BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2206
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                AB 2206 (Atkins) - As Introduced:  February 23, 2012 

          Policy Committee:                              HealthVote:19-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Department of Health Care Services, in 
          their implementation of specified pilot projects that provide 
          coordinated care to individuals dually eligible for Medicaid and 
          Medicare, to present a Program of All-Inclusive Care for the 
          Elderly (PACE) plan as an enrollment option if there is a PACE 
          plan available.

           FISCAL EFFECT  

          Required enrollee notification costs should be minor and 
          absorbable.

           COMMENTS  

           1)Rationale  . The author indicates PACE is a proven model of care 
            for frail seniors on Medi-Cal and Medicare.  Studies show that 
            enrollment in PACE is associated with several beneficial 
            outcomes, including fewer hospitalizations and nursing home 
            admissions and improved quality of life. In spite of this, 
            experience with the enrollment of the seniors and the special 
            needs population into managed care left the PACE programs out 
            of the marketing materials sent by the state to potential 
            enrollees. PACE programs had to send separate mailings to a 
            population that is by definition frail, resulting in enrollee 
            confusion. The contractors that worked with the state to 
            provide informational seminars and call centers were not 
            trained in the availability of PACE as an option or how to 
            refer interested enrollees to a PACE program.

           2)PACE  . PACE programs are a comprehensive, community-based model 
            of care for frail, chronically ill older adults whose 








                                                                  AB 2206
                                                                  Page  2

            significant functional and cognitive impairments make them 
            nursing home-eligible. The first PACE program, On Lok, which 
            was started in the Chinatown section of San Francisco in 1971, 
            eventually evolved into a nationally recognized and replicated 
            model of integrated care and services. PACE programs receive a 
            capitated (per member per month) payment from Medicare and 
            Medicaid, and are fully at risk for all inpatient, outpatient, 
            and nursing home care that a PACE enrollee requires. PACE 
            programs also provide other support services such as adult day 
            care, meals, home care, transportation, and social services.  
            DHCS currently contracts with five PACE programs throughout 
            the state, and reports that five additional organizations in 
            California are in various stages of development of new PACE 
            programs.

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081