  
            creates a demonstration program for Medicare and Medi-Cal dual  
            eligible beneficiaries to coordinate medical, behavioral  
            health, long-term institutional, and home- and community-based  
            services through a single health plan; and, provides state  
            authority for Cal MediConnect. 
             
          3)Requires the Department of Public Health (DPH) to license and  
            certify long-term care facilities to: administer the  
            Alzheimer's Disease Program; California Arthritis Partnership  
            Program; Preventive Health Care for Adults; Well-Integrated  







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            Screening and Evaluation for Women Across the Nation;  
            California Colon Cancer Control Program; Acquired Immune  
            Deficiency Syndrome Waiver; Home Health Aide Certification;  
            Nursing Home Licensing & Certification; and, Community-Based  
            Adult Services Facility Licensing & Certification.

          4)Requires the Department of Health Care Services (DHCS) to  
            administer Medi-Cal, through which the following programs  
            operate: Community-Based Adult Services; Caregiver Resource  
            Centers; Acquired Immune Deficiency Syndrome waiver; Home and  
            Community-Based Services for the Developmentally Disabled;  
            Assisted Living Waiver; California Community Transitions  
            Project; California Partnership for Long-Term Care; Community  
            Living Support Benefit waiver; Proving Access, Counseling &  
            Treatment for Californians with Prostate Cancer, In-Home  
            Operations waiver; Developmentally-Disabled/Continuous Nursing  
            Care Program; Nursing Home/Acute Hospital waiver; Home  
            Supportive Services Plus State Plan Option Program; Program of  
            All-Inclusive Care for the Elderly; Senior Care Action Network  
            Health Plan; State Plan Services, Medi-Cal Managed Care;  
            Prescription Drug Discount Program for Medicare Recipients;  
            and, Genetically Handicapped Persons Program.

          5)Requires the Department of Developmental Service to administer  
            Home and Community-Based Services for the Developmentally  
            Disabled, Developmental Centers, Office of Protective  
            Services, Foster Grandparent and Senior Companion Programs

          6)Establishes the California Department of Aging (CDA) to  
            administer programs that serve older adults, adults with  
            disabilities, family caregivers, and residents in long-term  
            care facilities throughout the State.

          7)Sets forth legislative findings and declarations regarding  
            long-term care services, including that consumers of those  
            services experience great differences in service levels,  
            eligibility criteria, and service availability that often  
            result in inappropriate and expensive care that is not  
            responsive to individual needs. 

          8)Sets forth legislative findings and declarations stating that  
            the laws governing long-term care facilities have established  
            an uncoordinated array of long-term care services that are  
            funded and administered by a state structure that lacks  
            necessary integration and focus.








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          9)Under federal law, establishes the U.S. Administration for  
            Community Living (ACL), bringing together the Administration  
            on Aging, the Office on Disability and the Administration on  
            Developmental Disabilities to: reduce fragmentation in Federal  
            programs that address the community living service and support  
            needs of aging and disabled populations; enhance access to  
            quality health care and LTSS for all individuals; and, promote  
            consistency in community living policy across other areas of  
            the federal government.
          This bill:
          1)Requires the Secretary of CHHS (Secretary) to be responsible  
            for the inter- and intra-agency coordination of state aging  
            and long-term care services, supports, and programs, ensuring  
            efficient and effective use of state funds, and maximizing the  
            drawdown, and the efficient and effective use of federal  
            funds.

          2)Creates a Statewide Aging and Long-Term Care Services and  
            Coordinating Council (Council), chaired by the Secretary and  
            consisting of the heads, or designees, representing 22 state  
            departments.

          3)Requires the Council to develop and implement a state aging  
            and long-term care services strategic plan to address how  
            California will meet the needs of the aging population in  
            2020, 2025, and 2030.  Requires the strategic plan to  
            incorporate clear benchmarks and timelines for achieving the  
            goals set forth in the strategic plan, and be updated every  
            five years.

          4)Requires consultation with specified experts, advocates and  
            stakeholders in developing the strategic plan, and requires  
            technical support to be provided by the Office of Health  
            Equity in DPH and the CDA.

          5)Requires the strategic plan to address all of the following:

               a.     Integration and coordination of services that  
                 support independent living, aging in place, social and  
                 civic engagement, and preventative care;
               b.     Long-term care financing;
               c.     Managed care expansion and continuum of care;
               d.     Advanced planning for end-of-life care;








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               e.     Elder justice;
               f.     Care guidelines for Alzheimer's disease, dementia,  
                 Amyotrophic Lateral Sclerosis, and other debilitating  
                 diseases;
               g.     Caregiver support;
               h.     Data collection, consolidation, uniformity,  
                 analysis, and access;
               i.     Affordable housing;
               j.     Mobility;
               aa.    Workforce;
               bb.    The alignment of state programs with the federal  
                 ACL; and,
               cc.    The potential for integration and coordination of  
                 aging and long-term care services with services and  
                 supports for people with disabilities.

          6)Requires the Council to examine model programs and consider  
            how to scale up local, regional, and state-level best  
            practices and innovations to overcome long-term care services  
            delivery.

          7)Requires the strategic plan to be submitted to the specified  
            committees of the Legislature by July 1, 2018, with updates  
            submitted by July 1, 2023, and July 1, 2028.  Requires,  
            beginning July 1, 2017,  the Secretary to report on an annual  
            basis to specified committees of the Legislature, the status  
            of the long-term care programs, federal funding received,  
            progress in developing and implementing the strategic plan as  
            provided in this bill and the statewide Internet Website  
            portal (CalQualityCare.org), as specified below in 8) and 9).

          8)Requires the Secretary to enter into a contract with the  
            Regents of the University of California so that  the Council  
            may either partner with the University of California, San  
            Francisco (UCSF) to operate, revise, and manage the  
            CalQualtiyCare.org Internet Website or acquire the rights to  
            operate the Website to function as a consumer-oriented portal,  
            as specified in 9).

          9)Requires the CalQualityCare.org Website to provide all of the  
            following information:

               a.     Comprehensive, free unbiased information on LTSS,  
                 including licensed skilled nursing facilities, and  
                 others, as specified;








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               b.     Depending upon availability and reliability of the  
                 data,

                     i.          Provider characteristics, such as  
                      location, size and ownership;
                     ii.         Ratings of SNFs, home health, hospice and  
                      ICF/DDs;
                     iii.        Staffing, such as number and type;
                     iv.         Quality of the facility, such as  
                      deficiencies and complaints;
                     v.          Quality of care, such as incidence of  
                      pressure ulcers and infections; and,
                     vi.         Cost and finances.

               c.     Information that assists the consumer to learn about  
                 options and how to make decisions on LTSS, advanced   
                 planning, and end of  life options;
               d.     Requires the Secretary, by July 1, 2018, to expand  
                 the CalQualityCare.org Internet Website to include:

                     i.          Information about LTSS eligibility and  
                      how to access LTSS;
                     ii.         Internet links to reputable local  
                      resource portals, such as county LTSS Internet Web  
                      sites; and,
                     iii.        Information on additional licensed  
                      providers, such as nonmedical home care aides.
                      
           FISCAL  
          EFFECT  :   This bill has not been analyzed by a fiscal committee.
           
          COMMENTS  :
          1.Author's statement.  According to the author, "California's  
            population of residents 65 years old and older will grow from  
            about 13% of the population in 2015 to almost 20 % of the  
            population by 2030.  The state is not prepared for this silver  
            tsunami.  The overwhelming conclusion the Senate Select  
            Committee on Aging and Long Term Care drew from its research  
            and public hearings in 2014 is that California's aging and  
            long term care system of services and supports is fragmented  
            to the point of being almost impossible for consumers,  
            caregivers, and providers to navigate.  There are 112 aging  
            and long term care programs spread over 20 state agencies and  
            departments and very little coordination among them. We cannot  
            change overnight, but change we must.  California must begin  








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            now to organize our services and supports delivery system and  
            plan our investments in long term care to maximize returns in  
            the form of improved quality of life and cost savings to  
            consumers and taxpayers before we are faced with an  
            overwhelming crisis.  It is time for California to commit to  
            creating a rational system of supports and services that will  
            meet the needs of aging and disabled adults.  The costs of  
            failure to the state and to society are too great for us not  
            to act."

          2.California's aging population. According to the 2011 study "A  
            Long-Term Strategy for Long-Term Care" by the Little Hoover  
            Commission, the number of Californians over age 65 is  
            projected to double by 2030 to 8.84 million people, or 18 % of  
            California's population. Working age adults with disabilities  
            likely will increase in number to more than half a million by  
            2030, exerting additional pressure on California's long-term  
            care system. The aging population also is living longer, many  
            with physical or cognitive disabilities or chronic illnesses  
            such as Alzheimer's disease, high blood pressure, diabetes and  
            obesity, or with a history of heart attack or stroke.  
            According to a series of articles in the Sacramento Bee from  
            2010 and 2011, California's growing population will place  
            unprecedented level of demand on the state's health care  
            resources.

          3.Select Committee on Aging and Long Term Care Report.  The  
            Select Committee on Aging and Long Term Care's 2014 report, "A  
            Shattered System: Reforming Long Term Care in California"  
            (report) was the result of a comprehensive effort in 2014 to  
            identify the structural, policy, and administrative changes  
            necessary to realize an ideal long-term care delivery system  
            and develop recommendations and a strategy to achieve that  
            vision. One of the critical policy areas identified by the  
            report was the fragmented long-term care system, with the  
            report stating that California's fragmented structure  
            complicates comprehensive long-term care reform, and that in  
            lieu of a cohesive strategic plan, California has instead  
            adopted a piecemeal and reactive approach to change. To  
            address this issue, the report recommended creating the  
            Department of Community Living within CHHS, appointing an  
            individual to lead the Department, and developing and  
            implementing a long-term care strategic plan. The Little  
            Hoover Commission Report from 2011 recommends that the  
            Governor and Legislature should consolidate all long-term care  








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            programs and funding into a single long-term care entity  
            within the CHHS. 

          4.CalQualityCare.org. CalQualityCare.org is a free Website,  
            managed by the California HealthCare Foundation (CHCF) , which  
            features information on California hospitals, medical groups,  
            nursing homes, and other long-term care facilities, along with  
            tips and checklists about how to choose a health care  
            provider, questions to ask, how to pay for care, and what to  
            do if something goes wrong. CHCF has plans to transfer control  
            of CalQualityCare.org to UCSF. According to CHHS, UCSF has  
            approached several CHHS departments to see if they would be  
            able to both finance and manage the website, including website  
            maintenance, data collection, analysis and linkage. CHHS did  
            engage in a discussion with the departments to assess the  
            capacity and resources that would be required to assume  
            management of this website.  After further review and  
            discussion, CHHS determined that the information available on  
            CalQualityCare.org is made available to consumers through  
            various existing efforts.  As examples, CHHS refers to federal  
            CMS sites designed to provide consumer-friendly information on  
            physicians, hospitals, nursing homes, home health and  
            dialysis.  CHHS also indicates that state specific data are  
            made publicly available through CHHS departments and some data  
            are included in the CHHS Open Data Portal.

          5.Existing Committees.  CHHS has two advisory bodies on  
            long-term care, the Olmstead Advisory Committee and the  
            Alzheimer's Disease and Related Disorders Committee. The  
            Olmstead Advisory Committee was established in 2005 in  
            reaction to a 1999 ruling in which the United States Supreme  
            Court held in Olmstead v. L.C. that unjustified segregation of  
            persons with disabilities constitutes discrimination in  
            violation of title II of the Americans with Disabilities Act.  
            The federal government advised states that one way states  
            could demonstrate compliance was to develop an Olmstead plan  
            and stakeholder committee to address implementation of the  
            plan's goals and objectives.  The committee, which meets  
            quarterly, is led by the Secretary along with the Chair, and  
            directors also participate from the departments of Social  
            Services, Aging, Health Care Services, Developmental Services,  
            and Rehabilitation.  There were also at least 30  
            non-government organizations with members represented on the  
            committee as of January 2015.  According to the Alzheimer's  
            Disease and Related Disorders Committee was established in  








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            1988 and continues to meet to provide ongoing advice,  
            assistance, and planning support concerning the needs of  
            persons with Alzheimer's disease and related disorders.
          
          6.Existing long-term care strategic plans.  According to CHHS,  
            California has a number of plans on long-term care.  For  
            example, in 2010, CHHS and the Alzheimer's Association  
            collaborated on California's State Plan for Alzheimer's  
            disease: An Action Plan for 2011-2021.  In addition to the  
            Olmstead Plan and the State Plan for Alzheimer's Disease, a  
            Centers for Medicare and Medicaid Services (CMS) grant  
            provided funding for a 2009 California LTC Financing Study  
            that provided a review of the existing LTSS populations,  
            Medi-Cal funding for services and supports and identified new  
            strategies the state could consider to provide these services  
            in a more cost effective way that also increased resources to  
            support living more independently in the community.  Also, SB  
            910 (Vasconcellos, Chapter 948, Statutes of 1999) required  
            CHHS to develop a statewide strategic plan to address the  
            impending demographic, economic, and social changes tied to  
            California's increasingly diverse and rapidly growing aging  
            population.  Funding was provided to the University of  
            California which produced a series of reports addressing the  
            topics specified in SB 910. 

          7.Double referral.  A previous version of this bill was heard in  
            the Senate Governmental Organization Committee on April 14,  
            2015, and passed by an 8-3 vote. 
            
          8.Related legislation.  SB 571 (Liu) would have required CHHS to  
            update the standards for CalCareNet and create an Internet Web  
            site that provides information to consumers, caregivers, and  
            health and social service providers on how to effectively  
            navigate long-term care services and that assists consumers,  
            caregivers, and health and social service providers in making  
            informed decisions relating to long-term care services. SB 571  
            was held in the Senate Committee on Appropriations.

            AB 310 (Mathis) would require the Insurance Commissioner to  
            commission an annual study comparing the statutory  
            requirements for long-term care products in this state with  
            the statutory requirements governing long-term care products  
            as defined. AB 310 also requires the commissioner to provide  
            an annual report to the Legislature comparing the  
            marketability and affordability of long-term care insurance  








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            products in this state with similar products in other states.  
            AB 310 is currently pending hearing in the Assembly Committee  
            on Insurance.

            AB 1235 (Gipson) would require the home upkeep allowance for  
            Medi-Cal beneficiaries in long-term care facilities to be  
            based on the actual cost to maintain the beneficiary's home  
            and allow Medi-Cal beneficiaries in long-term care facilities  
            that do not have a home to establish a transitional needs fund  
            to set aside up to $7,500 for the purpose of securing a home.  
            AB 1235 was held in the Assembly Committee on Appropriations. 


          9.Prior legislation.  AB 332 (Calderon of 2015) would have  
            required the Insurance Commissioner to convene a task force to  
            examine the components necessary to design a statewide  
            long-term care insurance program, as specified. AB 332 was  
            vetoed by the Governor.  In his veto message, the Governor  
            states, "Since the federal government and a number of private  
            organizations have undertaken essentially the same task, I  
            don't think that this bill is necessary. Moreover, I'm  
            hesitant to start down a path that may lead to a large and  
            potentially costly new mandate."
          
            AB 2014 (Berg of 2006) would have established the California  
            Department of  Adult and Aging Services for the purpose of  
            coordinating and promoting those programs that support adults  
            who are aging or disabled so that they may  remain in their  
            homes and communities as long as practically possible. AB 2014  
            was referred to the Senate Committee on Human Services but was  
            never heard. 

            SB 2008 (Alquist Chapter 339, Statutes of 2008) expands the  
            membership of the Alzheimer's Disease and Related Disorders  
            Advisory Committee, and requires the Committee to update the  
            1987 Task Force Report on Alzheimer's and make recommendations  
            to the Secretary and Legislature.

            AB 452 (Mazzoni Chapter 895, Statutes of 1999) established the  
            Long-Term Care Council to coordinate long-term care policy  
            development and program operations, and provide leadership in  
            developing a long-term care system from the array of existing  
            programs.  The bill contained a sunset of the council  
            effective January 1, 2007. 









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            SB 910 required CHHS, with the advice of the California  
            Commission on Aging, to develop a statewide strategic plan for  
            regarding aging and long-term care issues, and to provide  
            three annual reports to the Legislature beginning July 1,  
            2000.

            SB 139 (Mello, Chapter 303, Statutes of 1988) established the  
            Alzheimer's Disease and Related Disorders Committee as well as  
            a grant program and report requirements.


          10.Support.  Writing in support of this bill, the California  
            Association of Area Agencies on Aging (C4A) states that  
            uncoordinated services for older adults and adults with  
            disabilities have created barriers in services, and that  
                                                                 services need to be individualized to empower older adults to  
            live independently in the community.  C4A supports the notion  
            to charge the Secretary with the responsibility to coordinate  
            aging and long-term care services and to convene a  
            coordinating council.  The California Commission on Aging  
            writes that silos and fragmentation have long impeded the  
            delivery of services to the state's most frail and vulnerable  
            adults. Through creation of a Council, this bill focuses the  
            attention of 23 state departments and divisions on their  
            shared role in meeting the needs of a growing population of  
            older adults and persons with disabilities. The Council's  
            development of an Aging & Long-Term Care Services Strategic  
            Plan will spell out the steps to better organize and  
            coordinate the administration and delivery of critical LTSS.

          11.Support (prior version):  The California Retired Teachers  
            Association states that "fractured oversight and the  
            complexity of the administrative 'spider web' have been  
            ongoing issues of discussion in recent years, especially with  
            heightened interest in improving the system of long-term care.  
             For example, nursing homes are overseen by the Department of  
            Public Health, while residential care facilities for the  
            elderly are under the jurisdiction of the Department of Social  
            Services.  As our population ages and requires more nuanced  
            and specialized care, the artificial bifurcation of programs  
            within the administration is illogical and burdensome to  
            navigate for seniors, their families, and caregivers.   
            Additionally, lack of coordination between state departments  
            has created a system with compromised transparency and  
            accountability, meaning that bad actors regulated by one  








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            department may subsequently be licensed to run programs under  
            the banner of a second department."  The California Retired  
            Teachers Association believes that this bill will improve the  
            likelihood that community-based services will meet the needs  
            of seniors, reducing hospitalizations and institutional  
            placements and ultimately improving their health and  
            well-being. The National Association of Social Workers states  
            that silos and fragmentation have long been a problem in the  
            delivery of services to the state's most frail and vulnerable  
            adults, and that this bill will enhance coordination and  
            provide consumers with the services they need. 

          12.Policy Comment. A prior version of this bill called for a  
            reorganization  and major restructuring of state departments  
            to create a new Department of Community Living within CHHS and  
            establish an Assistant Secretary of Aging and Long-term Care  
            Coordination with an extensive list of requirements on the  
            Assistant Secretary and Department of Community Living. While  
            this bill has been significantly narrowed to require the  
            development of a council and strategic plan, it is not clear  
            how this Council and another strategic plan will bring about  
            the outcome sought by proponents (i.e., better integration and  
            delivery of LTSS).  With respect to CalQualityCare.org, CHHS  
            points out that the data are available elsewhere.  A Website  
            where all data are brought together in one place for  
            California consumers is worthwhile but the state may not be  
            best situated to operate the Website given its track record  
            with technology projects.  
          
           SUPPORT AND OPPOSITION  :
          Support:  California Association of Area Agencies on Aging 
                    California Commission on Aging


          Support (prior version) :
                    California Alzheimer's Association
                    California Chapter of the National Association of  
                    Social Workers
                    California Collaborative for Long Term Services and  
                    Supports
                    California Commission on Aging
                    California Foundation for Independent Living Centers
                    California Retired Teachers Association
                    Congress of California Seniors
                    Justice in Aging








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                    LeadingAge California
                    National Association of Social Workers
                    Service Employees International Union (SEIU) United  
                    Long Term Care Workers
                    State Independent Living Council

          
          
                                      -- END --