California Budget Crisis: Assembly Budget Subcommittee Rejects Governor’s In-Home Supportive Services Cuts

Pushes Proposal for IHSS Provider Fee That Can Draw Down Federal Funds  IHSS Worker Fee Would Be Similar To Quality Assurance Provider Fees for Nursing Homes and ICF/DD Providers

 CALIFORNIA DISABILITY COMMUNITY ACTION NETWORK
#092-2010 –  MAY 26, 2010 -  WEDNESDAY

SACRAMENTO, CALIF (CDCAN) [Updated 05/26/2010  10:40 AM  (Pacific Time)] -  The Assembly Budget Subcommittee #1 on Health and Human Services, chaired by Assemblymember Dave Jones (Democrat – Sacramento), rejected this morning several proposed reductions by Governor Arnold Schwarzenegger including those impacting In-Home Supportive Services (IHSS).  None of the actions are final – and in several cases, still need action from the Senate. 

The subcommittee is pushing forward a proposal unveiled yesterday by Assembly Speaker John Perez (Democrat – Los Angeles) that would look at the possibility of imposing what Assemblymember Jones said would be a “modest fee” on IHSS workers that would be matched with federal Medicaid funds and possibly save the State $150 million. 

Though no details were released, Jones said the approach would be similar to provider fees (sometimes referred to as a provider tax) on certain nursing facilities and also Intermediate Care Facilities for the Developmentally Disabled (ICF/DD) that is then matched with federal Medicaid funds and returned to the State.  The increased federal funding is then partially returned back to those providers in the form of a higher reimbursement rate from the State – with the remaining money going to the State general fund. 

It is not clear how this approach would work with individual IHSS providers – or if it would mean an increased amount of pay they would receive as a result. 

Assemblymember Wes Chesbro (Democrat – Eureka) said he was in favor of the proposal as long as federal funds could be matched and other details worked out. 

Jones, in answering questions from the two Republican members of the Assembly subcommittee, said that the proposal was a work in progress and that details still needed to be worked out – but that the approach has worked in other health budget areas.

The proposal received 3 votes with the two Republican members abstaining and is certain to receive later this morning the 4th vote to pass it out of this subcommittee (the missing member for this particular vote was Hector De La Torre who had to leave briefly to chair another hearing). 

The Assembly subcommittee is still in session – and is meeting at this point at the same time the Senate Budget and Fiscal Review Committee is holding its hearing on Medi-Cal, mental health and other health budget issues. 

More details will be reported later today in a CDCAN Report on this hearing and the Senate Budget and Fiscal Review Committee hearing. 

As previously reported, both houses of the Legislature have held and scheduled their final budget subcommittee hearings todayand Thursday this week, taking final action on several of the Governor’s major proposals impacting people with disabilities, mental health needs, the blind, seniors and their families, before the budget process heads to the next phase of “budget conference committee” hearings in early June.  

Controversy Surrounds Quality Assurance Fee for Nursing Facilities

The Quality Assurance fees on nursing facilities – authorized in 2004 by AB 1629, which the Schwarzenegger Administration is seeking to renew and expand this year – is controversial among some advocates for people with disabilities and seniors because the higher reimbursements that nursing facilities received in return for paying a fee was tied to improved quality of care – and also higher wages for direct care workers.  There is some controversy regarding whether improvements are being made and on oversight by the State.  That issue is being heard in the Senate Budget and Fiscal Review Committee today – and is likely to be heard in the Assembly Budget Subcommittee on Health and Human Services on Thursday. 

SUMMARY OF SOME OF THE ACTIONS TAKEN THIS MORNING BY  ASSEMBLY BUDGET SUBCOMMITTEE #1 ON HEALTH & HUMAN SERVICES

Some of the  actions taken by the Assembly Budget Subcommittee this morning:

  • REJECTED 4-0 the Governor’s Proposed Elimination of $18 million of Offender Treatment Program (Department of Alcohol and Drug Programs)
  • REJECTED 4-0 the Governor’s January proposal for  CalWORKs Grant Reduction
  • REJECTED 4-0 the Governor’s Proposed Elimination of the CalWORKs Recent Non-Citizen Entrants Program
  • REJECTED 4-0 the Governor’s January Proposals to Reduce IHSS [In-Home Supportive Services (using functional index scores, and also to roll back State participation for IHSS worker wages. This action is a formality – the Governor withdrew these two proposals when he released his May 14th budget revisions]
  • APPROVED 6-0 establishment of an IHSS “budget advisory group” that would be “open and transparent” to look at budget savings for the IHSS program. 

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  • disabledadvocacy

    See “Autism Home Healthcare Staffing Realities” on You Tube for an insight look at how hard families have to fight for obvious needs. Here’s a family that shows that they have a child who would cost state of California over 356,000 yr. PLUS (plus, meaning the basic cost of institutional care isn’t factoring in the 1:1 this autistic patient would need). This family is willing to KEEP the child at HOME, which saves the state over 200,000 a year, yet the state agency charged with duty to provide home health care under Olmstead Act and other laws, is actually FIGHTING this family, and telling them, “we aren’t equipped to help you….you should place your son in an institution until the budget cuts are over.” As if they will ever be over. What is so news worthy about this story/case, is that the FAMILY has managed to do what GOVERNMENT has FAILED to do: keep their high risk, costly child at HOME. Yet, despite the family doing the job government can’t do, the same government FIGHTS the family and tells them, “we can’t offer you more than 12,000 dollars a month in home health care services,” though the cost of OUT of home care costs would be around $33,000 month!. Now, that is clearly a REASON why California continues to be one of the states that just doesn’t understand how to SAVE money.
    Source: Basic cost for institutional care at Fairview Developmental Center is around 356,000 per year, NOT including 1:1 or 2:1 overtime costs paying extra nurses and staff at institution to care for the type of autistic person portrayed in this and other videos on you tube under cdfoakley and kgaccount. The cost to KEEP this type of autistic person at HOME is FAR less than what it would cost to place him OUT of home. Keep in mind, this person portrayed in videos is OVER 18, so family does NOT have to keep him at home. But they are willing. A rare case indeed, which is a case study in cost effective in home care vs. out of long term nursing care expenses. So the question remains, if California officials do NOT provide this family with needed in HOME supports (nursing assessments repeatedly assessed this case at 2:1) then the state will be paying FAR more than what they need to pay to KEEP the child at HOME.