BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 2274                                      
          A
          AUTHOR:        Beall                                        
          B
          VERSION:       As introduced
          HEARING DATE:  June 10, 2010                                
          2
          FISCAL:        Appropriations                               
          2
                                                                      
          7
          CONSULTANT:                                                 
          4
          Hailey
                                        

                                     SUBJECT
                                         
                      In-home supportive services program

                                     SUMMARY  

          Provides that persons receiving in-home supportive services  
          (IHSS) from an organization authorized through a federal  
          waiver has the right to select any qualified person to  
          provide care.

                                     ABSTRACT  

           Current law
           1)  Establishes the IHSS program under which qualified  
          aged, blind, or disabled persons receive services that  
          permit them to remain safely in their own homes.

          2)  Allows a person who receives IHSS services through  
          either a contract or a managed care provider to select any  
          qualified person to provide care.

          3)  Establishes the federal Medicaid program to pay for a  
          range of health and ancillary services for qualifying  
          persons - primarily persons who are aged, blind, or  
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          disabled and of low income.

          4)  Allows states to apply for and receive waivers to  
          certain Medicaid requirements in order to provide health  
          and ancillary services in different ways, including  
          providing home and community-based services provided in  
          lieu of services in more institutional settings.

           This bill
           1)  Allows a person who receives IHSS services from an  
          organization authorized through a federal waiver to Section  
          1115 of the Medicaid program to select any qualified person  
          to provide care.


                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee, this  
          bill has minor, absorbable costs.

                            BACKGROUND AND DISCUSSION  

           The in-home supportive services program (IHSS)
           The IHSS program helps pay for services that enable  
          elderly, disabled, or blind individuals can remain safely  
          in their own homes.  IHSS services include, but are not  
          limited to, housecleaning, meal preparation, laundry,  
          grocery shopping, personal care services (such as bowel and  
          bladder care, bathing, grooming and paramedical services),  
          accompaniment to medical appointments, and protective  
          supervision for people with mental impairments.

          IHSS recipients have the right to choose their personal  
          workers.  Most IHSS recipients receive care services from  
          an individual provider.  Some recipients, however, receive  
          services through contract or managed care providers.   
          Current law provides that, in those instances, the  
          recipient nonetheless may, subject to program requirements,  
          select any qualified person to provide IHSS services.

           Medicaid waivers
           The Kaiser Commission on Medicaid and the Uninsured  
          provides a primer on Section 1115 of the Social Security  
          Act.  According to the commission, Section 1115 gives the  
          Secretary of the Department of Health and Human Services  




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          authority to waive aspects of the law to permit states to  
          undertake "research and demonstration" projects that  
          further the purposes of Medicaid and the State Child Health  
          Insurance Program (SCHIP).

          These waivers allow states to use federal Medicaid and  
          SCHIP funds in ways that are not otherwise allowed under  
          federal law.  Section 1115 waivers are not new to Medicaid  
          and SCHIP.  However, in August 2001, the Administration  
          released new waiver guidelines, called the Health Insurance  
          Flexibility and Accountability Initiative, encouraging  
          states to submit waivers.  The commission notes that this  
          new initiative, combined with state fiscal pressures, has  
          led to an increase in the number of states seeking or  
          expanding a Section 1115 waiver.

          This summer, California is renewing its Section 1115  
          Medicaid waiver, which is due to expire on July 31, 2010.   
          As part of the 2009-10 Budget, ABx4 6 was enacted to slow  
          the long-term Medi-Cal expenditure growth rate through  
          significant restructuring of the Medi-Cal program.  This  
          legislation commits the Department of Health Care Services  
          to pursuing a Section 1115 waiver that will restructure the  
          organization and delivery of health care for populations  
          that include the most medically vulnerable, high cost  
          Medi-Cal beneficiaries with complex chronic conditions,  
          co-morbidities, and the highest needs for on-going health  
          care.

          The specifics of California's new Section 1115 waiver have  
          yet to be determined.  It is likely, however, that IHSS  
          will be included as a component of any coordinated systems  
          of care included under the new waiver.  This bill extends  
          the right of recipients to choose their provider to any  
          IHSS program that might be authorized under California's  
          new Section 1115 waiver.

           Assembly votes
           Human Services Committee   4-1
          Appropriations Committee 10-5
          Floor                    48-16


                                    POSITIONS  





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          Support:       Service Employees International Union,  
          California State Council
                               (sponsor)
                         California Association of Public Authorities

          Oppose:   None received






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