BILL ANALYSIS                                                                                                                                                                                                    Ó





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          GOVERNOR'S VETO
          AB 1263 (John A. Pérez)
          As Amended July 10, 2013
          2/3 vote

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          |ASSEMBLY:  |55-23|(May 29, 2013)  |SENATE: |25-9 |(September 11, |
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          |ASSEMBLY:  |53-24|(September 11,  |        |     |               |
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           Original Committee Reference:   HEALTH  

           SUMMARY  :  Establishes the Medi-Cal Patient Centered  
          Communication (CommuniCal) program at the Department of Health  
          Care Services (DHCS) to provide and reimburse for certified  
          medical interpretation services to limited English proficient  
          (LEP) Medi-Cal enrollees.  Establishes a certification process  
          and registry of CommuniCal medical interpreters (CCMI) at DHCS  
          and grants collective bargaining rights with the state.

           The Senate amendments  : 

          1)Revise the certifying body to be DHCS instead of the  
            California Department of Human Resources (CalHR).

          2)Require DHCS to establish a Community Advisory Committee as  
            specified

          3)Require DHCS to, by September 1, 2014, in consultation with  
            the Community Advisory Committee, approve an examination and  
            certification process to test and certify the competency of  
            medical interpreters and delete the requirement that CalHR  
            select an examination within 120 days of implementation of  
            this bill. 











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          4)Require DHCS to develop, monitor, and evaluate interpreter  
            competency, qualifications, training, certification, and  
            continuing education requirements for medical interpreters.

          5)Add the following options as a condition of certification, in  
            addition to an examination administered by a nonprofit  
            organization:

             a)   Pass an examination developed by a state-established  
               language testing and certification program with a written  
               and oral component that meets specified standards;

             b)   Achieve the designation of Certified Healthcare  
               Interpreter from the Certification Commission for  
               Healthcare Interpreters;

             c)   Achieve the designation of Certified Medical Interpreter  
               from the National Board of Certification for Medical  
               Interpreters; or,

             d)   Hold a current interpreter's certification under  
               existing provisions.

          6)Add a process for authorizing CommuniCal services to be  
            provided by an interpreter of languages of lesser diffusion or  
            languages for which a CCMI examination has not been created. 

          7)Revise requirements for a provisional authorization that allow  
            interpreters to be authorized prior to the development of the  
            full testing and certification program at DHCS and require the  
            person meet the full standards by December 31, 2016. 

          8)Delete the requirement that the base reimbursement rate be set  
            at $60 per hour and instead provide that it be subject to  
            collective bargaining. 

          9)Make other technical and clarifying changes.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:











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          1)One-time costs of $1.4 million to develop program guidelines,  
            seek necessary federal approvals, and develop billing systems  
            (50% General Fund (GF), 50% federal funds). 

          2)One-time costs of about $50,000 to develop regulations  
            relating to collective bargaining of translators by the Public  
            Employment Relations Board (GF). 

          3)One-time costs of about $90,000 and ongoing costs of about  
            $50,000 to oversee an election by translators to choose a  
            collective bargaining agent (GF). 

          4)Periodic costs up to $1 million for negotiating a memorandum  
            of understanding with the established bargaining unit and  
            overseeing the implementation by CalHR (GF). 

          5)Ongoing costs of about $30 million per year to provide  
            translation services in fee-for-service Medi-Cal (GF and  
            federal funds). 

          6)Unknown costs in Medi-Cal managed care (GF and federal funds).  
             Under current law, health plans are required to provide  
            interpretation services, including managed care plans that  
            contract with DHCS.  It is unclear whether the bill's  
            requirement to provide "certified medical interpretation  
            services" at reimbursement rates subject to collective  
            bargaining would increase costs for translation services,  
            above the costs already being incurred. 

          7)The federal financial participation rate for the costs above  
            may vary.  For interpretive services provided to children and  
            their family members, the state can claim a 75% federal  
            financial participation rate.  However, those costs are only  
            eligible for a 75% federal cost share if they are billed as  
            administrative costs (as opposed to benefits).  For childless  
            adults, the rate is generally 50%. 

           COMMENTS  :  According to the author, this bill is to establish a  
          program to provide and reimburse for medical interpretation  
          services to LEP Medi-Cal enrollees and to allow for collective  
          bargaining for certified medical interpreters.  The author cites  










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          data that show more than 40% of Californians speak a language  
          other than English at home.  In addition, almost seven million  
          Californians are estimated to speak English "less than very  
          well."  Other research finds that language barriers can  
          contribute to inadequate patient evaluation and diagnosis, lack  
          of appropriate and/or timely treatment, or other medical errors  
          that can jeopardize patient safety and lead to unnecessary  
          procedures and costs.  The author argues that today, language  
          assistance in medical settings is provided by trained or  
          untrained staff or in an informal manner by family members or  
          friends.  In conclusion, the author states that California has  
          an opportunity to develop a more comprehensive language  
          assistance program by seeking additional federal funding for  
          medical interpreter services in the Medi-Cal program.

          Supporters such as Interpreting for California, The Low-Income  
          Self-Help Center and Catholic Charities of Santa Clara County,  
          write that this bill address the need for interpreters in  
          Medi-Cal as the state will experience greater demand when 35% of  
          the newly eligible enrollees speak English less than well.   
          These supporters state that this bill will make it possible for  
          the 2.5 million Medi-Cal enrollees who are LEP to communicate  
          with healthcare providers, reducing medical errors and improving  
          the standard of care by providing access to trained  
          interpreters.  Other supporters such as The American Federation  
          of State, County and Municipal Employees, AFL-CIO and Somos  
          Mayfair writes in support that, with the expansion of Medi-Cal  
          and the implementation of the California Health Benefit Exchange  
          under federal health care reform, the state has a clear  
          opportunity to create an interpreters' program that will allow  
          patients and providers to clearly communicate with each other.   
          According to these supporters, in 2003 California passed the  
          strongest law in the country requiring all private health plans  
          to provide language assistance services to LEP individuals  
          beginning in 2009.  However, the supporters assert, patient  
          interpretation needs remain unmet despite these laws and  
          explicit policy directives to Medi-Cal managed care plans to  
          provide interpreter services.  According to the Transnational  
          Institute for Grassroots Research and Action (TIGRA), LEP  
          Californians frequently reported problems related to their  
          experience of care.  TIGRA asserts that LEP enrollees of the  










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          state's seven largest health plans were more likely than English  
          proficient enrollees to report problems understanding their  
          physician (1.2% versus 2.6%) and believe they would have  
          received better care if they were of a different race/ethnicity  
          (14% versus 3.2%).  
           
          GOVERNOR'S VETO MESSAGE  :

          "The bill would require the Department of Health Care Services  
          to establish the CommuniCal program to certify and restructure  
          current interpreter services provided under Medi-Cal. 

          "California has embarked on an unprecedented expansion to add  
          more than a million people to our Medi-Cal program. Given the  
          challenges and the many unknowns the state faces in this  
          endeavor, I don't believe it would be wise to introduce yet  
          another complex element."


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


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