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LEGISLATION COMMITTEE

Meeting Date:	08/07/2014
Subject: AB 1263 (Perez): Medi-Cal: CommuniCal
Submitted For:	LEGISLATION COMMITTEE
Department:	County Administrator
Referral No.:	2014-28
Referral Name:	AB 1263 (Perez): Medi-Cal: CommuniCal
Presenter:	L. DeLaney	Contact:	L. DeLaney, 925-335-1097

Information

Referral History:

Staff of Supervisor Mitchoff referred AB 1263 to the Legislation Committee for discussion and possible action. Interpreting for California is soliciting support of the bill from jurisdictions across the state. Santa Clara, Alameda and San Francisco County resolutions of support are on file with the organization, and they were anticipating the City of San Diego's support as well.

Referral Update:

Bill Summary: AB 1263 (Perez) Relates to the Medi-cal Patient Centered Communication Program (CommuniCal) and fund to provide and reimburse medical interpretation services to Medi-cal beneficiaries who are limited English proficient. Requires the Department of Human Resources to notify the individual of the acceptance or denial of his or her inclusion on the registry within specified days of the submission of the application. Updates provisions regarding program certified medical interpreters. Allows labor organizing proceedings. The bill analysis for the Assembly Floor vote is attached.

AB 1263 was vetoed by Governor Brown on Oct. 13, 2013. His veto message was the following:

To the Members of the California State Assembly:

I am returning Assembly Bill 1263 without my signature.

The bill would require the Department of Health Care Services to establish the CommuniCal program to certify and restructure current interpreter services provided under Medi-Cal.

California has embarked on an unprecedented expansion to add more than a million people to our Medi-Cal program. Given the challenges and the many unknowns the state faces in this endeavor, I don't believe it would be wise to introduce yet another complex element.

Sincerely,

Edmund G. Brown Jr.

Recommendation(s)/Next Step(s):

CONSIDER recommending to the Board of Supervisors the adoption of a resolution of support for AB 1263 (Perez): Medi-Cal: CommuniCal.

Fiscal Impact (if any):

FISCAL EFFECT: According to the Senate Appropriations Committee:
1) One-time costs of $1.4 million to develop program guidelines, seek necessary federal
approvals, and develop billing systems (50% General Fund (GF), 50% federal funds).
2) One-time costs of about $50,000 to develop regulations relating to collective bargaining of
translators by the Public Employment Relations Board (GF).
3) One-time costs of about $90,000 and ongoing costs of about $50,000 to oversee an election
by translators to choose a collective bargaining agent (GF).
4) Periodic costs up to $1 million for negotiating a memorandum of understanding with the
established bargaining unit and overseeing the implementation by CalHR (GF).
5) Ongoing costs of about $30 million per year to provide translation services in fee-for-service
Medi-Cal (GF and federal funds).
6) Unknown costs in Medi-Cal managed care (GF and federal funds). Under current law, health
plans are required to provide interpretation services, including managed care plans that
contract with DHCS. It is unclear whether the bill’s requirement to provide “certified
medical interpretation services” at reimbursement rates subject to collective bargaining
would increase costs for translation services, above the costs already being incurred.
7) The federal financial participation rate for the costs above may vary. For interpretive
services provided to children and their family members, the state can claim a 75% federal
financial participation rate. However, those costs are only eligible for a 75% federal cost
share if they are billed as administrative costs (as opposed to benefits). For childless adults,
the rate is generally 50%.

Attachments
San Francisco resolution, AB 1263
Alameda County letter, AB 1263
Santa Clara County letter, AB 1263
AB 1263 Analysis