BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 963
                                                                  Page  1

          Date of Hearing:   May 20, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 963 (Ammiano) - As Amended:  April 28, 2009  

          Policy Committee:                              Health Vote:18-0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill deems individuals and families who have completed  
          periodic or annual renewal processes in the Food Stamps Program  
          to be eligible for continued Medi-Cal coverage regardless of  
          whether the Medi-Cal annual renewal form is completed. In  
          addition, this bill requires the California Department of Health  
          Care Services (DHCS) to make all necessary technology and policy  
          changes to ensure continuity of Medi-Cal coverage per  
          requirements of this bill and to promulgate related regulations.

           FISCAL EFFECT  

          1)Annual increased costs of $3 million (50% GF) to $5 million  
            (50% GF) to continue Medi-Cal coverage on behalf of  
            individuals who would otherwise lose coverage. This estimate  
            is based on data and assumptions about families eligible for  
            Medi-Cal and Food Stamps, but who are not beneficiaries of  
            CalWORKs. 

          2)Unknown administrative costs to DHCS of more than $500,000  
            (50% GF) to convene a stakeholder group, promulgate  
            regulations, and make technology, policy, and process changes  
            pursuant to this bill.

           COMMENTS  

           1)Rationale  . This bill is co-sponsored by Western Center on Law  
            & Poverty (WCLP), the Children's Partnership, and United Way  
            of the Bay Area to streamline Medi-Cal eligibility for  
            individuals and families also receiving Food Stamps. This bill  
            also addresses pre-populating eligibility data fields from the  
            CalWORKs program.   

           2)Background  . Current law requires counties to take steps to  






                                                                  AB 963
                                                                  Page  2

            prevent the loss of Medi-Cal eligibility.  For example, if a  
            county receives information about a change to Medi-Cal  
            eligibility, the county must continue Medi-Cal coverage during  
            the eligibility redetermination. In addition, the county is  
            prohibited from terminating Medi-Cal coverage unless a  
            specific eligibility requirement is not met.  Counties are  
            required to make every reasonable effort to gather available  
            information related to other public program data. This bill  
            increases tools available to counties at the state level with  
            regard to shared data systems of public programs and by  
            reducing Medi-Cal continuity barriers. Many Medi-Cal  
            beneficiaries who are dropped from coverage later return to  
            the program and are found eligible. This bill reduces this  
            cycle and increases continuity of health coverage. 
           
          Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081