BILL ANALYSIS Ó SB 1477 Page 1 SENATE THIRD READING SB 1477 (Committee on Health) As Introduced August 19, 2016 Majority vote SENATE VOTE: 39-0 -------------------------------------------------------------------- |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+-----------------------+---------------------| |Health |15-0 |Wood, Maienschein, | | | | |Bonilla, Burke, | | | | |Campos, Chiu, | | | | | | | | | | | | | | |Roger Hernández, | | | | |Lackey, Nazarian, | | | | |Olsen, Patterson, | | | | |Ridley-Thomas, | | | | |Rodriguez, Thurmond, | | | | |Waldron | | | | | | | | | | | | -------------------------------------------------------------------- SUMMARY: Clarifies that references to the California Health SB 1477 Page 2 Benefit Exchange (Exchange) are deemed to refer to Covered California, replaces references to the now-repealed Healthy Families Program (HFP) and Access for Infants and Mothers Program (AIM) Linked Infants Program and replaces those with the Medi-Cal Program and the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. Authorizes the Department of Health Care Services (DHCS) to enter into contracts for undertaking administrative activities by the department's Mental Health and Substance Use Disorder Services Division relating to various components of the federal Children's Health Insurance Program, Medicaid Managed Care and Revisions Related to Third Party Liability, and make provisions of these contracts publicly available, and sunsets this authority on January 1, 2020. Corrects an error in code reference relating to the Medi-Cal 2020 demonstration project. 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. 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. SB 1477 Page 3 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. COMMENTS: 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, SB 1477 Page 4 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. Analysis Prepared by: Rosielyn Pulmano / HEALTH / (916) 319-2097 FN: 0004473