BILL ANALYSIS �
AB 1223
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Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1223 (Committee on Veterans Affairs) - As Introduced:
February 18, 2011
Policy Committee: HealthVote:18-0
Veteran's Affairs Vote: 9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Department of Health Care Services (DHCS)
to use 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. It
also deletes the previous authorization for a similar two-year
pilot project.
FISCAL EFFECT
1)Additional administrative costs to DHCS and CDVA, likely in
the range of $300,000 (50% GF) to expand the pilot project
statewide. Activities would include identification, outreach,
and facilitation of enrollment of veterans into the federal VA
benefits. Costs would subside in future years as fewer
veterans are identified in the Medi-Cal system.
2)Potentially significant cost savings to the Medi-Cal program.
According to the Legislative Analyst's Office, full
implementation of the PARIS match system and subsequent
enrollment of identified veterans in federal veterans' health
care benefits could save the state as much as $500 million
($250 million GF) annually. The amount and timing of actual
cost savings will depend on how quickly the project is
implemented throughout the state.
3)DHCS has already implemented a pilot program that is expected
to have resulted in cost savings. Additional savings
specifically related to this bill will depend on the level
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cost savings the state is currently experiencing due to the
pilot program. DHCS has not finalized an analysis of the pilot
at this time.
COMMENTS
1)Rationale . According to the author, the purpose of this bill
is to remove the pilot project nature of the provisions in
existing law and require DHCS to implement the program
statewide. The author relies on an analysis by the
Legislative Analyst's Office (LAO) in 2007 that stated
implementing PARIS could save the state millions of dollars
annually in General Fund cost by shifting eligible veterans
enrolled in Medi-Cal to the federal Department of Veteran's
Affairs (USDVA) health care system. According to the LAO
Report, 144,000 veterans and dependents on Medi-Cal coverage
could be eligible for services through the USDVA health care
system. DHCS currently has the authority to expand the pilot
statewide, but is waiting until the results of the pilot
project are complete in order to make a determination to
proceed with statewide adoption.
2)Pilot program . According to DHCS, the PARIS-Veterans pilot
program was implemented on July 1, 2009. DHCS entered into a
memorandum of understanding with the CDVA to operate the
PARIS-Veterans pilot program. Under the pilot, the CDVA is
focusing outreach efforts on veterans and their dependents or
survivors who are receiving Medi-Cal benefits and who are
receiving high-cost services in pilot counties. CDVA is
tracking the contact of these individuals and reporting
outcomes to DHCS.
The pilot program outreach efforts have reportedly resulted in
some of the individuals choosing to no longer be enrolled in
Medi-Cal and have allowed DHCS to better coordinate care with
the US DVA system of health care. The pilot ends on July 1,
2011. Actual data resulting from the PARIS-Veterans pilot
program will be presented in a Legislative Report that is due
on November 1, 2011. DHCS has authority under existing law to
implement the pilot program statewide if the department
determines it is cost-effective.
3)Related Legislation . AB 1568 (Committee on Veterans Affairs)
in 2009, would have made PARIS pilot project a permanent,
statewide program. AB 1658 was amended into a different
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subject matter.
AB 3082 (Committee on Veterans Affairs) of 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. It also required CDVA to develop a plan for handling
data-match information given to a CVSO. AB 3082 died on the
Senate Appropriations Suspense File.
AB 1183 (Committee on Budget), Chapter 758, Statutes of 2008,
requires DHCS to establish a two-year pilot program for the
use of PARIS by July 1, 2009, and to report to the Legislature
the effectiveness of the program, and included authority for
DHCS to make PARIS a permanent program if the program was
deemed cost-effective.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081