CDCAN DISABILITY RIGHTS NEWS REPORT
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Advocacy Without Borders: One Community
News Impacting People With Disabilities, Mental Health Needs, Seniors & others, including Asian Pacific Islanders, Latinos, African Americans communities across California and beyond - Reports go out to over 45,000 people with disabilities, seniors, mental health needs & others,  organizations, policy makers across California
REPLY TO: MARTY OMOTO 
 martyomoto@rcip.com   website:   www.cdcan.us
 REPORT #091-2008  -  MAY 6, 2008 - TUESDAY
 
CALIFORNIA LEGISLATURE
* SB 483 Amendments Available
* Medi-Cal Eligibility By Sen. Kuehl
* Implements Major Parts of Deficit Reduction Act
Major Impact To Rights of Seniors, People With Disabilities, And Others On Medi-Cal
 
SACRAMENTO (CDCAN) - As previously reported by CDCAN yesterday, SB 483 by Sen. Sheila Kuehl (Democrat - Santa Monica), was amended with major changes yesterday dealing with Medi-Cal eligibility that will have major impact on the rights of hundreds of thousands of seniors and people with disabilities.  The changes, proposed by the Department of Health Cares Services, are meant to put the State in compliance with  key provisions of the federal 2005 "Deficit Reduction Act" by the US Congress and signed by the President in February 2006.
 
The original version of the bill simply raised from $500,000 to $750,000, the equity interest in a home that can be exempted for persons who seek eligibility for Medi-Cal long term care services.  Prior to the 2005 Deficit Reduction Act passed by Congress in February 2006 and signed by President Bush, the home was totally exempt. 
 
California Medi-Cal officials have said that state law needed to be changed in order to implement the changes in the 2005 Deficit Reduction Act related to the home and other related issues.  Until that happens, according to state officials, current Medi-Cal eligibility policies still apply. 
 
The new version of SB 483, as amended May 5, 2008, is available on the CDCAN website at www.cdcan.us.
 
 The bill, currently in Assembly Appropriations Committee, will likely be referred back to Assembly Health Committee due to the major changes made to the bill.  A hearing on the bill as amended will be scheduled once the bill is referred back to that committee.  No hearing date has yet been set. 
 
Amendments Proposed by Department of Health Care Services
The amendments, proposed by the Department of Health Care Services, which oversees the Medi-Cal program, were also reviewed by many stakeholder groups, including California NAELA, California Disability Community Action Network, California Advocates for Nursing Home Reform, Gray Panthers,  Resources for Independent Living, Training Toward Self Reliance, Older Women's League, and several other groups.
 
Bill Impacts Hundreds of Thousands of Seniors, People With Disabilities
The changes proposed in SB 483, including the amendments, will have major impact to hundreds of thousands of seniors, people with disabilities, mental health needs and others on Medi-Cal or seeking eligibility.  The bill, if it passes and is signed by the Governor - which is likely, will go into effect January 1, 2009.  However the many of the actual provisions will require regulations to be proposed and adopted - a process that could take several years. 
 
Note: CDCAN will be scheduling a special CDCAN Townhall Telemeeting on this bill and other Medi-Cal related issues.  Watch for CDCAN Report or go to the CDCAN website at www.cdcan.us
 
CDCAN SUMMARY OF MAY 5, 2008 AMENDMENTS
 
LIFE INSURANCE AGENT DISCLOSURE
Would change existing State law that currently covers seniors, to also include persons with disabilities, persons who are blind that a life insurance agent must provide a written notice to regarding Medi-Cal eligibility and recovery standards, when offering to sell or actual selling a financial product on the basis of how it is treated under the Medi-Cal program.
 
VALUE OF HOME (EQUITY) AND ELIGIBILITY
* Would define "equity interest" in a person's home (principal place of residence) that means the lesser of the following:
 (1) The assessed value of the principal residence determined under the most recent tax assessment, less any encumbrances of record.
(2)  The appraised value of the principal residence determined by a qualified real estate appraiser who has been retained by the\ applicant or beneficiary, less any encumbrances of record.
* Would supersede current State law and as except as provided in the bill, that an person is not eligible for Medi-Cal home and facility care if his or her equity (value) interest in their principal residence (home) exceeds $750,000.
* Would require that no later than December 31, 2011,  and each year thereafter, this amount shall be increased based on the percentage increase in the consumer price index for all urban consumers (all items, United States city average), rounded to the nearest one thousand dollars ($1,000).
 
EXEMPTIONS ON VALUE OF HOME (EQUITY)
* The bill would provide for exemption of this to a person if any of the following circumstances exist:   
(1) The spouse of the individual or the individual's child who is under 21 years of age, or who is blind or who has a disability, as defined in paragraph (3) of subsection (a) of Section 1382c of Title 42 of the United States Code, is lawfully residing in the individual's home.
* The individual was determined eligible for medical assistance for home and facility care based on an application filed before January 1, 2006.
 
HARDSHIP WAIVER
* Would require that the Department of Health Care Services make a determination that ineligibility for medical assistance for home and facility care would result in demonstrated hardship on the individual including but not be limited to any of the following:
1. The individual was receiving home and facility care prior to January 1, 2006.
2. The individual has been determined to be eligible for medical assistance for home and facility care based on an application filed on or after January 1, 2006, and before the date that regulations adopted pursuant to this section are certified with the Secretary of State.
3. The individual purchased and received benefits under a long-term care insurance policy certified by the Department of Health Care Service's California Partnership for Long-Term Care Program
4. The individual's equity interest in the principal residence exceeds the equity interest limit as provided in subdivision (b) of the bill, but would not exceed the equity interest limit under that subdivision if it had been increased by using the quarterly House Price Index (HPI) for California, published by the Office of Federal Housing Enterprise Oversight (OFHEO).
5. The applicant or beneficiary has been denied a home equity loan by at least three lending institutions, or is ineligible for any one Federal Housing Administration (FHA) approved loan or reverse mortgage.
6. The applicant or beneficiary, with good cause, is unable to provide verification of the equity value.
7. The applicant or beneficiary meets the criteria set forth in subdivision (b) of Section 14015.1.
 
ANNUITIES
* Would require an individual, as a condition of eligibility for medical assistance for home and facility care, to
disclose a description of any interest that the individual or his or her spouse has in an annuity, as specified.
* Would require the State, as an operation of law, to become a "remainder beneficiary" of certain annuities, as described, unless the individual notifies the state in writing that he or she prohibits the state from becoming a remainder beneficiary, as provided, and would require the department to inform an individual and his or her spouse of this fact at the time of the individual's application or redetermination of Medi-Cal eligibility.
* If an individual or his or her spouse notifies the state in writing that he or she prohibits the state from becoming a remainder beneficiary to his or her annuity, the bill would require the annuity to be treated as a transfer of assets for less than fair market value for purposes of determining Medi-Cal eligibility. 
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This report - and the CDCAN townhall telemeetings, and other events and projects are for all of them and for promoting advocacy without borders toward unified action.  We are one community.
To respond to this report reply to: Marty Omoto at martyomoto@rcip.com    CDCAN website: www.cdcan.us
To continue the CDCAN website, the CDCAN News Reports.  sent out and read by over 45,000 people and organizations, policy makers and media across California and to continue the CDCAN Townhall Telemeetings which since December 2003 have connected thousands of people with disabilities, seniors, mental health needs, people with MS and other disorders, people with traumatic brain and other injuries to public policy makers, legislators, and issues. Please send your contribution/donation (make payable to "CDCAN" or "California Disability Community Action Network):

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 The CDCAN Townhall Telemeetings are partially funded by a small grant from the USC UCEDD, Grant #90DD0540 from the Administration on Developmental Disabilities. (note: the opinions expressed or content in these reports do not necessarily reflect the views or opinions of the USC UCEDD.
MANY MANY THANKS to Alta California Regional Center, FEAT (Families for Early Autism Treatment), Friends of Children with Special Needs, Life Steps, Easter Seals California, Parents Helping Parents, UCP of Los Angeles and Ventura Counties, Work Training, Foothill Autism Alliance, Arc Contra Costa, Pause4Kids, Manteca CAPS, Training Toward Self Reliance, UCP, California NAELA, Californians for Disability Rights, Inc (CDR) including CDR chapters, CHANCE Inc, , Strategies To Empower People (STEP), Harbor Regional Center, Tri-Counties Regional Center, Asian American parents groups, Resources for Independent Living and many other Independent Living Centers, several regional centers, People First chapters, IHSS workers, other self advocacy and family support groups, developmental center families, adoption assistance program families and children, and others across California