BILL ANALYSIS Ó SB 1477 Page 1 Date of Hearing: June 14, 2016 ASSEMBLY COMMITTEE ON HEALTH Jim Wood, Chair SB 1477 (Committee on Health) - As Introduced March 9, 2016 SENATE VOTE: 39-0 SUBJECT: Health. SUMMARY: Clarifies that references to the California Health Benefit Exchange (Exchange) are deemed to refer to Covered California, replaces references to the now-repealed Healthy Families Program (HFP) and Access for Infants and Mothers Program (AIM) Linked Infants Program and replaces those with the Medi-Cal Program and the Medi-Cal Access Program respectively, and includes trade associations in the list of entities that are eligible to receive federal emergency preparedness funds, as specified. EXISTING LAW: 1)Requires, under the federal Patient Protection and Affordable Care Act (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. SB 1477 Page 2 Requires, if a state does not establish an Exchange, the federal government to administer the state Exchange. 2)Establishes the Exchange (known as Covered California) 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 (CHHSA) and four members with specified expertise who are appointed by the Governor and the Legislature. 3)Establishes the Medi-Cal program, administered by the Department of Health Care Services (DHCS), which provides comprehensive health benefits to low-income children, adults, pregnant women, the elderly, and blind or disabled persons, who meet specified eligibility criteria. 4)Establishes the Medi-Cal Access Program, which was formerly known as 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 level. 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. 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. FISCAL EFFECT: None. SB 1477 Page 3 COMMENTS: 1)PURPOSE OF THIS BILL. 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 Exchange, while retaining the ability to continue using the full name if necessary for legal purposes; correcting outdated terminology by replacing references to the now-repealed HFP 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. 2)PREVIOUS LEGISLATION. a) 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. b) 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. c) AB 1494 (Committee on Budget), Chapter 28, Statutes of 2012, transitioned children enrolled in the HFP to the Medi-Cal Program beginning January 1, 2013, in four Phases throughout 2013. d) SB 900 (Alquist), Chapter 659, Statutes of 2010, established Covered California as an independent public SB 1477 Page 4 entity within state government, and requires Covered California to be governed by a board composed of the CHHSA Secretary, or his or her designee, and four other members appointed by the Governor and the Legislature who meet specified criteria. 3)SUPPORT. This bill is supported by the California Association of Health Facilities (CAHF) and writes that recently, according to DPH, statutory clean-up to AB 1149 is needed to continue the status quo which trade associations are eligible to receive funding through the Hospital Preparedness Program for strengthening public health emergency preparedness. This bill assures that trade associations, such as CAHF, can continue to participate in the program, as it has for years. REGISTERED SUPPORT / OPPOSITION: Support California Association of Health Facilities Opposition SB 1477 Page 5 None on file. Analysis Prepared by:Rosielyn Pulmano / HEALTH / (916) 319-2097