HomeMy WebLinkAbout1HCITY COUNCIL STAFF REPORT
DATE: April 22, 2021 CONSENT CALENDAR
SUBJECT: RESOLUTION OF SUPPORT FOR ASSEivlBL Y BILL 1400, GUARANTEED
HEAL TH CARE FOR ALL
FROM: Justin Clifton, City Manager
BY: Anthony J. Mejia, MMC, City Clerk
RECOMMENDATION:
Adopt a Resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING ITS SUPPORT FOR ASSEMBLY BILL 1400,
GUARANTEED HEAL TH CARE FOR ALL."
BACKGROUND:
At the request of Councilmember Kors, the City Council is requested to consider whether to
adopt a resolution in support of Assembly Bill 1400, Guaranteed Health Care for All. AB 1400,
introduced by Assembly Members Ash Kalra, Alex Lee, and Miguel Santiago would enact
the following changes to existing law:
• This bill would create the California Guaranteed Health Care for All program, or
CalCare, to provide comprehensive universal single-payer health care coverage and
a health care cost control system for the benefit of all residents of the state. The bill,
among other things, would provide that CalCare cover a wide range of medical
benefits and other services and would incorporate the health care benefits and
standards of other existing federal and state provisions, including the federal
Children's Health Insurance Program, Medi-Cal, ancillary health care or social
services covered by regional centers for persons with developmental disabilities,
Knox-Keene, and the federal Medicare program. The bill would require the board to
seek all necessary waivers, approvals, and agreements to allow various existing
federal health care payments to be paid to CalCare, which would then assume
responsibility for all benefits and services previously paid for with those funds.
• This bill would create the CalCare Board to govern CalCare, made up of nine (9)
voting members with demonstrated and acknowledged expertise in health care, and
appointed as provided, plus the Secretary of California Health and Human Services
or their designee as a nonvoting, ex officio member. The bill would provide the board
with all the powers and duties necessary to establish CalCare, including determining
when individuals may start enrolling into CalCare, employing necessary staff,
negotiating pricing for covered pharmaceuticals and medical supplies, establishing
a prescription drug formulary, and negotiating and entering into necessary contracts.
ITEM NO. _.i-=--· +f __ 1
City Council Staff Report
April 22, 2021 --Page 2
Assembly Bill 1400, Guaranteed Health Care for All
The bill would require the board to convene a CalCare Public Advisory Committee
with specified members to advise the board on all matters of policy for CalCare. The
bill would establish an 11-member Advisory Commission on Long-Term Services
and Supports to advise the board on matters of policy related to long-term services
and supports.
• This bill would state the intent of the Legislature to enact legislation that would
develop a revenue plan, taking into consideration anticipated federal revenue
available for CalCare. The bill would create the CalCare Trust Fund in the State
Treasury, as a continuously appropriated fund, consisting of any federal and state
moneys received for the purposes of the act. Because the bill would create a
continuously appropriated fund, it would make an appropriation.
FISCAL IMPACT:
There is no fiscal impact as a result of adopting this Resolution.
Attachments:
1. Resolution of Support
2. Assembly Bill 1400 Fact Sheet
Justin lifton
City Manager
2
ATTACHMENT 1
3
RESOLUTION NO. --
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING ITS SUPPORT FOR
ASSEMBLY BILL 1400, GUARANTEED HEAL TH CARE FOR ALL
WHEREAS, every Californian should have a right to health care; and
WHEREAS, while the federal Patient Protection and Affordable Care Act
(PPACA) brought many improvements in health care and health care coverage, it still
leaves many Californians without coverage or with inadequate coverage; and
WHEREAS, Californians, as individuals, employers, and taxpayers have
experienced a rise in the cost of healthcare and health care coverage in recent years,
including rising premiums, deductibles, and copays, as well as restricted provider networks
and high out-of-network charges; and
WHEREAS, businesses have also experienced increases in the costs of health
care benefits for their employees, and many employers are shifting a larger share of the
cost of coverage to their employees or dropping coverage entirely; and
WHEREAS, Assembly Bill 1400 (AB 1400) would state the intent of the Legislature
to enact legislation that would create a "comprehensive universal single-payer health care
coverage program and a health care cost control system" for the benefit of all Californian
residents; and
WHEREAS, AB 1400 would consistently cover all Californians, because coverage
is based on residency, not a person's changing income or employment status; and
WHEREAS, AB 1400 would eliminate out of control co-pays and high deductibles,
and reduce costs by cutting out insurance company waste and duplication; and
WHEREAS, AB 1400 would give consumers the freedom to choose their doctor,
and would manage prescription drug costs; and
WHEREAS, CalCare would establish the CalCare Trust Fund in the State treasury
for creating cost controls and maintaining a reserve of funding for responding to health
emergencies.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS HEREBY
DETERMINES, DECLARES, APPROVES, AND RESOLVES:
SECTION 1. that the City of Palm Springs hereby supports Assembly Bill 1400,
Guaranteed Health Care for All.
4
Resolution No.
Page2
SECTION 2. The City Clerk shall transmit this resolution to the author(s) of
Assembly Bill 1400.
PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS __ DAY OF APRIL, 2021.
ATTEST:
Anthony J. Mejia, MMC
City Clerk
Justin Clifton
City Manager
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. __ is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on _________ _
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Palm Springs, California, this __ day of _________ _
Anthony J. Mejia, MMC
City Clerk
5
ATTACHMENT 2
6
Assembly Bill 1400
California Guaranteed Health Care for All Act (CaICare)
Assembly Members Ash Kalra, Lee, Santiago
Principal Co-Authors: Assembly Members Chiu and Ting and Senators Lena Gonzalez, McGuire and Wiener
Co-Authors: Assembly Members Carrillo, Friedman, K.amlager, McCarty, Nazarian, Luz Rivas, Wicks
Senators Becker, Cortese, Laird and Wieckowski
SUMMARY
Today's U.S. health care system is a complex,
fragmented multi-payer system that still leaves wide
gaps of coverage and poses significant issues of
affordability. Despite health care spending in the
U.S. far exceeding other high-income, industrialized
countries that offer a publically financed single-
payer system, we consistently report worse health
outcomes and disparities among vulnerable
populations.
AB 1400 sets in motion a single-payer health care
coverage system in California, called CalCare, for
all residents, regardless of citizenship status. By
streamlining payments and lowering per-capita
health care spending, CalCare guarantees quality
health care and long-term care without creating
barriers to care or out-of-pocket costs.
By affirming health care as a right to all
Californians and establishing a payment system that
eliminates waste and aligns reimbursements with
the actual cost of care, we can make significant
progress on financing and acquiring state and
federal approvals.
HEALTH SYSTEM STATUS Quo
An estimated 2. 7 million Californians remain
uninsured 1 and millions more with coverage often
delay or are unable to access necessary medications
or health care services due to cost. Since the
COVID-19 pandemic, that number has grown as
many workers have lost their employer-based
coverage or were unable to afford the high cost of
health care due to economic constraints.
1 Covered California estimates, January 12, 2021
Health care spending in the United States far
outpaces other industrialized countries. 2 Based on
prior years of health insurance rate filing data,
hospital costs and physician services represent an
overwhelming proportion of the overall projected
premium dollar-75% of the projected 2018
premium dollar.
Americans use significantly less health care services
than people in other industrialized countries3 -
including physician visits and hospital admissions -
yet spending is greater due to higher prices. Despite
higher spending, Americans have worse health
outcomes, including shorter life expectancy and
greater prevalence of chronic conditions. 4
Another challenge with our health care system is the
pervasiveness in health disparities. California is a
diverse state -racially, ethnically, economically,
and geographically -and vulnerable populations
face greater health risks and have less access to
safety net programs.
California's growing senior population, aged 60
years and over, is expected to grow more than three
times as fast as the total population5, which will
place additional strain on health care services. As
more aging adults enter Medicare, there will be a
need to improve access and lower costs by pooling
state and federal funds.
2 I. Papanicolas, L.R. Woskie, and A.K. Jha, "Health Care
Spending in the United States and Other High-Income
Countries," JAMA, March 13, 2018
3 H ea/th at a Glance 2017: 0 ECD Indicators -number of
doctor consultations per person, hospital discharges, and
average length of stay in hospital.
4 "U.S. Health Care from a Global Perspective: Spending, Use
of Services, Prices, and Health in 13 Countries," The
Commonwealth Fund, October 2015
5 California Department of Aging website, "Facts About
California's Elderly." https://aging.ca.gov/Data_and_Reports/
AB 1400 (Kalra et al)• Fact Sheet• February 19, 2021 7
CALIFORNIA'S GUARANTEED HEALTH CARE FOR
ALL (CALCARE)
The COVID-19 pandemic has exposed how grossly
flawed and inequitable our multi-payer health
system is and how critical it is for all Californians to
be guaranteed access to health care. AB 1400 will
bring California closer to achieving a single-payer
health care system by setting in place a
comprehensive framework of governance, eligiblity
and enrollment, benefits, delivery of care, and
health care cost controls and program standards.
By passing the California Guaranteed Health Care
for All Act, the state can position itself to seek
consolidated federal waivers from the U.S.
Department of Health and Human Services. These
waivers would make it easier for California to
consolidate health care dollars, provide flexiblity,
expand benefits, and eliminate cost-sharing.
Upon being authorized and financed, CalCare will
establish a comprehensive universal single-payer
health care coverage program and a health care cost
control system. CalCare will be set up as an
independent public entity governed by a nine
member executive board with expertise in health
care policy and delivery.
The CalCare Board's composition shall be
reflective of California's diversity and free of any
conflicts of interest. The Board shall convene a
Public Advisory Committee to advise on all matters
of policy and make informed recommendations.
THE CALCARE MISSION AND DUTIES
CalCare will be charged with overseeing the state's
single-payer system, and will ensure the following:
Comprehensive Benefits and Freedom of Choice
Californians will have access to comprehensive
health care coverage, including all primary and
preventive care, hospital and outpatient services,
prescription drugs, dental, vision, audiology,
reproductive health services, maternity and newborn
care, long-term services and supports, prescription
drugs, mental health and substance abuse treatment,
laboratory and diagnostic services, ambulatory
services, and more. Patients will have freedom to
choose doctors, hospitals, and other providers they
wish to see, without worrying about whether a
provider is "in-network."
No Premiums, Copays, or Deductibles
Californians would receive health care services and
other defined benefits without paying any premiums
or deductibles. Upon receiving care, patients would
not be charged any copays or other out-of-pocket
costs.
Addressing Health Care Disparities
CalCare would remove barriers to care and create a
special projects budget to fund the construction,
renovation, or staffing of health care facilities in
rural or underserved communities.
Long-Term Services and Supports for People with
Disabilities and the Elderly
Long-term services and supports for daily living
will be fully covered for medically determinable
conditions, whether physical, mental or due to age.
Reducing Health Care Spending and Improving
Care
CalCare would move the state to a simplified health
care payment system that will free health care
providers from devoting time on billing and instead
focus on patient care. The new system would
establish reasonable payment methodologies for
providers that are aligned with the actual costs of
care rather than driven by profits. Health care
professionals and institutional providers would be
prohibited from over utilizing services. CalCare can
negotiate bulk drug prices for all Californians and
take other measures to lower the costs of
prescription drugs.
Global Budgets for Institutional Providers
CalCare would negotiate fair, adequate global
budgets to hospitals and other institutional providers
to help contain the exorbitant costs by aligning
health care payments with the actual cost of care
and eliminating waste present in the system today.
Institutional providers may submit appeals to the
global budget to address justifiable or unforeseen
circumstances.
AB 1400 (Kalra et al)• Fact Sheet• February 19, 2021 8