BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2374
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2374 (Nestande) - As Amended:  April 5, 2010 

          Policy Committee:                              Human  
          ServicesVote:5 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill extends the commencement date from January 1, 2009, to  
          January 1, 2011, for an In-Home Supportive Services (IHSS)  
          program pilot project that allows severely impaired IHSS  
          recipients the choice of receiving services through a public  
          authority or a contracting non-profit or proprietary agency.  In  
          addition, it specifies that the project can be established with  
          less than five consenting counties. 

           FISCAL EFFECT  

          The original pilot project is estimated to cost approximately  
          $350,000 General Fund per year. Absent this extension, it is  
          likely that those funds would remain in the GF. 

           COMMENTS  

           1)Rationale  . As noted below, in 2008, the Legislature enacted AB  
            1674 (Jones) to create a consumer choice demonstration project  
            in IHSS. The project was to test the results of allowing  
            consumers to choose whether to have an independent provider or  
            a provider supplied by a non profit or proprietary agency.  
            Each county was to assess the relative consumer satisfaction,  
            cost effectiveness, average turnover and worker satisfaction  
            under the pilot program compared to the existing program.  

            To date, no county has signed up to participate in the  
            project. AB 2374 would extend the start date of the pilot to  
            January 1, 2011, thus giving counties more time to enter into  
            the pilot program. In addition, this bill would allow the  
            state to implement the program with less than five counties. 








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           2)Consumer Choice Pilot Project  . AB 1674 (Jones; Chapter 319,  
            Statutes of 2008) created pilot projects in five consenting  
            counties to offer severely impaired IHSS recipients a choice  
            of having services provided by a contracting nonprofit or  
            proprietary agency or by an individual provider through a  
            public authority.  The pilots would expand consumer choices by  
            allowing recipients to choose whether to use a nonprofit or  
            for-profit contractor, or the existing system administered by  
            public authorities.  The purpose is to enable recipients,  
            particularly those with severe impairments who are the least  
            able to self-direct their services, to have an alternative in  
            which the contractor takes responsibility for hiring,  
            scheduling, and supplying back-up workers when needed.

           3)In-Home Supportive Services Program  . The IHSS Program helps  
            pay for services so that the elderly, disabled, or blind  
            individuals can remain in their own homes. To be eligible, an  
            applicant must be over 65 years of age, disabled, or blind.  
            Disabled children are also eligible. IHSS is considered an  
            alternative to out-of-home care, such as nursing homes or  
            board and care facilities. 

            IHSS services are: 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 the mentally impaired. IHSS consists of four  
            programs, including: Personal Care Services Program (PCSP),  
            IHSS Plus Waiver Program (IPW), IHSS Residual Program (IRP),  
            and Medi-Cal Waiver Personal Care Program (MWPCS). The PCSP,  
            IPW, and IRP are administered at the county level by county  
            welfare departments and at the State level by the Adult  
            Programs Division within CDSS. The Medi-Cal Waiver Personal  
            Care Services (MWPCS) Program is administered through  
            Department of Health Care Services. A portion of the costs for  
            IHSS services are paid by federal funding. The entire program  
            consists of over 400,000 recipients and on average 325,000  
            IHSS workers. 

            Under the current program, counties are allowed to determine  
            whether they want to provide individualized services through a  
            public authority or contracted services through a private  
            provider.  Currently 56 of 58 counties operate a public  
            authority to provide individualized services.  In addition,  








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            six counties contract out a portion of their IHSS caseload to  
            private agencies.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081