BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:       SB 280
          AUTHOR:        Lieu and Lara
          AMENDED:       January 6, 2014                             
          HEARING DATE:  January 15, 2014
          CONSULTANT:    Bain

           SUBJECT  :  Insurance affordability programs: application form.
           
          SUMMARY  : Permits, until January 1, 2015, the application form  
          for insurance affordability program coverage to include  
          additional voluntary questions on sexual orientation and gender  
          identity or expression. Requires, effective January 1, 2016, the  
          application form to include voluntary questions regarding  
          demographic data categories, including race, ethnicity, primary  
          language, disability status, sexual orientation, gender identity  
          or expression and other categories recognized by the federal  
          Secretary of the Department of Health and Human Services.

          Existing law:
          1.Requires a single, accessible, standardized paper, electronic,  
            and telephone application for insurance affordability programs  
            to be developed by the Department of Health Care Services,  
            (DHCS) in consultation with the Managed Risk Medical Insurance  
            Board (MRMIB) and the board governing Covered California (the  
            state's health benefit exchange). Requires the application  
            form to be used by all entities authorized to make an  
            eligibility determination for any of the insurance  
            affordability programs and by their agents.

          2.Defines "insurance affordability programs" as the Medi-Cal  
            program, the state's children's health insurance program  
            (CHIP, formerly the Healthy Families Program in California),  
            and coverage through a qualified health plan in Covered  
            California with an advance premium tax credit or cost-sharing  
            reduction established under federal law. 

          3.Authorizes the application form to include voluntary questions  
            regarding demographic data categories, including race,  
            ethnicity, primary language, disability status, and other  
            categories recognized by the federal Secretary of the  
            Department of Health and Human Services (DHHS) pursuant to  
            federal law.

                                                         Continued---



          SB 280 | Page 2




          This bill:
          1.Authorizes, until January 1, 2015, the application form for  
            insurance affordability program coverage to include additional  
            voluntary questions on sexual orientation and gender identity  
            or expression.

          2.Requires, effective January 1, 2016, the application form to  
            include questions that are voluntary for applicants to answer  
            regarding demographic data categories, including race,  
            ethnicity, primary language, disability status, sexual  
            orientation, gender identity or expression and other  
            categories recognized by the federal Secretary of the DHHS.

           FISCAL EFFECT  :  This bill has not been analyzed by a fiscal  
          committee.

           COMMENTS  :  
           1.Author's statement. According to the author, there is currently an  
            insufficient amount of data being collected on the lesbian, gay,  
            bi-sexual and transgender (LGBT) demographic, which makes it  
            difficult to accurately and appropriately address the health  
            disparities of the LGBT population within California. With the  
            Affordable Care Act (ACA) in place, this bill would create another  
            opportunity for Covered California and the DHCS to attempt to  
            collect this data voluntarily provided by applicants.
          
          2.Background. The ACA makes numerous changes to simplify enrollment  
            in public health coverage 
          programs. The ACA requires that an enrollment system be created that  
            allows state residents to apply for enrollment, receive an  
            eligibility determination, and renew participation in state health  
            subsidy programs. In addition, ACA requires the Secretary of DHHS  
            to develop and provide to each state a single, streamlined  
            application form that may be used to apply for all applicable  
            state health subsidy programs (Medi-Cal, Healthy Families Program,  
            and Covered California), which may be filed online, in person, by  
            mail, or by telephone.

          States were also allowed to develop and use their own single,  
            streamlined application form if it was consistent with federal  
            standards. California developed its own joint application for  
            state health subsidy programs. The current paper joint application  
            for insurance affordability programs asks applicants:
          
             �    Whether the applicant is male or female;
             �    Whether the applicant has a physical, mental, emotional  




                                                             SB 280 | Page  
          3


          

               or developmental disability; and,
             �    In what language should the state write and speak to the  
               individual who is the main contact on the application. 

            In addition, the joint paper application asks applicants for  
            their race and indicates providing this information is  
            optional. It also asks if an individual is of Hispanic, Latino  
            or Spanish origin and asks about country of origin. The  
            current joint application does not ask for information about  
            sexual orientation or gender identity or expression. Data from  
            Covered California for the months of October and November 2013  
            indicates 77.2 percent of enrollment provided information  
            about their race.

          1.Prior legislation. AB 1208 (Pan) of 2013 contained provisions  
            similar to this bill. AB 1208 was vetoed by the Governor, who  
            stated the state does not need to mandate these requirements  
            in law as DHCS and Covered California already have the  
            authority to modify these types of questions on the form, and  
            they can work constructively with stakeholders to decide what  
            is necessary to change for 2015 and beyond.

          2.Support. This bill is sponsored by Equality California (EC),  
            which states a number of studies have indicated that members  
            of the LGBT population continue to experience worse health  
            outcomes than their non-LGBT counterparts. Due to factors like  
            low rates of health insurance coverage, high rates of stress  
            from systematic harassment and discrimination, and a lack of  
            cultural competency in the health care system, LGBT people are  
            at a higher risk for cancer, mental illnesses, and other  
            diseases, and are more likely to smoke, drink alcohol, use  
            drugs, and engage in other risky behaviors. EC states it can  
            only estimate the full extent of LGBT health disparities due  
            to a lack of consistent data collection on sexual orientation  
            and gender identity. EC argues this bill will significantly  
            help to address this problem by requiring that data on sexual  
            orientation and gender identity that is voluntarily given be  
            collected for the purposes of various health insurance  
            programs in the state. This information will allow researchers  
            and advocates to get a fuller and more accurate accounting of  
            LGBT health outcomes and needs-and ultimately to close the gap  
            between the health and well-being of LGBT people and the  
            non-LGBT population.

          The California Pan-Ethnic Health Network writes in support that  




          SB 280 | Page 4




            health disparities are prevalent, and the state's health care  
            programs must improve the way they collect and analyze data by  
            enrollee demographic, including race, ethnicity, language and  
            sexual orientation.

           SUPPORT AND OPPOSITION  :
          Support:  Equality California (sponsor)
                    California Pan Ethnic Health Network
                    L.A. Gay & Lesbian Center
                    Western Center on Law and Poverty

          Oppose:   None received
                                      -- END --