BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 930|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 930
          Author:   Evans (D), et al.
          Amended:  As introduced
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  4-3, 04/26/11
          AYES:  Liu, Hancock, Wright, Yee
          NOES:  Emmerson, Berryhill, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  6-3, 05/09/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Runner


           SUBJECT  :    In-home supportive services:  enrollment and 
          fingerprinting
                        requirements

           SOURCE  :     California Association of Public Authorities 
          for IHSS
                      Disability Rights California 
                      SEIU-UHW


           DIGEST  :    This bill repeals requirements that In-Home 
          Supportive Services (IHSS) recipients provide fingerprint 
          images and that provider timesheets include spaces for 
          provider and recipient fingerprints, and repeals the 
          prohibition against providers using a post office box 
          address to receive their paychecks.

           ANALYSIS  :    Existing law:
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          1.Establishes the in-home supportive services program to 
            provide domestic and personal-care services to aged 
            individuals and to persons with a disability in order to 
            assist them to remain safely in their homes.

          2.Establishes the Medi-Cal program through which health 
            care services are provided to qualified low-income 
            persons.

          3.Provides personal care services to IHSS recipients who 
            are eligible for the Medi-Cal program in lieu of 
            providing those services under the IHSS program.

          4.Requires the Department of Social Services, in 
            consultation with county welfare departments, to develop 
            protocols and procedures for obtaining fingerprint images 
            of all individuals who are being assessed or reassessed 
            to receive supportive services.

          5.Requires that, by July 1, 2011, the standardized 
            timesheet used to tract the work performed by providers 
            of IHSS include spaces for the index fingerprints of the 
            provider and the recipient.

          6.Requires that providers complete their enrollment form 
            using a physical address and prohibits their use of a 
            post office box address.

          7.Prohibits counties from mailing providers' paychecks to a 
            post office box address unless the county approves a 
            provider request to do so.

          This bill:

          1.Repeals the requirement that IHSS recipients provide 
            fingerprint images at the time of assessment or 
            reassessment.

          2.Repeals the requirement that the standardized timesheet 
            include designated spaces for the index fingerprints of 
            the provider and the recipient.

          3.Deletes the requirements and prohibitions related to the 

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            use of a post office box address by an IHSS provider.

          Background
           
          There are currently 19 personnel years attached to IHSS 
          fraud detection, including 14 investigators, two 
          supervisors, a section chief, an analyst, and an office 
          technician.  The investigators are headquartered in San 
          Diego, Los Angeles, and Sacramento.  The department notes 
          that all investigators are peace officers and or public 
          safety officers, responsible for protecting Medicaid 
          dollars, preserving program integrity, protecting and 
          serving the public, and take action when necessary. 

          The Department of Health Care Services (DHCS) reports that 
          in June of 2010, there were 447,635 recipients of IHSS and 
          405,328 active providers in the program.  During the fiscal 
          year, the department:

                 Received 2458 complaints (0.5 percent of  the 
               number of recipients) 
                 Made 347 unannounced home visits in response to 
               complaints
                 Opened 193 criminal investigations
                 Closed 107 criminal investigations with no action
                 Referred 51 complaints to the Department of Justice 
               (0.01 percent of the number of recipients)
                 Referred 577 complaints to other agencies (0.13 
               percent of the number of recipients)
                 Initiated recovery of funds in 70 investigations

          DHCS is also responsible, working in cooperation with 
          county district attorneys and others, for identifying 
          overpayments that may be the result of fraud or errors of 
          various kinds, including clerical.  With nine counties 
          reporting (counties that include 70 percent of the IHSS 
          caseload) $4.15 million in overpayments were identified 
          during the fiscal year and $624,000 has been recovered.  
          See the table below.


                       --------------------------------------------- 
                      |   FY 2009-10 In-Home Supportive Services    |
                      |                Overpayments                 |

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                       --------------------------------------------- 
                      |---------------+--------------+-------------|
                      |               |Identified    |Recovered    |
                      |---------------+--------------+-------------|
                      |Fresno         |$149,263.33   |$64,336.26   |
                      |---------------+--------------+-------------|
                      |Imperial       |$31,312.98    |Not Reported |
                      |---------------+--------------+-------------|
                      |Orange         |$287,932.99   |$192,290.08  |
                      |---------------+--------------+-------------|
                      |Riverside      |$106,160.87   |$12,733.00   |
                      |---------------+--------------+-------------|
                      |Sacramento     |$2,082,828.00 |$83,709.00   |
                      |---------------+--------------+-------------|
                      |San Bernardino |$190,101.94   |$139,901.94  |
                      |---------------+--------------+-------------|
                      |San Diego      |$65,499.28    |$5605.29     |
                      |---------------+--------------+-------------|
                      |San Joaquin    |$180,233.84   |$10,809.37   |
                      |---------------+--------------+-------------|
                      |Los Angeles    |$1,102,004.92 |$120,126.16  |
                      |               |              |             |
                      |---------------+--------------+-------------|
                      |               |              |             |
                      |---------------+--------------+-------------|
                      |Total          |$4,145,245.36 |$623,905.81  |
                      |               |              |             |
                       -------------------------------------------- 

          The 2009-10 estimated expenditures for IHSS was $5.7 
          billion, including administration, and $5.3 billion 
          excluding administration (figures contained in the May 
          Revision).  If the rate of overpayment in California's 
          remaining counties is the same as in these nine counties, 
          then overpayments, which include clerical errors and other 
          mistakes as well as fraud, represent about one-tenth of one 
          percent (0.1 percent) of those expenditures.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

           Major Provisions                2011-12     2012-13    

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           2013-14   Fund  
          Repeal of three IHSS                              Over 
          $50,000 in avoided costs;                         
          Federal/General
          anti-fraud provisions    unknown, potential forgone savings

           SUPPORT  :   (Verified  5/10/11)

          California Association of Public Authorities for IHSS 
          (co-source) 
          Disability Rights California (co-source)
          SEIU-UHW (co-source) 
          American Civil Liberties Union
          California Alliance for Retired Americans
          California Disability Community Action Network 
          Californians for Disability Rights, Inc.
          California Foundation for Independent Living Centers
          California In-Home Supportive Services Consumer Alliance
          California State Association of Counties
          California United Homecare Workers Union, SEIU/AFSCME Local 
          4034
          Communities United in Defense of Olmstead
          Contra Costa County
          County Welfare Directors Association of California
          In Home Supportive Services Public Authority
          The Arc 
          Pamela Hoye
          Personal Assistance Services Council of Los Angeles County
          United Cerebral Palsy in California
          United Domestic Workers of America/AFSCME Local 
          3930/AFL-CIO
          Western Center on Law & Poverty


           ARGUMENTS IN SUPPORT  :    The California State Association 
          of Counties and the County Welfare Directors Association 
          write that "the incidence of IHSS fraud is overstated."  Of 
          24,000 cases reviewed (including both randomly selected 
          cases and those referred for suspicious activity), 523 (two 
          percent) were referred for further investigation and less 
          than one percent were found to involve fraud.  These 
          numbers were similar over each of three years.   There are 
          better uses for government funds than these purchases of 
          equipment and review of fingerprints.  Many letters in 

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          support claim that there is no evidence that the use of  
          post office boxes results in higher levels of fraud.


          CTW:nl  5/10/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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