BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          AB1863  (Gallegos)
          
          Hearing Date:8/23/00            Amended:5/30/00 & LCR#15679
          Consultant: George Cate         Policy Vote:H&HS 6-0   
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          AB 1863 increases the maintenance need levels for aged,  
          blind and disabled 
          persons qualifying for Medi-Cal benefits as medically needy  
          recipients.  This bill would also increase maintenance need  
          levels by the consumer price index, or 10 percent, for  
          three consecutive years beginning January 1, 2001.  In  
          addition, this measure conditions all the increases on the  
          availability of federal financial participation and the  
          approval of any federal waivers that may be necessary.

                              Fiscal Impact (in thousands)
           
          Major Provisions        2000-01             2001-02               2002-03   
           Fund  
          
          Maintenance levels    Indeterminate               General &
                                                              Federal*
             * Medi-Cal is 50% General Fund and 50% federal funds

          
          STAFF COMMENTS:  SUSPENSE FILE
          
          The effect of increasing the maintenance need income levels  
          is to increase the amount of money that the medically needy  
          aged, blind and disabled can keep for their own purposes,  
          instead of paying it to the Medi-Cal program as their share  
          of health care costs.

          The Department of Health Services (DHS) has estimated that  
          the costs of this bill are indeterminate, but potentially  
          tens of millions of dollars to the General Fund.  However,  
          some of the increases contained in AB 1863 have already  
          been adopted as part of the budget package, and that should  
          reduce these costs.

           Proposed amendments reduce the rate of increase for  










          maintenance need levels to changes in the CPI.