TITLE
Recommendation to authorize City Manager, or designee, to execute an agreement, and any subsequent amendments including amending the terms, extending the grant period, or increasing grant amounts, with the State of California Health Benefits Exchange (also known as “Covered California”) to facilitate outreach, enrollment and retention into the insurance programs offered through Covered California, to receive and expend grant funding in the amount of $50,000, for a period of one year, with the option to extend the agreement for four additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
In 2010, the federal government enacted the Patient Protection and Affordable Care Act (PPACA), which strives to reduce the number of Americans living without health insurance, while controlling the cost of health care. Covered California, the State of California’s Marketplace Exchange, provides a consumer-focused single portal entry where eligible consumers can shop for, compare and purchase health insurance and receive subsidies. The mission of Covered California is to increase the number of insured Californians, improve health care quality, lower costs, and reduce health disparities through an innovative, competitive marketplace that empowers consumers to choose the health plan and providers that give them the best value.
Covered California offers financial assistance to lower the cost of health insurance in the form of an Advanced Premium Tax Credit (APTC) and Cost Sharing Reductions (CSR) to individuals and families earning 138 to 400 percent of the Federal Poverty Level (FPL). Based on the Governor’s May Revised Budget, starting as early as January 2020, those with incomes up to 600 percent FPL will be eligible for financial assistance. In addition, the State of California will implement State tax penalties through the Franchise Tax Board to those found not having health coverage. With the ever-changing landscape of health law and programs, the Long Beach Department of Health and Human Services (Health Department) provides information, education, and assistance reflective of the community that is Long Beach.
The Health Department, a Certified Enrollment Entity since October 2014, has conducted outreach and education to over 20,000 individuals and completed over 10,000 applications for health coverage. The funding will be used to continue education, enrollment, and navigation activities to populations that continue to have high rates of uninsured. Those populations include, but are not limited to, Latino, African American, Asian American, young adults and LGBTQ.
This matter was reviewed by Deputy City Attorney Taylor M. Anderson on June 26, 2019 and by Revenue Management Officer Geraldine Alejo on June 27, 2019.
TIMING CONSIDERATIONS
City Council action is requested on July 16, 2019, to continue the program without interruption.
FISCAL IMPACT
The City will receive grant funding in the amount of $50,000 for a one-year period. There is sufficient funding appropriation in the Health Fund Group in the Health and Human Services Department, offset by grant revenues. No match or in-kind service mandate is required. This recommendation has no staffing impact beyond normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
KELLY COLOPY
DIRECTOR OF HEALTH AND HUMAN SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER