BILL ANALYSIS
SB 791
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Date of Hearing: June 30, 2009
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall, Jr., Chair
SB 791 (Yee) - As Amended: May 19, 2009
SENATE VOTE : 36-1
SUBJECT : In-home supportive services: COBRA
SUMMARY : Provides that, for purposes of in-home supportive
services providers, the entity that administers health benefits
under the federal Consolidated Omnibus Budget Reconciliation Act
(COBRA) shall be the same entity that implements a federal COBRA
subsidy under the American Recovery and Reinvestment Act of 2009
(ARRA).
EXISTING LAW
1)Establishes the in-home supportive services (IHSS) program
through which eligible aged, blind, and disabled individuals
receive services that enable them to stay safely in their
homes.
2)Provides that counties are responsible for the administration
of the IHSS program.
3)Directs counties to act as an employer for IHSS providers or
to establish a public authority or a non-profit consortium to
act as an employer for IHSS providers.
4)Provides, through federal law (COBRA), for temporary
continuation of health care coverage, at group rates, for
certain former employees, retirees, spouses, former spouses,
and dependent children.
5)Provides, through federal law (ARRA), for certain employees,
whose employment involuntarily ends between September 1, 2008,
and December 31, 2009, to have a lower payment for health care
benefits through COBRA for up to nine months.
FISCAL EFFECT : None
COMMENTS :
SB 791
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New federal law : Effective March 1, 2009, ARRA, the federal
stimulus bill, Title III, Section 3001, adds Premium Assistance
for COBRA Benefits providing that certain COBRA-qualified
beneficiaries will only have to pay 35% of their regular COBRA
premium. The federal government will pay the other 65% through
a credit on payroll taxes paid by the individual's employer or
former employer.
Need for this bill : According to the author, this bill would
clarify existing law to meet the federal requirement that the
entity responsible for implementing the ARRA subsidy program be
the same entity that administers COBRA health benefits for IHSS
providers. In an All-County Letter dated April 16, 2009, the
Department of Social Services (DSS) noted that the entity
administering the health benefit is typically the county or an
entity it delegates this function to, such as the public
authority. Consistent with ARRA, the All-County Letter advised
counties that, because DSS "is not the health benefit
administrator or an entity to whom premiums are payable under
COBRA, DSS will not pay, and cannot claim reimbursement for the
65% COBRA subsidy under [ARRA]." (All-County Letter No. 09-21.)
The author states that this bill "mirror[s] the guidance that
[DSS] has provided to counties and Public Authorities to ensure
that IHSS providers who are eligible for COBRA benefits will
also receive the subsidy as required in [ARRA]."
QUESTION : In light of the All-County Letter and clear
understanding of the requirements of ARRA, is this bill
necessary?
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
(sponsor)
California Commission on Aging (CCoA)
United Domestic Workers of America, AFSCME
Opposition
None on file
SB 791
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Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089