BILL ANALYSIS                                                                                                                                                                                                    �





                                                                  AB 1223

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          GOVERNOR'S VETO
          AB 1223 (Veterans Affairs Committee)
          As Amended  August 24, 2011
          2/3 vote

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          |ASSEMBLY:  |78-0 |(August 13,     |SENATE: |36-0 |(July 6, 2012) |
          |           |     |2012)           |        |     |               |
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          |ASSEMBLY:  |78-0 |(August 13,     |        |     |               |
          |           |     |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% 










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          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 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. 
           
          GOVERNOR'S VETO MESSAGE  :

               While I support efforts to inform veterans about the 
               health care options that best meet their needs, 
               current law already requires screening of Medi-Cal 
               beneficiaries for veteran status and allows for 
               expansion of the Public Assistance Reporting 
               Information System (PARIS) data match project beyond 
               the current pilot counties. 

               Rather than requiring the PARIS pilot project to be 
               implemented statewide, more effort should go into 
               understanding which health care benefits work best 










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               for veterans, and how that outreach can be most 
               effective before expending additional resources 
               statewide. 



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



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