BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 547 --------------------------------------------------------------- |AUTHOR: |Liu | |---------------+-----------------------------------------------| |VERSION: |January 4, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |January 13, | | | | |2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Teri Boughton | --------------------------------------------------------------- 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 SB 547 (Liu) Page 2 of ? 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. SB 547 (Liu) Page 3 of ? 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; SB 547 (Liu) Page 4 of ? 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; SB 547 (Liu) Page 5 of ? 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 SB 547 (Liu) Page 6 of ? 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 SB 547 (Liu) Page 7 of ? 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 SB 547 (Liu) Page 8 of ? 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 SB 547 (Liu) Page 9 of ? 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. SB 547 (Liu) Page 10 of ? 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 SB 547 (Liu) Page 11 of ? 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 SB 547 (Liu) Page 12 of ? LeadingAge California National Association of Social Workers Service Employees International Union (SEIU) United Long Term Care Workers State Independent Living Council -- END --