BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 62
                                                                  Page  1

          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 62 (Monning) - As Amended:  April 28, 2011 

          Policy Committee:                              HealthVote:19-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill makes technical, clarifying changes to provisions 
          related to pilot projects to improve health care delivery for 
          individuals dually eligible for Medicaid and Medicare. 
          Specifically, this bill:

          1)Requires the Department of Health Care Services (DHCS) to 
            consult with specified stakeholders in developing and 
            implementing a pilot project for a Medicaid or Medicare 
            demonstration project or waiver.

          2)Authorizes DHCS to respond to a request for proposal from the 
            federal Centers for Medicare and Medicaid Services (CMS).

           FISCAL EFFECT  

          Minor, absorbable federal funds costs to DHCS to implement a 
          stakeholder process.  DHCS has been awarded a federal grant for 
          the purpose of improving coordination of individuals dually 
          eligible for Medicaid and Medicare, and this bill would require 
          them to spend some of these funds to ensure stakeholder 
          participation.

           COMMENTS  

           1)Rationale  .  This bill makes technical changes to existing law 
            relating to the Section 1115(a) Medi-Cal Demonstration "Bridge 
            to Reform" Waiver.  Legislation authorizing the waiver 
            included provisions authorizing the establishment of pilot 
            projects that integrate Medi-Cal and Medicare services.  
            However, the Center for Medicaid and Medicare Services (CMS) 
            later indicated that these projects should move forward 








                                                                  AB 62
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            outside the waiver. The author states that this bill clarifies 
            that the dual eligible project is not a part of the Medi-Cal 
            Demonstration Waiver.  The author also contends that this bill 
            requires consultation with stakeholders to ensure that DHCS 
            continues to be informed by interested and affected members of 
            the stakeholder community.

           2)Related Legislation  .  AB 342 (John A. P�rez), Chapter 723, 
            Statutes of 2010, enacted the Low Income Health Program and 
            Coverage Expansion and Enrollment Projects to provide health 
            care benefits to uninsured adults up to 200% of the federal 
            poverty level, at county option through a Medi-Cal waiver 
            demonstration project.

            SB 208 (Steinberg), Chapter 714, Statutes of 2010, implemented 
            provisions of the 2010 Section 1115 replacement waiver 
            including establishing provisions regarding public hospital 
            funding, mandatory enrollment of seniors and people with 
            disabilities in a Medi-Cal managed care plans, and pilot 
            projects to provide coordinated care to children in the 
            California Children's Service and to persons who are eligible 
            for Medi-Cal and Medicare.


           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081