BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 369 
                                                                  Page  1

          Date of Hearing:  May 6, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 369 (Yamada) - As Amended:  April 13, 2009 

          Policy Committee:                             HealthVote:18-0
                        

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes an exemption to a current law moratorium  
          on the licensing of new Adult Day Health Centers (ADHC).  
          Specifically, this bill exempts two state-owned, state-operated,  
          bond-and federally-financed veterans' home properties for which  
          planning began prior to 2002. 

           FISCAL EFFECT  

          1)One-time costs during ramp up of $114,000 (50% GF) and annual  
            costs $450,000 (50% GF) to provide ADHC services to 40  
            Medi-Cal eligible individuals eventually enrolled over 2010-11  
            and 2011-12 in the ADHC programs at two veterans' medical  
            campuses that will be open at the end of calendar year 2010.  
            Annual costs per ADHC participant are $11,000. 

          2)This bill allows the significant planning and investment in  
            these two vets' homes be realized with respect to ADHC as a  
            part of the care continuum. Only a portion of the vets served  
            on these campuses are Medi-Cal eligible. Therefore the fiscal  
            impact of the moratorium modification is fairly narrow and  
            supports federal and state efforts in veterans' health care. 

           COMMENTS  

           Rationale  . This bill, sponsored by the California Association  
          for Adult Day Services (CAADS), modifies a moratorium placed on  
          ADHC expansion. The moratorium was established by SB 1103  
          (Committee on Budget), Chapter 228, Statutes of 2004. The  
          moratorium has been extended since it was established to hold  
          program costs steady and increase oversight over various  








                                                                  AB 369 
                                                                  Page  2

          enrollment and payment issues. 

          ADHC are licensed community-based day care programs providing a  
          variety of health, therapeutic, and social services to elderly  
          and disabled adults at risk of being placed in a nursing home.  
          There are over 300 ADHC centers statewide serving from 25 to 275  
          individuals at each site. Approximately 38,000 clients are  
          served statewide and total caseload has declined by  
          approximately 13% since the moratorium has been place.


          Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081