BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 2374                                      
          A
          AUTHOR:        Nestande                                     
          B
          VERSION:       April 5, 2010
          HEARING DATE:  June 22, 2010                                
          2
          FISCAL:        Appropriations                               
          3
                                                                      
          7
          CONSULTANT:                                                 
          4
          Hailey
                                        

                                     SUBJECT
                                         
                   In-home supportive services: pilot project


                                     SUMMARY 

          Changes the starting date and the number of counties  
          participating in a pilot project for severely impaired  
          recipients of in-home supportive services.


                                     ABSTRACT  

           Current law
           1)  Establishes the county-administered in-home supportive  
          services (IHSS) program to provide personal care and  
          domestic services to eligible aged, blind, and disabled  
          persons to enable them to live safely in their own homes.

          2)  Requires each county to ensure that IHSS services are  
          provided to all eligible recipients in accordance with the  
          county plan.

          3)  Permits IHSS services to be provided through the  
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          employment of individual providers, through a contract  
          between the county and an entity for the provision of  
          services, through the creation by the county of a public  
          authority, or through a contract between the county and a  
          nonprofit consortium.

          3)  Requires a pilot project in five counties to commence  
          January 1, 2009, wherein severely impaired recipients of  
          IHSS services will choose between receiving services  
          through a public authority or a contracting agency, which  
          can be nonprofit or proprietary.

          4)  Defines a "non-severely impaired" recipient to mean a  
          person who is assessed to need fewer than 20 hours of IHSS  
          services per week.

           This bill
           1)  Requires the pilot project to begin on January 1, 2011,  
          and authorizes the pilot project to include no more than  
          five counties.


                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee, 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 General  
          Fund.


                            BACKGROUND AND DISCUSSION  
           
          IHSS delivery modes  
                 Counties deliver IHSS services in one or a  
               combination of three service delivery modes.  First,  
               the majority of IHSS clients receive care services  
               from an individual provider: the client interviews,  
               hires, and fires a caregiver, who is not an employee  
               of the client, but serves as an independent  
               contractor.  This mode offers maximum autonomy to the  
               consumer and relieves him or her from employer tasks  
               such as withholding taxes and providing worker's  
               compensation insurance.  The employer of record is a  
               county-operated public authority or a non-profit  




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               consortium.
                 A handful of counties provide IHSS services through  
               a contract with a home care agency.  The agency  
               employs and supervises caregivers who provide care to  
               the clients in their home.  Clients can select from  
               among the caregivers employed by the home care agency.
                 In the county homemaker mode, counties employ their  
               own care providers to deliver services to clients.   
               Since they are county employees, the county is  
               responsible for their work.

           Prior legislation  
          AB 1674 (Jones), Chapter 319, Statutes of 2008, requires,  
          starting January 1, 2009, the establishment of 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 were to 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 of the legislation was  
          to enable recipients, particularly those with severe  
          impairments who may be less able to direct their services,  
          to have an alternative in which the contractor takes  
          responsibility for hiring, scheduling, and supplying  
          back-up workers when needed.

          This bill extends the start date of the pilot projects to  
          January 1, 2011, and requires the establishment of pilot  
          projects in "up to" five consenting counties, rather than  
          in five consenting counties, as stated in current law.



           Assembly votes  
          Floor          74-1
          Appropriations15-0
          Human Services  5-0

                                    POSITIONS  

          Support:       Addus Healthcare
                         County Welfare Directors Association





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          Oppose:   None received


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