BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 791
                                                                  Page  1


          SENATE THIRD READING
          SB 791 (Yee)
          As Amended  May 19, 2009
          2/3 vote.  Urgency

           SENATE VOTE  :36-1  
           
           HUMAN SERVICES      5-0                                         
           
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          |Ayes:|Beall, Saldana, Hall,     |     |                          |
          |     |Portantino, Swanson       |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           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).

           FISCAL EFFECT  :  None

           COMMENTS  :

          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  
          In-Home Supportive Services (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  








                                                                  SB 791
                                                                  Page  2


          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]."


           Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089 



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