BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1223
                                                                  Page  1

          Date of Hearing:   April 26, 2011

                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
                                 Paul J. Cook, Chair
              AB 1223 (Committee on Veterans Affairs) - As Introduced:  
                                  February 18, 2011
           
          SUBJECT  :   Medi-Cal: Public Assistance Reporting Information 
          System.

           SUMMARY  :   The Department of Health Care Services ("DHS") 
          administers a 2-year, three-county pilot program (the "Program") 
          to utilize the federal Public Assistance and Reporting 
          Information System (PARIS) to identify veterans and their 
          dependents or survivors who are enrolled in the Medi-Cal program 
          and assist them in obtaining federal veterans' health care 
          benefits.   Specifically,  this bill  :  will make the pilot 
          program permanent and statewide.

           EXISTING LAW:  Requires the DHS to:

          (a) Establish the Program to utilize the federal Public 
          Assistance Reporting Information System (PARIS) to identify 
          veterans and their dependents or survivors who are enrolled in 
          Medi-Cal and assist them in obtaining federal veteran health 
          care benefits.

          (b) Select three consenting counties that have in operation a 
          United States Department of Veterans Affairs (USDVA) medical 
          center to participate in the Program.

          (c) Exchange information with PARIS and identify veterans and 
          their dependents or survivors who are receiving Medi-Cal 
          benefits in the Program counties.

          (d) Refer identified Medi-Cal beneficiaries who are receiving 
          high-cost services, including long-term care, to county veteran 
          service officers (CVSOs) to obtain information regarding, and 
          assistance in obtaining, USDVA benefits.

          (e) Prior to commencement of the Program, do all of the 
          following:

          (1) Enter into an agreement with the California Department of 
          Veterans Affairs (CDVA) to perform CVSO outreach services in 








                                                                  AB 1223
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          connection with the pilot program. The CDVA agreement shall 
          contain performance standards that would allow the department to 
          measure the effectiveness of the pilot program.

          (2) Enter into any agreements that are required by the federal 
          government to utilize the PARIS system.

          (3) Perform any information technology activities that are 
          necessary to utilize the PARIS system.

          (f) Monitor the two-year pilot program, evaluate the outcomes 
          and savings, and provide the fiscal committees of the 
          Legislature with a report on the findings and recommendations. 
          If the department determines that the pilot program is cost 
          effective, it may implement the program statewide at any time 
          and continue operation of PARIS indefinitely.

          (g) Implement the pilot program by July 1, 2009.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   The Project should help leverage the PARIS system to 
          assist in identifying those veterans who in effect have double 
          coverage.  Identifying and, as appropriate, assisting those 
          veterans to transition from Medi-Cal to the federal system for 
          coverage could result in cost savings to the state.  A report is 
          due on the progress of the Project later this year.

          An analysis conducted by the Legislative Analyst's Office (LAO) 
          in 2007 stated that implementing PARIS could save the state 
          millions of dollars annually in General Fund costs by shifting 
          eligible veterans enrolled in Medi-Cal to the USDVA health care 
          system.  According to the LAO report, 144,000 veterans and 
          dependents on Medi-Cal coverage could be eligible for 
          comprehensive medical care and health services through the USDVA 
          health care system.  It is estimated that connecting only ten 
          percent of these veterans will save the state $25 million 
          annually. 

           Previous Legislation: 

           AB 1183 (Budget Committee, Stats. 2008) authorized a two-year 
          pilot program for the use of PARIS by Department of Health Care 
          Services (DHCS). The legislation instructed DHCS to establish 
          the pilot program by July 1, 2009, and to report to the 








                                                                  AB 1223
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          Legislature the effectiveness of the program. AB 1183 granted 
          DHCS the option to make PARIS a permanent program if the program 
          was deemed effective. As of this date, PARIS has not been 
          permanently implemented. Further, the measure required that only 
          three counties needed to participate in the pilot program, with 
          a stipulation that each participating county have a USDVA 
          medical center.  

          AB 3082 (Veterans Affairs Committee, 2008) would have required 
          any state or public assistance agency using PARIS to identify 
          veterans enrolled in the Medi-Cal program for the purpose of 
          assisting them in obtaining federal health care benefits. 
          Additionally, the measure required CDVA to develop a plan for 
          handling data-match information given to County Veterans Service 
          Officers (CVSO). The measure died on the Senate Appropriations 
          Suspense File. 

          AB 1568 (Committee on Veterans Affairs, 2009) would have made 
          PARIS pilot project a permanent, statewide program. The measure 
          was gutted and amended into a different subject matter. 
            
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550