BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1808
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1808 (Galgiani) - As Amended:  April 19, 2010 

          Policy Committee:                              Human  
          ServicesVote:6-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill shifts responsibility for the provision of mental  
          health services for foster youth placed out-of-county.  
          Specifically, this bill shifts the responsibility for the  
          provision of medically necessary mental health services from the  
          county-of-origin to the host county in order to increase access  
          to mental heath services for youth. 

           FISCAL EFFECT  

          1)Annual increased costs in the Early Periodic Screening  
            Treatment and Diagnosis Program (EPSDT) in excess of $10  
            million (50% GF) to $20 million (50% GF) to the extent this  
            bill increases access to mental health services for youth who  
            face treatment and service barriers when placed out-of-county.  


          2)This estimate likely underestimates the actual need for mental  
            health treatment for many foster youth placed out-of-county.  
            This bill addresses a complex, longstanding, and costly issue  
            by switching responsibilities from one set of counties to  
            another. The actual costs associated with this bill may be  
            much greater depending on whether access is truly improved for  
            foster youth benefiting from this change. 

          3)Foster children have a high rate of mental health diagnosis,  
            treatment needs, and associated expenditures compared to other  
            children. Large studies have shown mental health costs accrue  
            for foster youth at five to ten times the rate for comparison  
            children. 









                                                                  AB 1808
                                                                  Page  2

           COMMENTS  

           1)Rationale  . This bill moves responsibility for the provision of  
            mental health services for foster youth from the  
            county-of-origin to the host county. The author indicates  
            current law arrangements result in treatment delays and  
            denials when a child is placed out-of-county and the host  
            county must recover mental health funding from the county from  
            which the child was removed. 

           2)Background  . The Early and Periodic Screening, Diagnosis and  
            Treatment Program (EPSDT), is a federally-mandated benefit  
            under Medi-Cal. States must provide medically necessary  
            services to specified children. If a physician screening  
            determines a child needs additional treatment, Medi-Cal must  
            provide the service according to the federal mandate. EPSDT is  
            the source of funding for a majority of mental health  
            treatment for children in foster care. Mental health services  
            provided to foster youth include outpatient services,  
            medication support, behavioral therapy, and 24-hour care. 

           3)Related Legislation  . The most recent among numerous attempts  
            to resolve the issue of access to mental health treatment for  
            out-of-county foster youth was SB 785 (Steinberg), Chapter  
            469, Statutes of 2007.  SB 785 required the California  
            Department of Mental Health (DMH) to create standardized  
            contracts, forms, and procedures to facilitate the receipt of  
            medically necessary specialty mental health services to foster  
            youth in out-of-county placements.  DMH provided counties with  
            the standard agreement and forms for the provision of  
            out-of-county services in May of 2009. Counties are in the  
            process of implementing protocols established by SB 785.

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081