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Fate of Special Session Bills in Limbo

The California Legislature went on spring recess yesterday with the work of the special legislative session on health care still undone.

Proponents of the special session bills hoped to get them through a floor vote by now. One of the reasons the governor called the special session was to get bills passed in time to help set the stage for full implementation of the Affordable Care Act.

There are six bills, total, as three mirror-image proposals make their way through both houses.

Concerns Aired Over Health Bridge Bill

The Senate Committee on Health yesterday passed SBX1-3 by Sen. Ed Hernandez (D-West Covina) on an 8-0 vote.

“This bill would establish a bridge plan for the health benefit exchange, which we now know as Covered California,” Hernandez said. “It will allow people to move from coverage to coverage within the exchange.”

When beneficiaries have a change in family size or income, their eligibility to qualify for certain subsidies within the exchange can change, Hernandez said. The bridge plan tries to make it easier for those people and their families to maintain the same health plan and provider network, even when circumstances change, and that would cut down on churning (administrative upheaval caused when people move from plan to plan), he said.

Settlement Called ‘Less Harmful’ for In-Home Support Recipients

California officials and disability rights advocates yesterday announced a settlement of a lawsuit challenging a 20% budget trigger cut in In-Home Supportive Services care.

The settlement allows an 8% reduction this year and a 7% reduction in 2014. It also changes the cuts from permanent to temporary.

The size and timing of the cuts are based, in part, on a current 3.6% IHSS cut established in 2009. That reduction will remain in effect, and an additional 4.4% cut will be added onto that this year followed by a 3.4% additional cut next year, bringing the totals to 8% this year and 7% next year.

Federal Approval of Duals Plan May Come Soon

At a budget subcommittee hearing yesterday, Department of Health Care Services Director Toby Douglas said he hopes to get federal approval for the Coordinated Care Initiative within weeks.

The CCI, also known as the duals demonstration project, is a plan to move half a million Californians with dual eligibility in both Medicare and Medicaid into Medi-Cal managed care programs. The plan calls for consolidating  disparate health care services and funding streams  to improve and integrate  care for seniors and persons with disabilities, while saving the state money  as well.

“We hope it’s imminent,” Douglas said at yesterday’s Budget Subcommittee on Health and Human Services, when he was asked for an approval timeline by Assembly member Mariko Yamada (D-Davis).

Concern over Mental Health Provider Shortage

Legislation introduced last week would expand the scope of practice for nurse practitioners, optometrists and pharmacists. Separate legislation looks to expand scope of practice for physician assistants, as well.

The bills hope to address the dearth of primary care providers in California by allowing some mid-level health care providers to do more. With the Affordable Care Act’s expansion of Medi-Cal and introduction of the state exchange starting in 2014, there is expected to be a much greater need for primary care services.

Some mental health providers are citing a similar access concern for mental health professionals. Since the state’s essential health benefits include mental health coverage, the demand for mental health services is going to take a big leap, according to psychologist John Caccavale, executive director of the National Alliance of Professional Psychology Providers.

State Advocates Happy Over Federal WIC Action

Action by a U.S. Senate committee has family advocates in California breathing a sigh of relief.

The Women, Infants and Children program — which supplies food, breastfeeding services and other benefits to low-income mothers — was included in the federal sequestration cuts, but this week the Senate appropriations committee included funding for it in an amendment to the Consolidated and Further Continuing Appropriations Act of 2013, and that means good things for the WIC program in California, according to Laurie True, executive director at the California WIC Association.

True spoke yesterday at a state budget subcommittee hearing.

“We’re really happy,” True said. “It passed Senate appropriations, and it’s already been conferenced [with approval from both federal houses], so it looks good right now for us.”

Financial Concerns for Ambulance Services

Health care providers in California are waiting for judicial rulings to see if they will be hit by a 10% cut in Medi-Cal reimbursement rates as a result of a law passed in 2011 and currently tied up in federal appeals court.

Ambulance service providers are among those who would be hit by the cut but they say they shouldn’t be included for one large and simple reason: Unlike physicians, ambulance providers are required by law to transport Medi-Cal beneficiaries. They’re not allowed to refuse them.

“We cant say ‘no’ like everyone else. We’re required by law to provide those services,” said Klark Staffan, vice president and chief operating officer for Sierra Medical Services Alliance  in Lassen County. “And so we’re stuck. We have to provide the service, but we lose money with every Medi-Cal transport. We’re the only type of medical provider who can’t say we wouldn’t accept [Medi-Cal] patients. We think we’re unfairly treated.”

Administrative Law Office OKs Autism Measures

The California Office of Administrative Law on Monday approved emergency regulations governing health insurers’ treatment of autism coverage.

The regulations were issued by the Department of Insurance to implement details of the California Mental Health Parity Act as well as to implement SB 946 by Sen. Darrell Steinberg (D-Sacramento), an autism treatment law passed in 2011.

“These emergency regulations will ensure that insurance companies cover medically necessary treatment,” Insurance Commissioner Dave Jones said in a written statement. “Autistic children and their families should now, without delay, receive the transformative treatment that will enable them to succeed in school, their families and communities.”

CBAS Hearings Nearing an End

Of the roughly 2,600 appeal hearings filed over eligibility for the Community Based Adult Services program, only 47 are still to be heard, according to Michael Weston, deputy director of public affairs for the Department of Social Services.

Administrative law judges from the Department of Social Services heard the appeal hearings and then forwarded their opinions to Toby Douglas, director of the Department of Health Care Services, the agency that issued the denials of eligibility. Douglas reviewed each case and made the final ruling on CBAS eligibility.

According to Douglas, about 49% of the appellants were granted eligibility as a result of the appeal.

Geographic Rating Regions Amended

The Assembly and Senate last week introduced amendments to SBX1-2 by Sen. Ed Hernández (D-West Covina) and ABX1-2 by Assembly member Richard Pan (D-Sacramento), which change the geographic rating regions for the individual and small health insurance markets in California.

The amendments establish the 19-region plan, the same regions adopted by the Legislature last year for larger-market insurers.

The state’s health benefit exchange, Covered California, favored the 19-region plan in part because it mirrors last year’s large-market legislation and could avoid consumer and industry confusion.