BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 870
                                                                  Page  1


          (  Without Reference to File  )
           
          SENATE THIRD READING
          SB 870 (Budget and Fiscal Review Committee)
          As Amended  June 13, 2014
          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately
           
           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  This is one of two Omnibus Health Trailer Bills for  
          2014-15.  This bill contains necessary changes related to the  
          Budget Act of 2014.  This bill makes various statutory changes  
          to implement the 2014-15 budget.  Specifically,  this bill  :

          1)Requires behavioral health treatment (BHT) to be a covered  
            Medi-Cal service for individuals under age 21 to the extent  
            required by the federal government.  Requires the Department  
            of Health Care Services (DHCS) to implement this benefit only  
            after:  a) receiving all necessary federal approvals to obtain  
            federal funds for these services; b) an appropriation for  
            necessary state funding has been made; and c) DHCS has  
            consulted with stakeholders.  Authorizes DHCS to enter into  
            new contracts, and amend existing contracts, to provide or  
            arrange for BHT services.  Authorizes DHCS to seek approval of  
            necessary state plan amendments or waivers to implement this  
            benefit.

          2)Expresses the intent of the Legislature that Medi-Cal rates be  
            adjusted on an ongoing basis to ensure adequate access to  
            services based on access monitoring performed by DHCS.

          3)Increases the Medi-Cal reimbursement rates for Programs of All  
            Inclusive Care for the Elderly (PACE), beginning April 1,  
            2015, by increasing payments from a minimum of 90% of the  
            equivalent fee-for-service cost to a minimum of 95% of the  
            equivalent fee-for-service cost.

          4)Authorizes DHCS to collect supplemental rebates on specialty  
            high cost drugs, such as hepatitis C treatments and blood  
            factor.  Requires DHCS to set the clinical guidelines for  
            these drugs.  Requires that capitation payments to managed  
            care plans be reduced to account for these classes of drugs,  
            and instead, provide plans with a "kick" payment when drugs in  








                                                                  SB 870
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            the class are prescribed.  

          5)Establishes a three-year pilot program in Los Angeles County  
            to enable school districts to allow students enrolled in  
            Medi-Cal managed care plans to receive vision care services at  
            school through a mobile vision service provider.  Requires the  
            Medi-Cal managed care plans in a participating county to  
            contract with one or more mobile vision care service providers  
            to deliver the services if a school district enters into a  
            memorandum of understanding with a mobile vision care service  
            provider.  Requires the Medi-Cal managed care plan to  
            compensate the mobile vision services provider for the cost of  
            the vision examination, dispensing of the lenses, and eyeglass  
            frames.  Requires DHCS to annually adjust capitation rates for  
            participating Medi-Cal managed care plans.

          6)Authorizes a one-time appropriation of $3.2 million from the  
            Major Risk Medical Insurance Fund to be allocated to health  
            benefit plans that are funded by contributions made by  
            agricultural employers, where 85% or more of the plan's  
            eligible participants are agricultural employees for work  
            performed and covered under a collective bargaining agreement,  
            and meet other specified requirements.

          7)Authorizes a one-time appropriation of $37.5 million from the  
            Major Risk Medical Insurance Fund to be allocated to DHCS for  
            purposes of electronic health records technical assistance in  
            accordance with the State Medicaid Health Information  
            Technology Plan, as specified in Welfare and Institutions Code  
            Section 14046.1.
                                                                  
          8)Requires the Department of Public Health (DPH) to establish up  
            to four two-year public health demonstration projects by  
            awarding competitive grants for innovative, evidence-based  
            approaches to provide outreach, human immunodeficiency virus  
            (HIV) and hepatitis C screenings, and linkage to, and  
            retention in, quality health care for vulnerable and  
            underserved individuals with a high risk for HIV infection.   
            Requires DPH to evaluate the projects to determine statewide  
            applicability and specifies the qualifications of grant  
            applicants.

          9)Authorizes the Office of Statewide Health Planning and  
            Development to make grants, through contracts with medical  








                                                                  SB 870
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            residency programs, to support new residency slots that meet  
            all of the qualifications of the Song Brown Program.  Requires  
            that the new residency slots, in order to receive financial  
            support, give priority to graduates of California-based  
            medical schools.

          10)Reappropriates Department of Developmental Services Funds.

           COMMENT  :  This bill is a budget trailer bill within the 2014-15  
          budget package to implement actions taken affecting the  
          Departments of Developmental Services, Health Care Services and  
          Public Health, and the Office of Statewide Health Planning and  
          Development.


           Analysis prepared by  :    Andrea Margolis / BUDGET / (916)  
          319-2099


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