BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                      CONSENT 


          Bill No:  SB 1477
          Author:   Committee on Health   
          Introduced:3/9/16  
          Vote:     21 

           SENATE HEALTH COMMITTEE:  9-0, 4/13/16
           AYES:  Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,  
            Pan, Roth, Wolk

           SUBJECT:   Health


          SOURCE:    Author

          DIGEST:  This bill requires the California Health Benefit  
          Exchange to also be known as Covered California, replaces  
          references from the now-repealed Healthy Families Program to the  
          Medi-Cal program, and from the repealed AIM-Linked Infants  
          Program to the Medi-Cal Access Program, and makes a technical  
          change to ensure that trade associations remain eligible for  
          federal emergency preparedness funds.

          ANALYSIS:  
          
          Existing federal law requires, under the Patient Protection and  
          Affordable Care Act (ACA, Public Law 111-148), as amended by the  
          Health Care Education and Reconciliation Act of 2010 (Public Law  
          111-152), each state, by January 1, 2014, to establish an  
          American Health Benefit Exchange that makes qualified health  
          plans available to qualified individuals and qualified  
          employers. Requires, if a state does not establish an Exchange,  
          the federal government to administer the Exchange. 

          Existing state law:









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          1)Establishes the California Health Benefit Exchange (known as  
            Covered California) in state government, and specifies its  
            duties and authority. Requires Covered California to be  
            governed by a board that includes the Secretary of the  
            California Health and Human Services Agency and four members  
            with specified expertise who are appointed by the Governor and  
            the Legislature. 

          2)Establishes the Medi-Cal Program, administered by the  
            Department of Health Care Services (DHCS), which provides  
            comprehensive health benefits to low-income children up to 266  
            % of the federal poverty level (FPL), parents and adults up to  
            138 % of the FPL, pregnant women, and elderly, blind or  
            disabled persons, who meet specified eligibility criteria.

          3)Establishes the Medi-Cal Access Program, which was formerly  
            known as the Access for Infants and Mothers Program or AIM) as  
            a low-cost health coverage program for pregnant women and  
            infants. The Medi-Cal Access Program provides coverage to  
            pregnant women with a household income between 208% and 317%  
            of the federal poverty.

          4)Establishes provisions of law to govern those instances when  
            federal funding is allocated and expended for public health  
            preparedness and response by local health jurisdictions,  
            hospitals, long-term health care facilities, clinics,  
            emergency medical systems, and poison control centers for the  
            prevention of, and response to, bioterrorist attacks and other  
            public health emergencies.

          5)Requires federal funding received by the Department of Public  
            Health (DPH) for bioterrorism preparedness and emergency  
            response to be subject to appropriation in the annual Budget  
            Act or other statute. Requires that that funds appropriated  
            for these purposes are to be allocated through the use of  
            agreements that are not subject to the State Contract Act, as  
            specified.

          This bill:

          1)Requires the California Health Benefit Exchange to also be  
            known as Covered California, and deems any reference to the  








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            California Health Benefit Exchange or the Exchange to refer to  
            Covered California.

          2)Replaces references from the now-repealed Healthy Families  
            Program to the Medi-Cal program, and from the repealed  
            AIM-Linked Infants Program to the Medi-Cal Access Program. 

          3)Clarifies that trade associations are eligible for federal  
            emergency preparedness funds by including trade associations  
            in the list of eligible entities that may receive funds  
            through the use of agreements that are not subject to the  
            State Contract Act.


          Comments
          
          1)Author's statement.  According to the author, this is an  
            omnibus committee bill intended to make technical, clarifying,  
            or noncontroversial changes to various provisions of law  
            relating to health care. This bill revises law in three areas:  
            formally recognizing Covered California as the name of the  
            California Health Benefit Exchange as Covered California while  
            retaining the ability to continue using the full California  
            Health Benefit Exchange if necessary for legal purposes;  
            correcting outdated terminology by replacing references to the  
            now-repealed Healthy Families Program and the AIM-Linked  
            Infants Program to the Medi-Cal program and the Medi-Cal  
            Access Program, respectively; and, clarifying a bill from last  
            year that allowed trade associations to be eligible for  
            federal emergency preparedness funds by also adding trade  
            associations to a related provision of law governing how these  
            funds are allocated.
            
          Prior Legislation

          AB 1149 (Wood, Chapter 93, Statutes of 2015) added trade  
          associations to the list of entities that are eligible to  
          receive federal funding, that has been allocated to DPH for  
          public health preparedness and response; 

          SB 900 (Alquist, Chapter 659, Statutes of 2010), established  
          Covered California as an independent public entity within state  








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          government, and requires Covered California to be governed by a  
          board composed of the Secretary of the Agency, or his or her  
          designee, and four other members appointed by the Governor and  
          the Legislature who meet specified criteria; 

          AB 1494 (Committee on Budget, Chapter 28, Statutes of 2012),  
          transitioned children enrolled in the Healthy Families Program  
          to the Medi-Cal Program beginning January 1, 2013, in four  
          Phases throughout 2013; and, 

          SB 857 (Committee on Budget, Chapter 31, Statutes of 2014),  
          transferred the coverage of pregnant women through AIM to DHCS  
          and renamed AIM as the Medi-Cal Access Program.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified4/19/16)




          California Association of Health Facilities




          OPPOSITION:   (Verified4/19/16)


          None received


          ARGUMENTS IN SUPPORT:     This bill is supported by the  
          California Association of Health Facilities (CAHF), which states  
          that recently, DPH has stated that statutory clean-up to AB 1149  
          (Wood) of 2015 is needed to continue the status quo of who is  
          eligible to receive funding through the Hospital Preparedness  
          Program for strengthening public health emergency preparedness.  
          This bill will assure that trade associations, such as CAHF, can  








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          continue to participate in the program, as it has for years.



          Prepared by:Vince Marchand/ HEALTH /
          4/20/16 15:39:04


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