BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1477|
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UNFINISHED BUSINESS
Bill No: SB 1477
Author: Committee on Health
Amended: 8/19/16
Vote: 21
SENATE HEALTH COMMITTEE: 9-0, 4/13/16
AYES: Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,
Pan, Roth, Wolk
SENATE FLOOR: 39-0, 4/21/16 (Consent)
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block,
Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,
Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,
Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,
Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,
Vidak, Wieckowski, Wolk
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR: 78-0, 8/24/16 - See last page for vote
SUBJECT: Health
SOURCE: Author
DIGEST: This omnibus committee 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replaces references from the now-repealed Healthy Families
Program to the Medi-Cal program, and from the repealed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,
permits the Department of Health Care Services (DHCS) to enter
into contracts for administrative activities to help implement
the new Medicaid Managed Care regulations, and makes a technical
change to ensure that trade associations remain eligible for
federal emergency preparedness funds.
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Assembly Amendments authorized DHCS to enter into contracts for
administrative activities by DHCS' Mental Health and Substance
Use Disorder Services Division concerning federal Medicaid
managed care regulations and associated guidance issued by the
federal government in May 2016 without going through existing
contracting requirements or review by the Office of
Administrative Law. Additionally, the amendments required
contracts entered into by DHCS for administrative activities
under this provision to be publicly available under the
California Public Records Act, and sunsetted these provisions on
January 1, 2020.
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:
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 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
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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.
6)Establishes the Medi-Cal program, administered by the DHCS,
under which health care services are provided to qualified,
low-income persons. Establishes, through federal regulations,
requirements for Medicaid managed care organizations,
including new requirements issued by the federal government in
May 2016.
This bill:
1)Requires the California Health Benefit Exchange to also be
known as Covered California, and deems any reference to the
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
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in the list of eligible entities that may receive funds
through the use of agreements that are not subject to the
State Contract Act.
4)Authorizes DHCS to enter into contracts for administrative
activities by DHCS' Mental Health and Substance Use Disorder
Services Division concerning federal Medicaid managed care
regulations and associated guidance issued by the federal
government in May 2016 without going through existing
contracting requirements or review by the Office of
Administrative Law.
5)Requires contracts entered into by DHCS for administrative
activities under this bill to be publicly available under the
California Public Records Act.
6)Sunsets the provisions in 4) and 5) above on January 1, 2020.
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 four 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; 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; and, permitting DHCS to enter into contracts for
administrative activities to help implement the new Medicaid
Managed Care Regulations.
Related/Prior Legislation
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1)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;
2)SB 900 (Alquist, Chapter 659, Statutes of 2010), established
Covered California as an independent public entity within
state 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;
3)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,
4)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.:YesLocal: No
According to the Assembly Committee on Appropriations there is
no fiscal effect.
SUPPORT: (Verified8/24/16)
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California Association of Health Facilities
OPPOSITION: (Verified8/24/16)
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
continue to participate in the program, as it has for years.
ASSEMBLY FLOOR: 78-0, 8/24/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,
Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines,
Gallagher, Cristina Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Daly, Eduardo Garcia
Prepared by:Vince Marchand/ HEALTH /
8/25/16 17:49:36
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