BILL ANALYSIS Ó SB 4 Page 1 Date of Hearing: September 9, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair SB 4 (Lara) - As Amended September 4, 2015 SENATE VOTE: Not relevant SUBJECT: Health care coverage: immigration status. SUMMARY: Requires children enrolled in restricted scope Medi-Cal be enrolled in full-scope Medi-Cal if otherwise eligible when 2015 Budget bill language making undocumented children under the age of 19 eligible for full-scope Medi-Cal benefits is implemented. Specifically, this bill: 1)Requires, when 2015 Budget bill language is implemented to make undocumented children under the age of 19 eligible for full scope Medi-Cal benefits, that children enrolled in restricted scope Medi-Cal at that time to be enrolled in full scope Medi-Cal if otherwise eligible, pursuant to an eligibility and enrollment plan. 2)Requires the eligibility and enrollment plan to include outreach strategies developed by the Department of Health Care Services (DHCS) in consultation with stakeholders including, but not limited to, counties, health care service plans, consumer advocates, and the Legislature. SB 4 Page 2 3)Requires an individual made eligible for full-scope Medi-Cal under these provisions to enroll in a Medi-Cal managed care (MCMC) plan if the individual would otherwise have been required to enroll in the plan. 4)Specifies that enrollment in a MCMC health plan does not preclude a beneficiary from being enrolled in any other children's Medi-Cal specialty program that he or she would otherwise be eligible for. 5)Requires DHCS to seek any necessary federal approvals to obtain federal financial participation (FFP) in implementing these provisions, and requires benefits for services under these provisions to be provided with state-only funds only if federal financial participation is not available for those services. 6)Requires DHCS to implement these provisions by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions until the time any necessary regulations are adopted. 7)Requires DHCS, commencing six months after the effective date of these provisions, to provide a status report to the Legislature on a semiannual basis, until regulations have been adopted. 8)Allows DHCS, in implementing these provisions, to contract as necessary on a bid, or nonbid basis. SB 4 Page 3 EXISTING STATE LAW: 1)Establishes the Medi-Cal program, administered by DHCS, under which low income individuals are eligible for health care coverage. 2)Makes undocumented individuals, who are otherwise eligible for Medi-Cal services, eligible only for care and services that are necessary for the treatment of an emergency medical condition and medical care directly related to the emergency, as defined in federal law. Makes low-income undocumented individuals Medi-Cal eligible for pregnancy-only coverage, breast and cervical cancer-related treatment services, and long-term care services. These services are referred to as limited-scope Medi-Cal services. 3)Expands, through the 2015-16 Health Budget trailer bill, full-scope Medi-Cal coverage to children, regardless of immigration status, who currently would be eligible for Medi-Cal if not for immigration status, beginning when DHCS declares that systems are ready for implementation, but no sooner than May 1, 2016. Requires children eligible in this category to enroll in MCMC in those counties in which a managed care plan is available. Requires DHCS to seek federal financial participation (FFP), but requires coverage to be provided regardless of FFP. Requires DHCS to provide a semiannual status report to the Legislature until regulations have been adopted. SB 4 Page 4 EXISTING FEDERAL LAW prohibits Medicaid matching funds for medical assistance for an undocumented individual, except for care and services necessary for the treatment of an emergency medical condition (as defined) for an individual who otherwise meets the eligibility requirements for medical assistance under the state's Medicaid State Plan. FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible increased costs associated with a 30-day timeline to transition children to full-scope Medi-Cal. The 2015-16 Budget assumed transition by June 1, 2016. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, without access to affordable, quality health insurance, people are forced to rely on emergency care, which means they delay treatment until they are sicker and treatment is more expensive. The author also notes that the Legislature and the Governor, through the enactment of the Budget Act of 2015 (SB 97 (Committee on Budget and Fiscal Review), Chapter 11, Statutes of 2015) expanded Medi-Cal eligibility for children under the age of 19, regardless of immigration status, to ensure that no child in California who is income-eligible will be denied access to health care coverage. These provisions are slated to go into effect some time on or after May 1, 2016. This bill will make certain that children currently eligible for limited scope Medi-Cal are quickly transitioned to full-scope Medi-Cal. The author concludes, we've made enormous strides to reduce California's uninsured population with the implementation of the Patient Protection and Affordable Care Act (ACA), but only when we include everyone can we have a truly healthy California. 2)BACKGROUND. SB 4 Page 5 a) Current scope of Medi-Cal coverage for immigrants. In order to be Medi-Cal eligible, an individual must be a state resident and generally must be low-income. Recent legal immigrants and undocumented immigrant adults who meet income and residency requirements are Medi-Cal-eligible, but the scope of that coverage depends on the immigration status of the immigrant. Under existing state and federal law, undocumented immigrants are not eligible for full scope services, and are instead eligible for "limited scope" Medi-Cal benefits. Limited-scope services are long-term care, pregnancy-related benefits, and emergency services. Medi-Cal also provides coverage for undocumented individuals needing breast and cervical cancer treatment, family planning services through the Family Planning, Access, Care, and Treatment program, and through temporary presumptive eligibility programs. b) Presidential action on immigration. In November 2014, President Obama announced that the federal Department of Homeland Security (DHS) would not deport certain undocumented parents of U.S. citizens and parents of lawful permanent residents. President Obama also announced an expansion of the Deferred Action for Childhood Arrivals program for undocumented youth who came to the United States as children. Under a directive from the Secretary of DHS, these parents and youth may be granted a type of temporary permission to stay in the U.S. called "deferred action." Deferred action is a form of administrative relief from deportation whereby DHS authorizes a noncitizen to remain in the U.S. temporarily. These individuals may also apply for an employment authorization document (a work permit) during the deferred action period. A grant of deferred action is temporary and does not grant citizenship or permanent lawful status. However, a person granted deferred action is considered by the federal government to be lawfully present for as long as the grant of deferred SB 4 Page 6 action status. These actions are expected to affect up to 4.4 million people, according to DHS. c) The ACA and the remaining uninsured. A January 2015 report from the UC Berkeley Center for Labor Research and Education and the UCLA Center for Health Policy Research estimated the ACA is expected to reduce California's uninsured rate by at least half by 2019, at which time the ACA will be fully implemented, as they estimate 6.5 million Californians would have remained uninsured by 2019 without the ACA. The report indicates that between 2.7 and 3.4 million Californians will remain uninsured by 2019. Overall, between 1.4 and 1.5 million undocumented immigrants in California are projected to remain uninsured in 2019, comprising up to half of all Californians remaining uninsured. 3)SUPPORT. Health Access California supports this bill as it is proposed to be amended because it would assure that kids do not need to reapply to transition from restricted scope Medi-Cal to full scope and kids who would not be in MCMC if they were citizens or lawful residents will not be required to enroll in Managed care. The National Immigration Law Center (NILC) states, individuals and communities suffer when people are uninsured. NILC notes, the uninsured are more likely to be diagnosed with cancer at an advanced state, to die after a heart attack or accident, and to suffer poor outcomes from a stroke. NILC concludes we are all better off when everyone has access to health insurance. The Western Center on Law and Poverty supports this bill, noting as California leads the way in implementing the ACA, providing comprehensive health coverage for undocumented children is just the humane thing to do. 4)OPPOSITION. We the People Rising opposes a previous version of this bill, stating that U.S. Veterans and their children, children in foster care, homeless families, and the unemployed should be the focus of legislation in Sacramento - not SB 4 Page 7 individuals residing unlawfully in California. 5)RELATED LEGISLATION. SB 10 (Lara) was recently amended to make individuals who meet all of the eligibility requirements for full-scope Medi-Cal benefits, except for their immigration status, eligible for full-scope Medi-Cal benefits. SB 10 is currently pending a hearing in the Assembly Judiciary Committee; however SB 10 will most likely be re-referred to Assembly Health Committee. 6)PREVIOUS LEGISLATION. a) SB 1005 (Lara) of 2014 would have established the California Health Exchange Program for All Californians (CHEPFAC) within state government and would have required that CHEPFAC be governed by the executive board that governs Covered California. SB 1005 would have required Covered California, by January 1, 2016, to facilitate the enrollment of individuals who would have been eligible to purchase coverage through Covered California but for their immigration status and extend eligibility for full-scope Medi-Cal benefits to individuals who were otherwise eligible for those benefits but for their immigration status. SB 1005 was held on the Senate Appropriations suspense file. b) SB 900 (Alquist), Chapter 659, Statutes of 2010, establishes Covered California as an independent public entity within state government, and requires Covered California to be governed by a board composed of the Secretary of California Health and Human Services Agency, or his or her designee, and four other members appointed by the Governor and the Legislature who meet specified SB 4 Page 8 criteria. c) AB 1602 (John A. Pérez), Chapter 655, Statutes of 2010, specifies the powers and duties of Covered California relative to determining eligibility for enrollment in the Covered California and arranging for coverage under qualified health plans. d) AB X1 1 (John A. Pérez), Chapter 3, Statutes of 2013-14 First Extraordinary Session, implemented specified Medicaid provisions of the ACA, including the expansion of federal Medicaid coverage to low-income adults with incomes between 0% and 138% of the federal poverty level. AB X1 1 also implemented a number of the Medicaid ACA provisions to simplify the eligibility, enrollment and renewal processes for Medi-Cal. e) SB X1 1 (Ed Hernandez and Steinberg), Chapter 4, Statutes of 2013-14 First Extraordinary Session, established the existing Medi-Cal benefit package as the benefit package for the expansion population eligible under the ACA and expanded the Medi-Cal benefit package for the existing population and newly eligible under the ACA to include mental health services and substance use disorder services required under the essential health benefit legislation adopted in 2012 that were not currently covered by Medi-Cal. SB X1 1 also implemented a number of the Medicaid ACA-related provisions to simplify the eligibility, enrollment and renewal processes for Medi-Cal and also made recent immigrant childless adults, who would be eligible for Medicaid funding under the ACA except for the five-year SB 4 Page 9 bar who are enrolled in Covered California with an Advanced Premium. Tax Credit, eligible for Medi-Cal benefits not covered by their Covered California plan. For these individuals, DHCS would be required to pay the individual's premium and cost-sharing (referred to as a "Medi-Cal wrap"). The Medi-Cal wrap has not yet been implemented. Until it is, these recent legal immigrant adults are Medi-Cal eligible. 7)TECHNICAL AMENDMENTS. The author is proposing technical and clarifying amendments which will: a) Clarify that kids currently enrolled in restricted scope emergency Medi-Cal will not be required to submit a new application when they transition to full-scope coverage. b) Ensure that kids currently enrolled in restricted scope emergency Medi-Cal will be transferred to full scope services immediately, as soon the program is operational (May 1, 2016). c) Require DHCS to provide monthly updates to the appropriate policy and fiscal committees of the Legislature on the status of the implementation of these provisions. REGISTERED SUPPORT / OPPOSITION: Support (previous version) SB 4 Page 10 Advancement Project AIDS Project Los Angeles Alliance for Boys and Men of Color Alliance of Catholic Healthcare American Civil Liberties Union of California American Federation of State, County and Municipal Employees Anti-Defamation League Asian Americans Advancing Justice Sacramento Asian Law Alliance ASPIRE Los Angeles California Alliance of Retired Americans California Asian Pacific Islander Budget Partnership SB 4 Page 11 California Association of Public Hospitals and Health Systems California Black Health Network California Chapter of the American College of Emergency Physicians California Communities United Institute California Coverage and Health Initiatives California Faculty Association California Family Health Council California Family Resource Association California Healthy Nail Collaborative California Immigrant Policy Center California Labor Federation California Latinas for Reproductive Justice SB 4 Page 12 California Nurses Association California Pan-Ethnic Health Network California Partnership California Primary Care Association California Program of All-Inclusive Care for the Elderly California Rural Legal Assistance Foundation California School Employees Association California School-Based Health Alliance California State Council of the Service Employees International Union California Teachers Association Campaign for a Healthy California Central California Alliance for Health Center for Empowering Refugees and Immigrants SB 4 Page 13 Children Now Children's Defense Fund California Children's Partnership Coalition for Humane Immigrant Rights of Los Angeles Community Action Fund of Planned Parenthood of Orange and San Bernardino Counties Community Clinic Association of Los Angeles County Community Health Partnership Consumers Union Equality California Friends Committee on Legislation of California Health Access Health Care for All - Contra Costa County SB 4 Page 14 HOPE (Hispanas Organized for Political Equality) Instituto Familiar de la Raza, Inc. Korean Resource Center Lutheran Office of Public Policy, California March of Dimes California Mexican American Legal Defense and Educational Fund National Association of Social Workers, California Chapter National Health Law Program National Immigrant Law Center Pacific Asian Counseling Service PICO California Planned Parenthood Action Fund of Santa SB 4 Page 15 Barbara, Ventura and San Luis Obispo Counties Planned Parenthood Action Fund of the Pacific Southwest Planned Parenthood Advocacy Project Los Angeles County Planned Parenthood Affiliates of California Planned Parenthood Pasadena and San Gabriel Valley Planned Parenthood Northern California Action Fund Planned Parenthood Mar Monte San Francisco Community Clinic Consortium SB 4 Page 16 Santa Cruz Women's Health Center St. Anthony Foundation St. John's Well Child & Family Center San Francisco Bay Area Physicians for Social Responsibility United Domestic Workers/AFSCME Local 3930 United Ways of California Western Center on Law and Poverty Young Invincibles Opposition (previous version) We The People Rising SB 4 Page 17 Analysis Prepared by:Lara Flynn / HEALTH / (916) 319-2097