BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 1223
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 1223 (Veterans Affairs Committee)
        As Amended  August 24, 2011
        Majority vote
         
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        |ASSEMBLY:  |79-0 |(May 31, 2011)  |SENATE: |36-0 |(July 6, 2012) |
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         Original Committee Reference:    V.A.  

         SUMMARY  :  Repeals language creating a two-year pilot program 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 assists them in obtaining 
        federal veterans' health care benefits.  Specifically,  this bill  
        makes the pilot program permanent and statewide. 

         The Senate amendments  add a co-author to the bill.

         EXISTING LAW  provides that the Department of Health Care Services 
        (DHCS) administers a two-year, three-county pilot program to utilize 
        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.  

         AS PASSED BY THE ASSEMBLY  , this bill was substantially the same 
        except Assembly Member Beth Gaines was not a co-author.

         FISCAL EFFECT  :  According to the Senate Appropriations Committee, 
        potential annual net savings to the Medi-Cal program in the low 
        millions, depending on outreach efforts by  DHCS and local county 
        veteran service officers (50% General Fund, 50% federal funds).

         COMMENTS :  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.  Under current law (AB 1183 
        (Budget Committee), Chapter 758, Statutes of 2008), the DHCS has 
        operated a pilot project to use information in PARIS to identify 
        Medi-Cal enrollees who may be eligible for federal veteran's 
        benefits.  DHCS, in coordination with the Department of Veterans 
        Affairs and local county veteran service officers, has worked to 
        contact those enrollees to advise them of the federal benefits they 
        are entitled to and the potential financial benefits to the veteran 
        to access federal services instead of Medi-Cal.  DHCS has 








                                                                AB 1223
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        implemented the pilot project in 10 counties and has realized two 
        year net savings of about $1.4 million (50% General Fund, 50% 
        federal funds).

        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 United States Department of Veterans 
        Affairs (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 
        10% of these veterans will save the state $25 million annually. 


         Analysis Prepared by  :    John Spangler / V. A. / (916) 319-3550 
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