BILL ANALYSIS                                                                                                                                                                                                    Ó






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

          BILL NO:       SB 1002
          AUTHOR:        De León
          INTRODUCED:    February 13, 2014
          HEARING DATE:  March 26, 2014
          CONSULTANT:    Bain

           SUBJECT  :  Medi-Cal: redetermination.
           
          SUMMARY  :  Requires a county to begin a new 12-month Medi-Cal  
          eligibility period on a date that aligns that Medi-Cal  
          eligibility period with the beneficiary's household CalFresh  
          certification period, when a county determines or recertifies  
          CalFresh eligibility. Implements these provisions to the extent  
          permitted by federal law and to the extent that they do not  
          violate federal Medicaid maintenance of effort rules.

          Existing law:
          1.Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income individuals receive health care services.

          2.Establishes the federal Supplemental Nutrition Assistance  
            Program (SNAP), under which each county distributes nutrition  
            assistance benefits provided by the federal government to  
            eligible households. In California, federal nutrition  
            assistance benefits are administered through CalFresh.

          3.Requires counties to perform Medi-Cal eligibility  
            redeterminations every 12 months, and to promptly redetermine  
            Medi-Cal eligibility whenever the county receives information  
            about changes in a beneficiary's circumstances (such as the  
            birth of a child, change in family size, or change in income)  
            that may affect eligibility for benefits.

          4.Requires a county to begin a new 12-month Medi-Cal eligibility  
            period in a redetermination due to a change in circumstances,  
            if a county determines that the beneficiary remains eligible  
            for Medi-Cal benefits.
          
          This bill:
          1.Requires a county, when a Medi-Cal redetermination due to a  
            change of circumstance is required, to begin a new 12-month  
            Medi-Cal eligibility period on a date that aligns that  
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            eligibility period with the beneficiary's household CalFresh  
            certification period if the county receives information about  
            the change in circumstances in a CalFresh application or  
            during a CalFresh recertification, and the Medi-Cal  
            beneficiary is determined eligible to receive CalFresh  
            benefits. 

          2.Requires a county, when a Medi-Cal redetermination is not  
            required, to begin a new 12-month Medi-Cal eligibility period  
            that aligns the beneficiary's Medi-Cal eligibility period with  
            his or her CalFresh household certification period, if a  
            county receives an application or recertification for CalFresh  
            benefits from a Medi-Cal beneficiary who is not receiving  
            CalWORKs benefits, and who is determined eligible to receive  
            CalFresh benefits.
           
          3.Prohibits 2) from applying if doing so would either increase  
            the Medi-Cal beneficiary's share of cost or reduce the  
            benefits for any member of the beneficiary's CalFresh family  
            budget unit. Requires the Medi-Cal beneficiary's eligibility  
            period and CalFresh certification period to remain unaligned  
            in such a situation.

          4.Prohibits 2) from being construed to permit a CalFresh  
            recipient who is otherwise ineligible for Medi-Cal benefits to  
            receive Medi-Cal benefits.

          5.Implements the provisions of this bill and a specified  
            provision of existing law to the extent permitted by federal  
            law and to the extent that this action does not violate  
            federal maintenance of effort rules.

          6.Names this bill "The Aligning Opportunities for Health Act of  
            2014."

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

           COMMENTS  :  
           1.Author's statement. According to the author, in an effort to  
            further the connection between nutrition and health and ensure  
            that Californians receive the federal benefits to which they are  
            entitled, the link between CalFresh and Medi-Cal should be  
            strengthened. With the implementation of the federal Affordable  
            Care Act, there will be an estimated 10 million Californians on  
            Medi-Cal this year. Many households covered through Medi-Cal also  




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            receive CalFresh. Based on this significant overlap in  
            eligibility, California has taken great strides to improve dual  
            enrollment and strengthen alignment between CalFresh and Medi-Cal.  
            SB 1002 builds on these efforts by improving program efficiency  
            for both administrators and the low-income families they serve. SB  
            1002 clarifies that a county may, under certain circumstances,  
            align a household's Medi-Cal redetermination date with the  
            household's CalFresh certification date. Consequently, SB 1002  
            would reduce the number of households that lose eligibility due to  
            an inadvertent paperwork error, and not an actual change in  
            eligibility for benefits. The need to reapply for benefits in such  
            a situation is redundant and inefficient for both low-income  
            families and administering agencies. 

          2.Background.  Counties perform Medi-Cal, CalWORKS and CalFresh  
            eligibility determinations for the state. Individuals can apply  
            for all three programs at one time using a joint application, but  
            individuals may apply for each program at different times using  
            separate applications. While an individual who is enrolled in  
            CalWORKS is automatically categorically eligible for Medi-Cal,  
            when individuals apply for CalFresh and Medi-Cal at different  
            times, they can have different deadlines to renew eligibility for  
            each program. According to state data from the last quarter of  
            2012, 66 percent of Medi-Cal households received CalFresh and 77  
            percent of CalFresh households received Medi-Cal.

          3.Double referral. This bill is double referred. Should it pass  
            out of this committee, it will be referred to the Senate  
            Committee on Human Services.
          
          4.Prior legislation. SB 970 (De León) of 2012 would have allowed an  
            individual, at initial application or renewal of health care  
            coverage using the single state application, to have his or her  
            health care application information used to initiate a  
            simultaneous application for CalWORKs or CalFresh programs to be  
            transmitted to the applicable county human services department to  
            initiate the application, if the individual granted consent. SB  
            970 was vetoed by Governor Brown.

          SB X1 1 (Hernandez and Steinberg), Chapter 4, Statutes of 2013,  
            among other provisions, requires DHCS to seek any federal waivers  
            necessary to use the eligibility information of individuals who  
            have been determined eligible for the CalFresh who are under 65  
            years of age and are not disabled, to determine their Medi-Cal  
            eligibility.




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          5.Support. This bill is jointly sponsored by California Food  
            Policy Advocates (CFPA) and the Western Center on Law &  
            Poverty (WCLP) to improve alignment between Medi-Cal and  
            CalFresh reporting periods. In order to maintain benefits,  
            individuals and families must meet ongoing reporting  
            requirements for both programs, including the submission of  
            paperwork with necessary information for the annual renewal of  
            benefits. If a household's reporting periods are aligned, a  
            beneficiary will have a common due date for renewal paperwork,  
            thus reducing the administrative burden for program  
            administrators and facilitating joint reporting and renewal  
            for beneficiaries. Additionally, individuals and families are  
            less likely to confuse reporting requirements if the paperwork  
            for both programs is due concurrently. Doing so would  
            encourage benefit retention and promote Medi-Cal and CalFresh  
            dual enrollment. 
          
          6.Amendments. To clarify the language and intent of this bill,  
            staff and sponsors have negotiated the following language:
          
            (n) (1)  In the case of a redetermination due to a change in  
            circumstances, if a county determines that the beneficiary  
            remains eligible for Medi-Cal benefits, the county shall begin  
            a new 12-month eligibility period. If the county received  or  
            gathered   the  information about the change in circumstances  in   
             during  a CalFresh application or  gathered the information  
            about the change in circumstances during a CalFresh   
            recertification, and the beneficiary is determined eligible to  
            receive CalFresh benefits, then the county shall begin the new  
            12-month  Medi-Cal  eligibility period on a date that aligns the  
            beneficiary's eligibility period with his or her household  's   
            CalFresh certification period. 
            (2)  (A) If a county receives an application for CalFresh  
            benefits from a Medi-Cal beneficiary who is not receiving  
            CalWORKs benefits, or redetermines or recertifies eligibility  
            for CalFresh benefits for a Medi-Cal beneficiary who is not  
            receiving CalWORKs benefits, and no information contained in  
            the CalFresh application, or no information gathered during  
            the CalFresh redetermination or recertification process,  
            requires the county to redetermine the beneficiary's  
            eligibility for Medi-Cal pursuant to this section, and the  
            beneficiary is determined eligible to receive CalFresh  
            benefits, the county shall begin a new 12-month Medi-Cal  
            eligibility period that aligns the beneficiary's eligibility  
            period with his or her CalFresh household certification  




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            period, unless doing so would increase the beneficiary's share  
            of cost or reduce Medi-Cal benefits for any member of the  
            beneficiary's CalFresh family budget unit, in which case the  
            beneficiary's Medi-Cal eligibility period and CalFresh  
            certification period shall remain unaligned. 
              (A)Except as provided in paragraph (B), if a county  
            recertifies eligibility or approves an application for  
            CalFresh benefits from a Medi-Cal beneficiary who is not  
            receiving CalWORKs benefits and is not subject to a  
            redetermination pursuant to paragraph (1) of this subdivision,  
            the county shall begin a new 12-month Medi-Cal eligibility  
            period that aligns the beneficiary's eligibility period with  
            his or her CalFresh household certification period. 
            (B) The county shall not take the action in paragraph (A) if  
            doing so would increase the beneficiary's share of cost or  
            reduce Medi-Cal benefits for any member of the beneficiary's  
            CalFresh family budget unit, in which case the beneficiary's  
            Medi-Cal eligibility period and CalFresh certification period  
            shall remain unaligned.
              (B)   (C)  This paragraph shall not be construed to permit a  
            CalFresh recipient who is otherwise ineligible for Medi-Cal  
            benefits to receive Medi-Cal benefits.
             (3)  This   The changes made by this  subdivision shall be  
            implemented to the extent permitted by federal law and to the  
            extent that this action does not violate federal  Medicaid  
             maintenance of effort rules.


           SUPPORT AND OPPOSITION  :
          Support:  California Food Policy Advocates (co-sponsor)
                               Western Center on Law and Poverty  
          (co-sponsor)
                    Alameda County Community Food Bank 
                    Asian Law Alliance
                    California Association of Food Banks
                    California Coverage and Health Initiatives
                    California Center for Public Health Advocacy 
                    California Hunger Advocacy Coalition 
                    Children Now
                    Children's Defense Fund-California
                    Coalition of California Welfare Rights Organization
                    Community Food and Justice Coalition
                    Congress of California Seniors 
                    Greenlining Institute 
                    Los Angeles Regional Food Bank




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                    National Health Law Program 
                    PICO California
                    Redwood Empire Food Bank
                    San Francisco Living Wage Coalition
                    SF-Marin Food Bank
                    St. Anthony Foundation
                    The Children's Partnership
                    United Way Monterey County
                    United Way of the Bay Area
                    United Ways of California
                    1 individual

          Oppose:   None received



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