BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1580
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          ASSEMBLY THIRD READING
          AB 1580 (Bonilla)
          As Introduced February 2, 2012
          Majority vote 

           HEALTH              13-6        APPROPRIATIONS      12-5        
           
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          |Ayes:|Monning, Ammiano, Atkins, |Ayes:|Fuentes, Blumenfield,     |
          |     |Bonilla, Eng, Gordon,     |     |Bradford, Charles         |
          |     |Hayashi,                  |     |Calderon, Campos, Davis,  |
          |     |Roger Hern�ndez, Torres,  |     |Gatto, Hall, Hill, Lara,  |
          |     |Mitchell, Pan, V. Manuel  |     |Mitchell, Solorio         |
          |     |P�rez, Williams           |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Logue, Garrick, Mansoor,  |Nays:|Harkey, Donnelly,         |
          |     |Nestande, Silva, Smyth    |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes technical and clarifying changes to provisions 
          enacted in AB 1296 (Bonilla), Chapter 641, Statutes of 2011, 
          relating to revised and simplified applications for state health 
          subsidy programs.  Specifically,  this bill  :  

          1)Clarifies that a requirement granting an applicant benefits 
            during the time the application for eligibility is being 
            reviewed, also known as presumptive eligibility (PE), is not 
            intended to grant a right to PE beyond what is currently 
            required. 

          2)Clarifies that only when the applicant appears to be eligible 
            for Medi-Cal under the aged, blind, or disabled category, but 
            is determined to be ineligible after a screening for the new 
            Modified Adjusted Gross Income (MAGI) category, the 
            application will be forwarded to the Medi-Cal program for 
            further determination. 

          3)Makes other technical and clarifying changes.

           EXISTING LAW  :  

          1)Establishes the federal Medicaid Program, Medi-Cal in 
            California, administered by the Department of Health Care 








                                                                  AB 1580
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            Services (DHCS), to provide comprehensive health care services 
            and long-term care to pregnant women, children, and people who 
            are aged, blind, and disabled.

          2)Establishes the Managed Risk Medical Insurance Board and 
            authorizes it to administer the Healthy Families Program, the 
            Access for Infants & Mothers Program, the Major Risk Medical 
            Insurance Program, and the Pre-Existing Condition Insurance 
            Plan.

          3)Requires, under federal law, each state, by January 1, 2014, 
            to establish an American Health Benefit Exchange that makes 
            qualified health plans available to qualified individuals and 
            qualified employers. 

          4) Requires, under federal law, by January 2014, that states 
            offer Medicaid coverage to all adults, under age 65, with 
            income up to 133% of the federal Poverty Level using a MAGI 
            calculation. 
          5)Requires, under federal law, by January 2014, that state 
            enrollment systems for persons eligible for health subsidy 
            programs utilize a single streamlined application for 
            specified public subsidy programs.  

          6)Provides that certain limited categories of eligible 
            individuals, such as pregnant women, are granted immediate, 
            temporary Medi-Cal coverage for limited benefits by qualified 
            providers.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill has negligible direct state costs.  The 
          clarifications it provides narrow the scope of two requirements 
          in current law related to the eligibility and enrollment system 
          for health programs.  Without this bill, these requirements may 
          have been construed to compel some level of additional 
          administrative workload or state cost in state health programs, 
          relative to that required under the provisions of this bill.

           COMMENTS  :  According to the sponsor, Western Center on Law and 
          Poverty (WCLP), this bill is needed to fulfill the terms of an 
          agreement made with the Director of DHCS to amend the language 
          of AB 1296.  The agreement is memorialized in a letter dated 
          September 21, 2011.  According to the letter, WCLP agreed to 
          pursue amendments in the 2012 session to clarify two provisions. 








                                                                  AB 1580
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           Specifically, the Director had expressed concern that language 
          describing individuals who may be potentially eligible for 
          Medi-Cal "was too broad" and the sponsor agreed to limit it to 
          "those who may be eligible as aged, blind or disabled."  
          Secondly, the Director requested clarification that AB 1296 was 
          not intended to grant presumptive eligibility to any new 
          categories.  
           

          Analysis Prepared by  :    Marjorie Swartz / HEALTH / (916) 
          319-2097 

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