BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2051
          Author:   Gonzalez (D)
          Amended:  8/5/14 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  6-2, 6/25/14
          AYES:  Hernandez, Beall, De León, DeSaulnier, Evans, Monning
          NOES: Morrell, Nielsen
          NO VOTE RECORDED:  Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
           ASSEMBLY FLOOR  :  78-0, 5/15/14 - See last page for vote


           SUBJECT  :    Medi-Cal:  providers:  affiliate primary care  
          clinics

           SOURCE  :     Author


           DIGEST  :    This bill requires the Department of Health Care  
          Services (DHCS), except as specified, within 30 calendar days of  
          receiving an application for enrollment as a Medi-Cal provider  
          from an applicant that is an affiliate primary care clinic, to  
          provide specified written notice to the applicant informing the  
          applicant that its Medi-Cal enrollment is approved.  The bill  
          requires DHCS, if an affiliate primary care clinic's Medi-Cal  
          enrollment is not approved, to collaborate with the Department  
          of Public Health (DPH) to ensure that the applicant receives  
          written notification and providing the applicant with an  
          opportunity to cure the deficiencies, as specified.  The bill  
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          imposes similar requirements upon DHCS with respect to an  
          application for enrollment into the Family Planning, Access,  
          Care, and Treatment (Family PACT) Program.  The bill also makes  
          the effective date of enrollment into the Family PACT Program  
          the later of the date DHCS receives confirmation of enrollment  
          as a Medi-Cal provider, or the date the applicant meets all  
          Family PACT provider enrollment requirements.

           ANALYSIS  :    Existing law:

          1.Establishes the Medi-Cal program, administered by DHCS, under  
            which qualified low-income individuals receive health care  
            services. The Medi-Cal program is, in part, governed and  
            funded by federal Medicaid Program provisions. 

          2.Establishes the Family PACT Program to provide comprehensive  
            clinical family planning services to individuals who meet  
            specified income requirements.

          3.Requires an applicant, a health care provider who is licensed  
            or certificated under state law or who is a professional  
            corporation seeking to receive reimbursement from  
            fee-for-service Medi-Cal, to be enrolled in the Medi-Cal  
            program as either an individual provider, or as a rendering  
            provider in a provider group.

          4.Requires an applicant that is not enrolled in the Medi-Cal  
            program, or a provider applying for continued enrollment (upon  
            written notification from DHCS), and a provider not currently  
            enrolled at a location where the provider intends to provide  
            services to Medi-Cal beneficiaries, to submit a complete  
            application package to DHCS for enrollment, continuing  
            enrollment, or enrollment at a new location or a change in  
            location.

          5.Permits an applicant or provider licensed as a clinic or a  
            health facility to be enrolled in the Medi-Cal program as a  
            clinic or a health facility without complying with the  
            provider enrollment requirements if the clinic or health  
            facility is certified by DPH to participate in the Medi-Cal  
            program.

          This bill:


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          1.Requires DHCS, within 30 calendar days of receiving an  
            application for enrollment as a Medi-Cal provider from an  
            affiliate primary care clinic that has been certified for  
            enrollment by DPH, to provide written notice to the applicant  
            informing the applicant that its Medi-Cal enrollment is  
            approved.

          2.Requires DHCS, if an affiliate primary care clinic's Medi-Cal  
            enrollment is not approved, to collaborate with DPH to ensure  
            that the applicant receives written notification informing the  
            applicant of any deficiencies and providing the applicant with  
            an opportunity to cure the deficiencies within 30 days of the  
            date of the written notice. 

          3.Requires DHCS to have 30 days from the receipt of information  
            from the applicant to approve or deny the Medi-Cal enrollment.

          4.Requires DHCS to enroll the affiliate primary care clinic  
            retroactive to the date of certification.

          5.Requires DHCS, within 30 calendar days of receiving a complete  
            application for enrollment into the Family PACT Program from a  
            Medi-Cal provider affiliate primary care clinic to do one of  
            the following:

             A.   Approve the provider's Family PACT Program application,  
               provided the applicant meets the Family PACT Program  
               provider enrollment requirements;  or

             B.   Notify the applicant in writing of any deficiencies in  
               the Family PACT Program enrollment application if the  
               provider is an enrolled Medi-Cal provider in good standing.  
                Specifies the applicant has 30 days from the date of  
               written notice to correct any identified deficiencies.  
               Requires DHCS, upon receipt of all requested corrections,  
               to approve the application within 30 calendar days.

          1.Prohibits DHCS from proceeding with the above actions if the  
            provider is not an enrolled Medi-Cal provider in good standing  
            until DHCS receives confirmation of good standing and  
            enrollment as a Medi-Cal provider.

          2.Requires the effective date of enrollment into the Family PACT  
            Program to be the later of the date DHCS receives confirmation  

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            of enrollment as a Medi-Cal provider, or the date the  
            applicant meets all Family PACT Program provider enrollment  
            requirements.

           Comments
           
          According to the author's office, certain non-profit  
          corporations that operate multiple primary care clinics are  
          entitled to use a streamlined application process that allows  
          affiliated primary care clinics to receive a DPH license within  
          30 days of submitting a completed application.  This streamlined  
          process, in place since 2011, has eliminated unnecessary  
          paperwork, eased administrative burdens, and significantly sped  
          up the licensing process for these affiliated clinics.  
          Unfortunately, the streamlined licensure process did not  
          specifically address the timelines by which DHCS must complete  
          an affiliate clinic's enrollment into Medi-Cal.  Consequently,  
          while affiliate clinics are entitled to receive their license,  
          open their doors, and provide services to patients within 30  
          days of submitting an application to DPH, they often cannot get  
          paid for providing those services until their enrollment in  
          Medi-Cal is complete, which can take three to four months.
           
          Affiliate Primary Care Clinics and Provider Enrollment Process.    
          There are approximately 1,150 primary care clinics currently  
          licensed in California, and 302 affiliate clinics.  SB 442  
          (Ducheny, Chapter 502, Statutes of 2010) established an  
          expedited licensure process for an affiliate primary care clinic  
          or a mobile health care unit operated as a primary care clinic.  
          Certain non-profit corporations that operate multiple primary  
          care clinics can use a streamlined application process that  
          allows affiliated primary care clinics to receive a DPH license  
          within 30 days of submitting a completed application.  In  
          2010-11, DPH received 37 applications for affiliate clinics, in  
          2011-12, 52 applications, and 2012-13, DPH received 60  
          applications.

          When DPH certifies affiliate clinics for participation in  
          Medi-Cal, the affiliate clinic must still be approved by DHCS'  
          Provider Enrollment Division (PED) in order for the affiliate  
          clinic to be able to bill fee-for-service Medi-Cal.  However,  
          because affiliate clinics have already been certified by DPH to  
          participate in Medi-Cal, DHCS' PED's review of the affiliate  
          clinic is limited to checking the list of providers who are  

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          suspended and ineligible to participate in Medi-Cal, checking a  
          federal database, and reviewing the affiliate clinic's provider  
          agreement form.

          PED administers statutory enrollment requirements to prevent and  
          address Medi-Cal fraud. A health care provider seeking to  
          provide services in the fee-for-service Medi-Cal program must  
          submit a complete application package for enrollment, continued  
          enrollment, enrollment at a new location or a change in  
          location. The application package includes an application form  
          (which must be signed under penalty of perjury or notarized), a  
          disclosure statement, and a provider agreement. DHCS' PED  
          indicates it receives 1,400 applications from providers each  
          month and are required to process applications within 90 days  
          for physician providers and 180 days for non-physician  
          providers. Affiliate clinics are exempt from this process  
          because they are certified by DPH and there is no requirement  
          for DHCS to complete the review of affiliate clinics within a  
          specific time frame. Under this bill, DHCS will be required to  
          complete its review of an affiliate clinic that has been  
          certified for enrollment by DPH within 30 days.

           Family PACT Program  .  The Family PACT Program provides family  
          planning services to individuals with incomes under 200% of the  
          federal poverty level.  The 2014-15 Budget for Family PACT is  
          $440 million ($147 million General Fund).  In order to be a  
          Family PACT provider, the provider must be enrolled as a  
          Medi-Cal provider, and must attend specific orientation approved  
          by DHCS in comprehensive family planning services.  This bill  
          requires DHCS to process a complete Family PACT application for  
          enrollment by a Medi-Cal provider affiliate clinic, which has  
          met Family PACT provider eligibility requirements, and to  
          approve the application or notify the applicant of any  
          deficiencies.

           Prior legislation
           
          SB 1529 (Alquist, Chapter 797, Statutes of 2012) revises  
          screening, enrollment, disenrollment, suspensions, and other  
          sanctions for fee-for-service Medi-Cal providers and suppliers  
          to conform to the federal Affordable Care Act.
          
          SB 857 (Speier, Chapter 601, Statutes of 2003) made numerous  
          changes to the Medi-Cal program intended to address provider  

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          fraud, including establishing new Medi-Cal application  
          requirements for new providers, existing providers at new  
          locations, and providers applying for continued enrollment.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (per Senate Health Committee analysis 6/25/14 -  
          unable to reverify at time of writing)

          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Academy of Family Physicians
          California Primary Care Association
          Planned Parenthood Advocacy Project Los Angeles County
          Planned Parenthood Affiliates of California
          Planned Parenthood Mar Monte
          Planned Parenthood of Orange and San Bernardino Counties
          Planned Parenthood of Santa Barbara, Ventura and San Luis Obispo  
          Counties
          Planned Parenthood of the Pacific Southwest
          Planned Parenthood Pasadena and San Gabriel Valley
          Planned Parenthood Shasta Pacific Action Fund
          Six Rivers Planned Parenthood

          OPPOSITION  :    (per Senate Health Committee analysis 6/25/14 -  
          unable to reverify at time of writing)

          California Right to Life Committee, Inc.

           ARGUMENTS IN SUPPORT  :    This bill is supported by clinic  
          providers, including the California Primary Care Association and  
          Planned Parenthood Affiliates of California (PPAC), to  
          streamline the Medi-Cal enrollment process for affiliated  
          primary care clinics.  PPAC states the streamlined licensure  
          process created by SB 442 (Ducheny) did not address the  
          timelines under which these clinics are enrolled as Medi-Cal  
          providers, so clinics can receive a license to open and begin  
          providing services to patients within 30 days, but cannot be  
          reimbursed for Medi-Cal services until approved as an eligible  
          provider, which can take up to three or four months.  During  
          this time, PPAC indicates its health centers must operate  
          without a revenue stream, making it even more challenging and  
          expensive to open a new health center than it would be  

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          otherwise.  For Family PACT, PPAC indicates the vast majority of  
          its patients are Family PACT eligible, so an enrollment delay  
          for this program results in it having to operate clinics without  
          this revenue stream for three to four months.  PPAC argues this  
          bill will better align the licensing and Medi-Cal and Family  
          PACT enrollment processes for affiliate community clinics by  
          requiring DHCS to approve and enroll affiliated primary care  
          clinics certified by DPH within 30 days.  This will allow them  
          to open their doors more quickly and begin providing needed  
          health care services to the individuals and families in their  
          communities. 

           ARGUMENTS IN OPPOSITION  :    The California Right to Life  
          Committee, Inc. (CRLC) writes in opposition that this bill  
          offers unequal and unjustifiable advantage to one organization,  
          Planned Parenthood.  CRLC argues this bill demands exceptional  
          service from the state in support of affiliate primary family  
          planning agencies by requiring the authorizing agency to work  
          with and coach the petitioning clinic on how to properly  
          complete the state's form and comply with state requirements,  
          and retroactively awarding the clinic for its inability to  
          comply with application requirements.  CRLC states this is  
          favoritism and cronyism in its most despicable form for a state  
          agency, and the state licensing requirements and agency's first  
          priority should be the protection of the customer to be served  
          by the petitioning agency.  CLRC concludes that this bill places  
          the state health licensing department at the service of a single  
          petitioning organization, thereby denigrating the needs of the  
          customer to the financial benefit of the service provider.
           
           

           ASSEMBLY FLOOR  :  78-0, 5/15/14
          AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  

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            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED: Mansoor, Vacancy


          JL:nl  8/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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