BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1297
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1297 (Chesbro)
          As Amended August 31, 2011
          Majority vote
           
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          |ASSEMBLY:  |70-0 |(May 12, 2011)  |SENATE: |38-0 |(September 7,  |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    HEALTH  

           SUMMARY  :  Expedites, beginning on July 1, 2012, federal 
          reimbursement to counties for their Medi-Cal specialty mental 
          health claims by conforming the procedures and timeframes 
          required by the Department of Mental Health to federal Medicaid 
          requirements and the approved Medicaid state plan and waivers.

           The Senate amendments  : 

          1)Require reimbursement amounts and administrative costs to be 
            claimed in a manner consistent with federal Medicaid 
            requirements and the approved Medicaid state plan and waivers.

          2)Require the existing 15% cap on counties' administrative costs 
            to be based on the total actual cost of direct client 
            services, instead of the total cost of direct client services 
            in existing law.

          3)Clarify that the state match used to draw down federal 
            matching funds, for purposes of federal reimbursement, comes 
            from county funds and not state funds.

          4)Delay the effective date of this bill to July 1, 2012.

          5)Make other technical, clarifying, and conforming changes.

           AS PASSED BY THE ASSEMBLY , this bill was substantially similar 
          to the version approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee,

                            Fiscal Impact (in thousands)









                                                                  AB 1297
                                                                  Page  2

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Removal of State Maximum                                 
          potentially significant                                Federal*
          Allowance limits

          Start-up administrative       $0        $150      $100 
          General/**
          expenditures                                           Federal

          *    Increased federal financial participation
          **  50% General Fund, 50% federal funds

           COMMENTS  :  The Senate version of this bill differs from the 
          Assembly-approved version in that the Senate amendments clarify 
          provisions relating to counties' administrative cost limit and 
          the required state match for additional federal funds; delay 
          implementation of this bill until July 1, 2012; and, make other 
          technical and conforming changes.  

          According to the sponsor, the California Mental Health Directors 
          Association, this bill seeks to eliminate unnecessary state-only 
          Medi-Cal requirements in the provision of Medi-Cal specialty 
          mental health services to ensure that the state accesses all 
          available federal resources, particularly during these 
          economically challenging times.  This bill is intended to 
          simplify the state's standards and guidelines for these 
          services, including federal reimbursement amounts and claims 
          submission timelines, to ensure that they are consistent with 
          federal Medicaid requirements and California's approved Medicaid 
          state plan and waivers.  


           Analysis Prepared by  :    Cassie Royce / HEALTH / (916) 319-2097 

          FN: 0002651