BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 396
                                                                  Page  1

          Date of Hearing:   April 5, 2011
          Consultant:           Stefani Salt


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                   AB 396 (Mitchell) - As Amended:  March 30, 2011
           

          SUMMARY  :   Provides the opportunity for counties to receive 
          federal funding participation toward payments for the outpatient 
          medical costs of juvenile detainees.  Specifically,  this bill  :  

          1)Requires the Department of Health Care Services (DHCS) to 
            develop a process to allow counties to receive any available 
            federal financial participation for health care services 
            provided to juvenile detainees who are admitted as inpatients 
            in a medical institution.  

          2)Declares that a juvenile detainee who is an inpatient in a 
            medical institution shall not be denied Medi-Cal eligibility 
            because of his or her institutional status as a detainee of a 
            public institution.

          3)Mandates DHCS to consult with counties in the development of 
            this process.

          4)Requires DHCS to seek any federal approvals necessary to 
            implement the process. 

          5)Provides that these provisions shall be implemented only to 
            the extent that any necessary federal approval is obtained and 
            existing levels of federal financial participation are not 
            jeopardized.  

          6)Limits the application of this process to counties that elect 
            to voluntarily provide the nonfederal share of expenditures 
            for health care services, and would require that the federal 
            financial participation associated with services provided 
            pursuant to the process be paid to the participating counties. 
             

          7)Provides that as part of this process DHCS may exempt juvenile 
            detainees from enrollment into new or existing managed care 








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            health plans.

          8)Makes the following findings and declarations:

               a)     Federal financial participation may be available for 
                 counties that provide health care services to juvenile 
                 detainees while the juveniles are admitted as patients in 
                 a medical institution.

               b)     Current law provides that an individual under 21 
                 years of age who is an inmate of a public institution 
                 shall have his or her Medi-Cal services suspended for up 
                 to one year.

               c)     The eligibility procedures of DHCS currently do not 
                 allow counties to obtain available federal financial 
                 participation for health care services provided to 
                 juvenile detainees when they have been transferred to a 
                 medical institution for inpatient services.

               d)     Pursuant to Penal Code Section 5072 and Welfare and 
                 Institutions Code (WIC) Section 14053.7, DHCS is 
                 authorized to develop a process to maximize federal 
                 financial participation for inpatient hospital services 
                 to adult inmates residing in a state prison facility.

               e)     To reduce the fiscal strain on counties, it is 
                 imperative that DHCS work with counties to develop and 
                 implement a similar process to allow counties to obtain 
                 federal financial participation based on county 
                 expenditures for inpatient hospital services provided to 
                 juveniles in their custody.

           EXISTING LAW  :

          1)States that Medi-Cal benefits provided to an individual under 
            21 years of age who is an inmate of a public institution shall 
            be suspended in accordance federal law.  �WIC Section 
            14011.10(a).] 

          2)Declares that if an individual under 21 years of age is a 
            Medi-Cal beneficiary on the date he or she becomes an inmate 
            of a public institution, his or her benefits shall be 
            suspended effective the date he or she becomes an inmate of a 
            public institution.  Provides that the suspension will end on 








                                                                  AB 396
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            the date he or she is no longer an inmate of a public 
            institution or one year from the date he or she becomes an 
            inmate of a public institution, whichever is sooner.  �WIC 
            Section 14011.10(c).] 

          3)Provides that, notwithstanding any other provision of law, the 
            California Department of Corrections and Rehabilitation and 
            DHCS may develop a process to maximize federal financial 
            participation for the provision of inpatient hospital services 
            rendered to individuals who, but for their institutional 
            status as inmates, are otherwise eligible for Medi-Cal.  
            �Penal Code Section 5072(a).]

          4)States that notwithstanding any other provision of law, and 
            only to the extent that federal financial participation is 
            available, DHCS may provide Medi-Cal eligibility and 
            reimbursement for inpatient hospital services, as specified.  
            �WIC Section 14053.7(a).]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "�This bill] 
            would require �DHCS] to develop a process to maximize federal 
            financial participation for the health care services provided 
            by counties to juveniles in custody who would otherwise be 
            eligible for Medi-Cal.

          "Many minors who are detained in local detention facilities 
            require medical care that requires hospitalization.  �This 
            bill] would allow counties to draw down federal matching funds 
            to reimburse them for medical treatment of minors who are 
            outside of the County detention facility for more than 
            24-hours and placed in inpatient facilities for treatment of 
            their medical condition."

           2)Background  :  According to the author, "Currently, when 
            counties detain minors in a juvenile detention facility or 
            probation camp, their Medi-Cal benefits are suspended.  Most 
            minors that are taken into custody are from low-income 
            families and would generally be eligible for Medi-Cal 
            benefits.  Therefore, when a minor is in custody and is in 
            need of medical services the counties are burdened with the 
            total costs.








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          "Medical care is provided for these wards in juvenile detention 
            facilities.  However, many minors who are detained require 
            medical care that is outside of the medical services available 
            within the facility.

          "Current law suspends Medi-Cal services for up to a year of any 
            individual under the age of 21 who is an inmate of a public 
            institution.

          "Eligibility procedures of �DHCS] do not currently allow 
            counties to obtain available federal financing when inpatient 
            services are provided in a medical institution.  However, the 
            Department is authorized to develop a process to maximize 
            federal financial participation for inpatient hospital 
            services to adult inmates.

          "�This bill] would require �DHCS] to develop a process to 
            maximize federal financial participation for the health care 
            services provided by counties to juveniles in custody who 
            would otherwise be eligible for Medi-Cal.

          "�This bill] would allow the counties to seek reimbursement for 
            medical treatment of minors who are outside of the County 
            detention facility for more than 24-hours.

          "Counties have to pay the total medical costs for 
            post-adjudication minors when they are treated outside of the 
            juvenile detention facility.  �This bill] will allow for 
            counties to request reimbursement when the medical treatment 
            requires a hospital stay of more than 24 hours away from the 
            facility."


           3)Argument in Support  :  According to the  Los Angeles County 
            Board of Supervisors  , "Federal law generally suspends Medi-Cal 
            benefits for minors who are detainees in a State or local 
            juvenile detention facility.  Medi-Cal benefits, however, 
            would be permitted if a minor is admitted to a hospital and is 
            away from the detention facility for more than 24-hours.

          "�This bill] would allow counties to draw down federal matching 
            funds to reimburse them for the medical treatment of minors 
            who are hospitalized and outside of the County's detention 
            facility for more than 24-hours.








                                                                  AB 396
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          "The Los Angeles County Probation Department operates three 
            juvenile detention facilities and 18 juvenile camps.  Most of 
            the minors taken into custody are from low-income families 
            which makes them eligible for Medi-Cal.

          "Many minors detained in local detention facilities often 
            require medical care which is outside the scope of medical 
            services available at the facility.  Such medical conditions 
            requiring hospitalization include complications from asthma, 
            diabetes, epilepsy, or heart problems.  In cases where minors 
            require hospitalization for a contagious or communicable 
            disease, care at a medical facility is vital not only for 
            their health and well being, but for the other detainees and 
            probation staff before the minor returns to the detention 
            facility."

           4)Related Legislation  :  SB 695 (Hancock) allows counties to seek 
            reimbursement for Medi-Cal benefits for an individual awaiting 
            adjudication in a county juvenile detention facility or camp, 
            if that individual is eligible to receive benefits at the time 
            of their admittance.  SB 695 is a reintroduction of SB 1091 
            (Hancock) of the 2009-10 Legislative Session.

           5)Previous Legislation  :  

             a)   SB 1091 (Hancock), of the 2009-10 Legislative Session, 
               was vetoed. 

             b)   SB 1147 (Calderon), Chapter 546, Statutes of 2008, 
               required suspension of Medi-Cal benefits for up to one year 
               for an individual under 21 years of age who is an inmate of 
               a public institution. 

             c)   SB 648 (Calderon), of the 2008-07 Legislative Session, 
               would have required DHCS to suspend rather than terminate 
               Medi-Cal benefits of an incarcerated minor.  SB 648 was 
               never heard by the Senate Health Committee.

             d)    SB 1469 (Cedillo), Chapter 657, Statutes of 2006, 
               required county juvenile detention facilities to notify 
               county welfare departments about the release of a ward so 
               that eligibility for Medi-Cal can be determined prior to 
               the release of the inmate. 









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             e)   AB 1945 (Coto), of the 2005-06 Legislative Session, 
               would have required a juvenile detention facility, upon 
               release of a minor, to determine if the minor would have 
               health insurance after release, and if not, to evaluate the 
               eligibility of the minor for enrollment in appropriate 
               need-based programs.  AB 1945 was never heard by the 
               Assembly Health Committee.

             f)   AB 2004 (Yee), of the 2005-06 Legislative Session, was 
               identical to SB 648 (Calderon) of the 2008-07 Legislative 
               Session.  AB 2004 was vetoed

             g)   AB 470 (Yee), of the 2005-06 Legislative Session, was a 
               very similar to SB 648 (Calderon) of the 2008-07 
               Legislative Session.  AB 470 failed passage on the Assembly 
               floor.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees, 
          AFL-CIO
          California Psychiatric Association
          California Public Defenders Association
          Chief Probation Officers of California
          Los Angeles County Board of Supervisors
          Los Angeles Probation Officers' Union
          Riverside Sheriffs' Association

           Opposition 
           
          None
           

          Analysis Prepared by  :    Stefani Salt / PUB. S. / (916) 319-3744