BILL ANALYSIS �
AB 1223
Page 1
ASSEMBLY THIRD READING
AB 1223 (Veterans Affairs Committee)
As Introduced February 18, 2011
Majority vote
VETERANS AFFAIRS 9-0 HEALTH 18-0
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|Ayes:|Cook, Pan, Atkins, Block, |Ayes:|Monning, Logue, Ammiano, |
| |Knight, Nielsen, V. | |Atkins, Bonilla, Eng, |
| |Manuel P�rez, Williams, | |Garrick, Gordon, Hayashi, |
| |Yamada | |Bonnie Lowenthal, |
| | | |Mansoor, Mitchell, |
| | | |Nestande, Pan, |
| | | |V. Manuel P�rez, Silva, |
| | | |Smyth, Williams |
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Harkey, |
| |Blumenfield, Bradford, |
| |Charles Calderon, Campos, |
| |Davis, Donnelly, Gatto, |
| |Hall, Hill, Lara, |
| |Mitchell, Nielsen, Norby, |
| |Solorio, Wagner |
| | |
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SUMMARY : Requires the Department of Health Care Services (DHCS)
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 statewide and repeals language making PARIS a two-year
pilot program where DHCS selects three consenting counties that
have in operation a United States Department of Veterans Affairs
(USDVA) medical center to participate in the pilot.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Additional administrative costs to DHCS and the California
AB 1223
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Department of Veterans Affairs (CDVA), likely in the range of
$300,000 (50% General Fund (GF)) to expand the pilot project
statewide. Activities would include identification, outreach,
and facilitation of enrollment of veterans into federal USDVA
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 (LAO), 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
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 : 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 LAO in 2007, which states
that implementing PARIS could save the state millions of dollars
annually in General Fund costs by shifting eligible veterans
enrolled in Medi-Cal who might be eligible for the USDVA health
care system. According to the LAO analysis, 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. The author argues that connecting only 10%
of these veterans will save the state $25 million annually.
AB 1183 (Budget Committee), Chapter 758, Statutes of 2008,
required DHCS to utilize the federal PARIS by July 1, 2009 as a
two-year pilot program to identify veterans and their dependents
or survivors who are enrolled in the Medi-Cal Program and assist
them in obtaining federal veteran health care benefits. Under
existing law, DHCS must select three consenting counties that
have in operation a USDVA medical center to participate in the
pilot program. DHCS is required, under the pilot program, to
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exchange information with PARIS and identify veterans and their
dependents or survivors who are receiving Medi-Cal benefits in
the pilot program counties.
According to DHCS, the PARIS-Veterans pilot project 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. DHCS is also
performing the PARIS matching process on a pilot basis to test
the cost effectiveness prior to implementing statewide. For the
first two matches, DHCS selected beneficiary records from three
California counties. In the third match, DHCS selected from six
California counties. In the most recent PARIS-Veterans match,
DHCS selected from 10 California counties. Since
implementation, DHCS has participated in eight instances of the
quarterly PARIS match process during the two year implementation
of the pilot program. Based on these matches, DHCS has
successfully identified veterans and their dependents or
survivors who are enrolled in the Medi-Cal Program. DHCS and
the CDVA have identified hundreds of Medi-Cal beneficiaries that
are simultaneously enrolled in the USDVA system of health care.
The pilot program outreach efforts have 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 USDVA
system of health care. DHCS does not identify the total number
of veterans receiving Medi-Cal benefits. 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.
Analysis Prepared by : Marjorie Swartz / HEALTH / (916)
319-2097
FN: 0001049