HomeMy WebLinkAboutMINUTES - 09211999 - U1 r To: BOARD OF SUPERVISORS
UPERS ISORS Contra
J ti^
SUPERVISOR DONNA GERBER ,
Costa
FROM: _.
SUPERVISOR MARK DeSAULNIER `s
����• "_� ��°� County
DATE:
September 20, 1999
SUBJECT:
LEGISLATION - AB 469 (PAPAN)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT a position in opposition to AB 469 by Assemblyman Lou Papan and
AUTHORIZE the Chair, Board of Supervisors,to sign a letter to the Governor asking
him to veto the bill.
BACKGROUND:
Currently the State Department of Health Services determines which Medi-Cal
beneficiaries will be mandatorily enrolled in a health plan and which have the option
of remaining in the fee-for-service program.
AB 469 (which is sponsored by the Western Center on Law and Poverty) would
provide that enrollment in a Medi-Cal managed care plan shall be voluntary for
beneficiaries who are eligible for benefits under the Federal SSI (Supplemental
Security Income) Program. It also provides that enrollment of certain infants and
children in a managed care plan would be voluntary. It also provides that children
eligible for the California Children's Service (CCS) Program who are enrolled in a
Medi-Cal managed care program could disenroll under specified circumstances.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDA OF COUNTY INISTRATOR --.-RECOMMENDATION OF BOARD COMMITTEE
APPROVE O HER
SIGNATUREM: DONNA RBER MARK DeSAULNIER
ACTION OF BOARD oC�pptember 21, 1999 APPROVED AS RECOMMENDED OTHER
IT IS BY THE BOARD ORDERED, by unanimous vote, that this matter is added to the agenda as an
urgency item; a position in opposition to AB 469 is ADOPTED; and the Chair, Board of Supervisors, is
AUTHORIZED to sign a letter to the Governor asking him to veto AB 469.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT"THIS IS A TRUE
UNANIMOUS(ABSENT n ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS THE DATE SHOWN.
County Administrator ATTESTED
Contact: Health Services Director PHIL 14ATCHELOR,CLERK OF THE BOARD OF
cc: Executive Director, CCHP SUPERVISORS AND COUNTY ADMINISTRATOR
Les Spahnn; Heim, Noack, Kelly&Spahnn
51,
994r�� ,DEPUTY
BYY
The fee-for-service is typically more expensive than the care provided by a managed
care plan. Enactment of AB 469 would also permit some enrollees in the Contra
Costa Health Plan to disenroll and would impact the level of future enrollment. The
CCHP Joint Conference Committee, of which we are both members, discussed this
bill on September 17, 1999, and voted to authorize Supervisor Gerber, as its Chair,
to write to the Governor asking for a veto of AB 469. We are bringing this matter to
the attention of the Board of Supervisors as an urgency matter, asking that the
Board authorize its Chair to likewise write to the Governor asking for a veto.
-2-
Assembly Bill No.469
Passed the Assembly September 9, 1999
Chief Clerk of the Assembly
Passed the Senate September 8, 1999
Secretary of the Senate
This bill was received by the Governor this day
Of 1999, at O'clock----m.
Private Secretary of the Governor
AB 469 2—
CHAPTER
An act to amend Section 14089 of, and to add Sections
14087.11 and 14094.4 to, the Welfare and Institutions
Code, relating to health.
LEGISLATIVE COUNSEL'S DIGEST
AB 469, Papan. Medi-Cal: managed care plans.
Existing law provides for the Medi-Cal program, which
is administered by the State Department of Health
Services, pursuant to which medical benefits are
provided to public assistance recipients and certain other
low-income persons.
This bill would provide that enrollment in a Medi-Cal
managed care plan shall be voluntary for beneficiaries
who are eligible for benefits under the federal
Supplemental Security Income for the Aged, Blind and
Disabled Program and eligible low-income infants and
children, in areas specified by the Director of Health
Services for expansion of the Medi-Cal managed care
program and where the department is contracting with
various entities for those benefits.
The bill would, with the exception of contracts entered
into for county organized health systems, authorize any
child who is eligible for California Children Services
Program benefits who is enrolled in a Medi-Cal managed
care plan to be disenrolled in specified conditions, and
would specify that their enrollment in managed care
plans is voluntary.
The people of the State of California do enact as follows:
SECTION 1. Section 14087.11 is added to the Welfare
and Institutions Code, to read:
14087.11. (a) Enrollment in a Medi-Cal managed
health care plan under this article shall be voluntary for
all of the following:
(1) Beneficiaries who are eligible for the federal
Supplemental Security Income for the Aged, Blind, and
95
-3 AB 469
Disabled Program (Subchapter 16 (commencing with
Section 1381) of Chapter 7 of Title 42 of the United States
Code).
(2) Low-income infants and children described in
subsection (1) of Section 1396a of Title 42 of the United
States Code.
(b) Subdivision (a) shall apply only in areas specified
by the director for expansion of the Medi-Cal managed
care program, as provided for pursuant to Section 14087.3,
and where the department is contracting with prepaid
health plans or with prepaid health plans that are
contracting with, or governed, owned, or operated by,
either a county board of supervisors, a county special
commission, or a county health authority authorized by
Section 14018.7, 14087.31, 14087.35, 14087.36, 14087.38,
14087.96, or 14089.05.
SEC. 2. Section 14089 of the Welfare and Institutions
Code is amended to read:
14089. (a) The purpose of this article is to provide a
comprehensive program of managed health care plan
services to Medi-Cal recipients residing in clearly defined
geographical areas. It is, further, the purpose of this
article to create maximum accessibility to health care
services by permitting Medi-Cal recipients the option of
choosing from among two or more managed health care
plans or fee-for-service managed case arrangements,
including, but not limited to, health maintenance
organizations, prepaid health plans, primary care case
management plans. Independent practice associations,
health insurance carriers, private foundations, and
university medical centers systems, not-for-profit clinics,
and other primary care providers, may be offered as
choices to Medi-Cal recipients under this article if they
are organized and operated as managed care plans, for
the provision of preventive managed health care plan
services.
(b) The negotiator may seek proposals and then shall
contract based on relative costs, extent of coverage
offered, quality of health services to be provided,
financial stability of the health care plan or carrier,
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AB 469 4—
recipient access to services, cost-containment strategies,
peer and community participation in quality control,
emphasis on preventive and managed health care
services and the ability of the health plan to meet all
requirements for both of the following:
(1) Certification, where legally required, by the
Commissioner of Corporations and the Insurance
Commissioner.
(2) Compliance with all of the following:
(A) The health plan shall satisfy all applicable state and
federal legal requirements for participation as a Medi-Cal
managed care contractor.
(B) The health plan shall meet any standards
established by the department for the implementation of
this article.
(C) The health plan receives the approval of the
department to participate in the pilot project under this
article.
(c) (1) (A) The proposals shall be for the provision of
preventive and managed health care services to specified
eligible populations on a capitated, prepaid or
postpayment basis.
(B) Enrollment in a Medi-Cal managed health care
plan under this article shall be voluntary for all of the
following:
(i) Beneficiaries who are eligible for the federal
Supplemental Security Income for the Aged, Blind, and
Disabled Program (Subchapter 16 (commencing with
Section 1381) of Chapter 7 of Title 42 of the United States
Code).
(ii) Low-income infants and children described in
subsection (1) of Section 1396a of Title 42 of the United
States Code.
(2) The cost of each program established under this
section shall not exceed the total amount which the
department estimates it would pay for all services and
requirements within the same geographic area under the
fee-for-service Medi-Cal program.
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-5 AB 469
(d) The department shall enter into contracts
pursuant to this article, and shall be bound by the rates,
terms, and conditions negotiated by the negotiator.
(e) (1) An eligible beneficiary shall be entitled to
enroll in any health care plan contracted for pursuant to
this article that is in effect for the geographic area in
which he or she resides. Enrollment shall be for a
minimum of six months. Contracts entered into pursuant
to this article shall be for at least one but no more than
three years. The director shall make available to
recipients information summarizing the benefits and
limitations of each health care plan available pursuant to
this section in the geographic area in which the recipient
resides.
(2) No later than 30 days following the date a Medi-Cal
or AFDC recipient is informed of the health care options
described in paragraph (1) of subdivision (e), the
recipient shall indicate his or her choice in writing of one
of the available health care plans and his or her choice of
primary care provider or clinic contracting with the
selected health care plan.
(3) The health care options information described in
paragraph (1) of subdivision (e) shall include the
following elements:
(A) Each beneficiary or eligible applicant shall be
provided with the name, address, telephone number, and
specialty, if any, of each primary care provider, and each
clinic participating in each health care plan. This
information shall be presented under geographic area
designations in alphabetical order by the name of the
primary care provider and clinic. The name, address, and
telephone number of each specialist participating in each
health care plan shall be made available by contacting the
health care options contractor or the health care plan.
(B) Each beneficiary or eligible applicant shall be
informed that he or she may choose to continue an
established patient-provider relationship in a managed
care option, if his or her treating provider is a primary
care provider or clinic contracting with any of the health
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AB 469 —6—
plans available and has the available capacity and agrees
to continue to treat that beneficiary or eligible applicant.
(C) Each beneficiary or eligible applicant shall be
informed that if he or she fails to make a choice, he or she
shall be assigned to, and enrolled in, a health care plan.
(4) At the time the beneficiary or eligible applicant
selects a health care plan, the department shall, when
applicable, encourage the beneficiary or eligible
applicant to also indicate, in writing, his or her choice of
primary care provider or clinic contracting with the
selected health care plan.
(5) Commencing with the implementation of a
geographic managed care project in a designated county,
a Medi-Cal or AFDC beneficiary who does not make a
choice of health care plans in accordance with paragraph
(2), shall be assigned to and enrolled in an appropriate
health care plan providing service within the area in
which the beneficiary resides.
(6) If a beneficiary or eligible applicant does not
choose a primary care provider or clinic, or does not select
any primary care provider who is available, the health
care plan selected by or assigned to the beneficiary shall
ensure that the beneficiary selects a primary care
provider or clinic within 30 days after enrollment or is
assigned to a primary care provider within 40 days after
enrollment.
(7) Any Medi-Cal or AFDC beneficiary dissatisfied
with the primary care provider or health care plan shall
be allowed to select or be assigned to another primary
care provider within the same health care plan. In
addition, the beneficiary shall be allowed to select or be
assigned to another health care plan contracted for
pursuant to this article that is in effect for the geographic
area in which he or she resides in accordance with Section
1903(m)(2)(F)(ii) of the Social Security Act.
(8) The department or its contractor shall notify a
health care plan when it has been selected by or assigned
to a beneficiary. The health care plan that has been
selected or assigned by a beneficiary shall notify the
primary care provider that has been selected or assigned.
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-7 AB 469
The health care plan shall also notify the beneficiary of
the health care plan and primary care provider selected
or assigned.
(9) This section shall be implemented in a manner
consistent with any federal waiver that is required to be
obtained by the department to implement this section.
(f) A participating county may include within the plan
or plans providing coverage pursuant to this section,
employees of county government, and others who reside
in the geographic area and who depend upon county
funds for all or part of their health care costs.
(g) The negotiator and the department shall establish
pilot projects to test the cost-effectiveness of delivering
benefits as defined in subdivisions (a) to (f), inclusive.
(h) The California Medical Assistance Commission
shall evaluate the cost effectiveness of these pilot projects
after one year of implementation. Pursuant to this
evaluation the commission may either terminate or
retain the existing pilot projects.
(i) Funds may be provided to prospective contractors
to assist in the design, development, and installation of
appropriate programs. The award of these funds shall be
based on criteria established by the department.
0) In implementing this article, the department may
enter into contracts for the provision of essential
administrative and other services. Contracts entered into
under this subdivision may be on a noncompetitive bid
basis and shall be exempt from Chapter 2 (commencing
with Section 10290) of Part 2 of Division 2 of the Public
Contract Code.
SEC. 3. Section 14094.4 is added to the Welfare and
Institutions Code, to read:
14094.4. (a) Except for the contracts entered into for
county organized health systems, including the Santa
Barbara Regional Health Authority, any child who is
eligible for benefits under the California Children's
Services Program provided for pursuant to Article 5
(commencing with Section 123800) of Chapter 3 of Part
2 of Division 106 of the Health and Safety Code who is
enrolled in a Medi-Cal managed care plan shall be
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AB 469 8—
disenrolled upon request of a parent or guardian of that
child if all of the following conditions are met:
(1) A specialist approved under the California
Children's Services Program who is providing care to the
child has indicated in writing that the child should be
disenrolled.
(2) A primary care physician or the specialist
approved under the California Children's Services
Program who is providing care to the child has indicated
in writing a willingness to accept the child for primary
and preventive care under the fee-for-service Medi-Cal
program. The local children's medical services office,
which includes any office under the California Children's
Services Program or the Child Health and Disability
Prevention Program, may assist the child's family with
locating an appropriate primary care physician if the
child does not have a primary care physician.
(b) The disenrollment of a child from a managed care
plan shall take effect as follows:
(1) Within two working days after the request under
this section if the specialist or primary care physician
indicates the existence of a medical emergency.
(2) In any case to which paragraph (1) does not apply,
the disenrollment shall take effect not later than the next
Medi-Cal eligibility redetermination.
95
Approved ' 1999
Governor