BILL ANALYSIS Ó AB 1297 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1297 (Chesbro) As Amended August 31, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |70-0 |(May 12, 2011) |SENATE: |38-0 |(September 7, | | | | | | |2011) | ----------------------------------------------------------------- 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