BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 2274
          Author:   Beall (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  3-2, 6/22/10
          AYES:  Liu, Romero, Yee
          NOES:  Emmerson, Runner

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8 

           ASSEMBLY FLOOR  :  48-26, 5/6/10 - See last page for vote


           SUBJECT  :    In-Home Supportive Services program

           SOURCE  :     Services Employees International Union 


           DIGEST  :    This bill allows an In-Home Supportive Services  
          recipient who receives services from an entity authorized  
          by a federal Section 1115 Medicaid waiver, subject to  
          program requirements, to select any qualified person to  
          provide the services, and defines "qualified person" to  
          include an employee of such an entity who is available and  
          eligible to provide the services. 

           ANALYSIS  :    Existing law:

          1.Establishes the In-Home Supportive Services (IHSS)  
            program to provide personal services and home care for  
            eligible poor, aged, blind and disabled individuals to  
                                                           CONTINUED





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            enable recipients to remain in their own homes and avoid  
            institutionalization. 

          2.Provides that IHSS recipients who receive services  
            through a contract or managed care provider may, subject  
            to program requirements, select any qualified provider  
            who is an employee of the contract or managed care  
            provider.

          This bill allows an In-Home Supportive Services recipient  
          who receives services from an entity authorized by a  
          federal Section 1115 Medicaid waiver, subject to program  
          requirements, to select any qualified person to provide the  
          services, and defines "qualified person" to include an  
          employee of such an entity who is available and eligible to  
          provide the services. 
           
          Background
           
          The IHSS Program helps pay for services so that the  
          elderly, disabled, or blind individuals can remain in their  
          own homes and avoid institutionalization.  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  
          recipieint nonetheless may, subject to program  
          requirements, select any qualified person to provide IHSS  
          services.

          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  
          authority to waive aspects of the law to permit states to  
          undertake "research and demonstration" projects that  







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          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, AB 6 4x 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT :   (Verified  7/29/10)

          Services Employees International Union (source)
          California Association of Public Authorities









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           ARGUMENTS IN SUPPORT  :    Services Employees International  
          Union states that "major changes to programs made within  
          short time frames - the 1115 waiver amendments are on a  
          course for summer 2010 - can result in accidental omissions  
          that potentially harm people who rely on the programs being  
          changed."  According to the author's office, this bill  
          simply ensures that the right of recipients to choose their  
          provider will not be interrupted or interfered with through  
          any new program model that may be authorized under  
          California's new Section 1115 waiver. 




           ASSEMBLY FLOOR  :  
          AYES:  Ammiano, Arambula, Beall, Blakeslee, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De  
            Leon, Eng, Evans, Feuer, Fong, Fuentes, Furutani,  
            Galgiani, Hall, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jones, Lieu, Bonnie Lowenthal, Ma, Monning, Nava, V.  
            Manuel Perez, Portantino, Ruskin, Salas, Saldana,  
            Skinner, Solorio, Swanson, Torlakson, Torres, Torrico,  
            Yamada, John A. Perez
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Conway, DeVore, Emmerson, Fletcher, Fuller, Gaines,  
            Garrick, Hagman, Harkey, Jeffries, Knight, Logue, Miller,  
            Nestande, Niello, Nielsen, Norby, Silva, Smyth, Audra  
            Strickland, Tran, Villines
          NO VOTE RECORDED:  Bass, Block, Cook, Gilmore, Mendoza,  
            Vacancy


          CTW:nl  7/29/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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