BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2232
                                                                  Page  1

          Date of Hearing:   April 20, 2010
          Chief Counsel:      Gregory Pagan


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                   AB 2232 (Nielsen) - As Amended:  April 14, 2010


           SUMMARY  :   Requires that a $5 fee bee charged by the California  
          Department of Corrections (CDCR) for each inmate-initiated  
          medical visit of an inmate confined in the state prison, rather  
          than merely authorizing the fee, extends the fee to dental  
          visits, and requires that inmates be charged for medically  
          directed follow up visits.  Specifically,  this bill  :  

          1)Requires that a $5 fee be charged for each inmate-initiated  
            medical visit of an inmate confined in the state prison,  
            rather than merely authorizing the imposition of the $5 fee. 

          2)Extends the $5 fee charged by CDCR for each inmate-initiated  
            medical visit dental visits, and commencing with the 2011-12  
            fiscal year requires the Department of Finance to annually  
            adjust for inflation the fees charged to the inmates.

          3)Deletes existing provisions of law that provide that an inmate  
            shall not be charged for the visit if the inmate has no money  
            in his or her personal account and requires that if the inmate  
            does not have sufficient funds in his or her account to cover  
            the fee the account shall be debited and may carry a negative  
            balance.  Any amounts owing must be paid before spending on  
            other items is permitted and shall be subordinate only to  
            court-ordered restitution.

          4)Deletes existing provisions of law that prohibits the charging  
            of a fee for any follow up medical visits at the direction of  
            medical staff, and requires that follow up medical or dental  
            visits be charged to the inmate in an amount equal to 25% of  
            the fee initially charged to the inmate.

          5)Provides that any negative balance associated with an inmate's  
            prison account shall be discharged from the trust accounting  
            system at the time of the inmate's release.  The balance shall  
            be billed to the inmate and shall be due six months from the  








                                                                  AB 2232
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            date of release.  Any unpaid balance shall be reinstated into  
            the trust accounting system if the inmate returns to custody.

           EXISTING LAW  :

          1)Provides that the Director of Department of Corrections is  
            authorized to charge a fee in the amount of $5 for each inmate  
            initiated medical visit of an inmate confined in the state  
            prison.  [Penal Code Section 5007.5(a).]

          2)States that the fee shall be charged to the prison account of  
            the inmate.  If the inmate has no money in his or her personal  
            account, there shall be no charge for the medical visit, and  
            the inmate shall not be denied medical care because of a lack  
            of funds in his or her prison account.  [Penal Code Section  
            5007.5(b) and (c).]

          3)Provides that the medical provider may waive the fee for any  
            inmate-initiated treatment and shall waive the fee for any  
            life-threatening or emergency situation, defined as those  
            health services required for alleviation of severe pain or for  
            immediate diagnosis and treatment of unforeseen medical  
            conditions that if not immediately treated could lead to  
            disability or death.  [Penal Code Section 5007.5(d).]

          4)Prohibits inmates being charged for follow up medical visits  
            at the direction of medical staff.  [Penal Code Section  
            5007.5(e).]

          5)Requires that all moneys received by the Director of  
            Department of Corrections, upon appropriations by the  
            Legislature, be expended to reimburse the Department of  
            Corrections for direct provision of inmate health care  
            services.  [Penal Code Section 5007.5(f).]   

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)State Auditor Recommends Co-Payment Program Be Eliminated  :   
            The California State Auditor found that the costs of  
            administering the co-payment program could not be justified by  
            the revenue it creates.  [See California State Auditor,  
            California Department of Corrections: Utilizing Managed Care  
            Practices Could Ensure More Cost Effective (2000) at 30-31.]








                                                                  AB 2232
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          The State Auditor explained, "State law authorizes the  
            department to charge inmates a $5 co-payment for each medical  
            visit they request.  Beginning in November 1994, the  
            department began charging inmates the co-payment, although the  
            fee is waived if inmates do not have any funds in their trust  
            accounts.  The fee is not charged for certain services, such  
            as emergency, mental health, follow-up, inpatient care, and  
            diagnosis or treatment of communicable diseases.  Despite  
            initial estimates that the co-payment program would generate  
            $1.7 million each year, actual collections have averaged  
            $654,000 per year over the past four years.  The department  
            could not explain how it estimated $1.7 million in revenue or  
            give us a current estimate of the cost to administer the  
            program.  However, in December 1993, it estimated that the  
            annual costs to operate the co-payment program would be $3.2  
            million.

          "Based on these figures, we conclude that the program would need  
            to reduce health care visits sufficient to offset its  
            operating cost to be cost-effective.  Since its inception,  
            however, the department has not collected information to help  
            it make that determination.  Before implementing the program,  
            the department completed and analysis that suggested that  
            requiring co-payments would reduce inmate visits by 50  
            percent.  That analysis further estimated that inmates  
            averaged about 0.9 health care visits per month.  If the  
            co-payment program actually has reduced visits per month, or  
            about 5 or 6 visits per year.  The department is unable to  
            demonstrate that it calculates the number of current visits or  
            that the program has reduced health care visits-in short, that  
            it can justify the program at all-so we believe the program  
            should be abandoned."  

           2)Argument in Support  :  According to the  Howard Jarvis Taxpayers  
            Association  , "AB 2232 would increase fees for inmate initiated  
            medical and dental visits, and would require that the inmate  
            be charged even if they insufficient funds to cover the fees.   
            In that even, any outstanding medical bills would have to be  
            paid before spending could happen on other items.

          "Corrections spending is one of the fastest growing areas of  
            state government.  California spends nearly three times more  
            per inmate than Texas, which has almost the same number of  
            prisoners.  Much of this difference is due to prison  








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            healthcare programs.  At a time when California is facing a  
            $20 billion deficit and inmates are being let out of prison  
            early, we should be doing everything possible to ensure that  
            our budget difficulties do not intrude upon enforcing law.  AB  
            2232 ensures that inmates take some responsibility in paying  
            for their own health coverage.  This is one of the many good  
            proposed solutions to lower the astronomical $49,000/year we  
            currently spend per inmate."

           3)Arguments in Opposition  :

             a)   According to the  American Civil Liberties Union  , "The  
               Eighth requires that prison officials provide a system of  
               ready access to adequate medical care.  We are very  
               concerned that the new payment requirements of this bill  
               will have the effect of inhibiting prisoners from seeking  
               medical care.  This is problematic from a health  
               perspective, since it acts as a disincentive for prisoners  
               to seek treatment for communicable disease.  It also has  
               cost implications if inmates to do not seek care the early  
               stages than and wait until the condition or illness  
               progresses and requires more intensive and thus expensive  
               care.  We urge reconsideration of this proposal."

             b)   According to  Legal Services for Prisoners with Children  ,  
               "We oppose AB 2232 because it discourages prisoners from  
               accessing health services, inhibits medical staff from  
               identifying and intervening into health problems before  
               they become more acute and potentially much more costly to  
               treat and unfairly discriminates against prisoners who tend  
               to have significant health needs and few financial  
               resources.  Additionally our organization has concerns  
               regarding CDCR's ability to properly manage funds generated  
               from this co-payment program and, ultimately, questions  
               whether this bill will actually lead to any significant  
               reduction in prison health expenditures."

           4)Related Legislation  :  AB 1487 (Hill) would have increased the  
            fee charged for each inmate-initiated medical visit by an  
            inmate confined in a county or city jail from $3 to $6, and  
            required that the $3 fee increase be deposited in the county  
            inmate welfare fund.  AB 1487 was amended into an unrelated  
            subject matter in the Senate.

           REGISTERED SUPPORT / OPPOSITION  :   








                                                                  AB 2232
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           Support 
           
          Howard Jarvis Taxpayers Association

           Opposition 
           
          American Civil Liberties Union
          California Attorneys for Criminal Justice
          California Public Defenders Association
          California Coalition for Women Prisoners
          Family Council
          Friends Committee on Legislation
          Life Support Alliance
          Prison Law Office
          Taxpayers for Improving Public Safety
          15 private individuals
           

          Analysis Prepared by  :    Gregory Pagan / PUB. S. / (916)  
          319-3744