BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 38| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 38 Author: Eggman (D) Amended: 6/13/16 in Senate Vote: 21 SENATE HEALTH COMMITTEE: 9-0, 6/22/16 AYES: Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen, Pan, Roth, Wolk SENATE APPROPRIATIONS: 7-0, 8/1/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 70-5, 6/2/15 - See last page for vote SUBJECT: Mental health: Early Diagnosis and Preventive Treatment Program SOURCE: California Psychiatric Association DIGEST: This bill establishes the Early Diagnosis and Preventive Treatment pilot program at the Department of Health Care Services to utilize integrated systems of care for persons with severe mental illness and children with severe emotional disturbance who have private health benefit coverage. ANALYSIS: Existing law: 1)Establishes the Medi-Cal program, administered by the Department of Health Care Services (DHCS), under which qualified low-income persons receive health care benefits. Establishes, under the terms of a federal Medicaid waiver, a managed care program providing Medi-Cal specialty mental AB 38 Page 2 health services for eligible low-income persons administered through local county mental health plans under contract with DHCS. 2)Requires county mental health plans to provide specialty mental health services to eligible Medi-Cal beneficiaries, including both adults and children. 3)Establishes the Department of Managed Health Care to regulate health plans and the California Department of Insurance to regulate health insurers, and establishes essential health benefits which include mental health and substance use disorder services, including behavioral health treatment. 4)Establishes the Mental Health Services Act (MHSA), enacted by voters in 2004 as Proposition 63, which provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults, and seniors through a one percent income tax on personal income above $1 million to be deposited to the Mental Health Services Fund (MHSF). This bill: 1)Establishes the Early Diagnosis and Preventive Treatment (EDAPT) pilot program within DHCS to utilize integrated systems of care to provide early interventions, assessment, diagnosis, a treatment plan, and necessary services for individuals with severe mental illness and children with severe emotional disturbance using an interdisciplinary team of physicians, clinicians, advocates, and staff who coordinate care on an outpatient basis. 2)Requires DHCS to use funds appropriated by the Legislature to provide reimbursement to the EDAPT program for services provided to persons who are referred to that program but whose private health benefit plan does not cover the full range of services. 3)Permits DHCS to solicit and accept funds from private, federal, or other sources to use for purposes of this program. AB 38 Page 3 4)Prohibits these funds from being used to pay for services normally covered by the patient's private health benefit plan and requires that the funds only be used to augment private health benefit plan coverage to provide the patient with the full range of necessary services. 5)Defines "EDAPT program" as the EDAPT program provided at the Davis campus of the University of California. 6)Defines "private health benefit plan" as a program or entity that provides, arranges, pays for, or reimburses the cost of health benefits, but does not include coverage provided through the Medi-Cal system. 7)Requires an evaluation if the University of California (UC), Davis accepts money for this purpose in the fourth year after the program is established but not later than January 1, 2022. Requires the evaluation to include: a) Evidence as to whether the early psychosis approach reduces the duration of untreated psychosis, reduces the severity of symptoms, improves relapse rates, decreases the use of inpatient care in comparison to standard care, supports educational and career progress, and reduces the cost of treatment in comparison to standard treatment methodologies; b) The number of patients with private health benefit plans served by the EDAPT pilot program in the 12 months prior to implementation of the pilot program; c) The number of patients with private health benefit plans served by the EDAPT pilot program; d) The number of patients in the program who are considered stabilized, as a percentage of patients served; e) The number of patients needing services beyond those provided in the program and the nature of those services; and, f) Any other information the university deems necessary. 8)Sunsets this bill's provisions on January 1, 2022. Comments AB 38 Page 4 1)Author's statement. According to the author, of the 58 counties in California, only 17 currently provide early detection and intervention for the prevention of psychosis. While research conducted throughout the United States and Canada shows that these programs improve the symptoms and overall outcomes for those experiencing psychosis, the full bundle of effective services may not be available to those consumers with private insurance. This pilot project seeks to fill the gap by providing for the those ancillary services that are pivotal for the best possible outcome, while demonstrating for insurance providers the benefits of the full bundle of services. With the research produced by this pilot program, more providers may be able to establish early detection and intervention for psychosis, and improve lives across the state. 2)EDAPT program. The program began in 2004 and is a specialty within the UC Davis Department of Psychiatry. It is a recovery-based treatment approach that provides services for two years focusing on reducing and managing symptoms and distress and improving individuals' ability to achieve success in independent roles. State-of-the-art clinical assessment tools are used to evaluate each client to determine the appropriate diagnosis in order to guide treatment. Assessments of psychosocial functioning also determine areas where targeted treatment is needed. Regular and frequent appointments with a psychiatrist are tailored to control and alleviate symptoms with the fewest amounts of side effects. Each client has a clinical case manager who helps to identify the client's unique needs and recovery goals, which will be used to develop a treatment plan that encourages the client to build upon their strengths and take an active role in treatment decisions. Weekly groups for clients and their family members are designed to provide support and improve understanding of the illness, develop stress and symptom management techniques, and enhance communication and problem-solving skills. Psychoeducation and support are provided to increase understanding about the illness, improve stress management and communication skills within the family, and develop problem solving skills. Supported Education and Employment services are provided as part of a collaboration with Crossroads Diversified Services, Inc. at an hourly fee-for-service rate. These services can be provided within the client's home, school or workplace to improve everyday AB 38 Page 5 functioning and help clients achieve their goals of social, academic and occupational recovery The services include all those listed above, and an estimate of cost from the program is between $12,000-$15,000 per year for each patient. Of this, roughly 60% is covered by Medi-Cal and the remainder is covered through MHSA-Prevention and Early Intervention (PEI) funds through Sacramento County. The program also provides services to those with private insurance, but does not receive the MHSA funds to cover the remaining 40% of the service costs, and these cannot be billed to the insurance, so the patients are left without, or with high out-of-pocket costs. Of the roughly 50-60 new cases referred to the program each year, half have private insurance and half have Medi-Cal. 3)Research. Background provided by the author's office includes a study published in 2008 indicating that clinicians and researchers in Canada and the United States have established a number of early intervention programs and research sites on the early course of psychosis and the prodromal period (period of initial symptom to full development) that commonly precedes psychotic disorders. In the United States several programs were described including EDAPT. The study states that EDAPT focuses on the reduction of long-term disability by fostering collaboration between a clinical team and an extensive community network. Researchers from sites in both countries have formed a consortium to launch the North American Prodrome Longitudinal Study to gain a better understanding of the prodromal period of the illness and prediction of conversion from the prodromal to psychosis. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to Senate Appropriations Committee: 1)Ongoing administrative costs likely in the range of $75,000 to $150,000 per year over the life of the program for the DHCS to manage the program and ensure that state funding is used for the allowed uses (General Fund). AB 38 Page 6 2)Ongoing program costs of about $400,000 per year to provide state funding for services and supports not covered by private health care coverage (General Fund). Currently, the UC Davis program admits 50-60 new patients each year, patients generally participate for two years, annual costs are about $15,000, and roughly 40% of per-capita program costs are not covered by private insurance. 3)One-time costs likely between $100,000 and $200,000 for an evaluation of the UC Davis program (General Fund). SUPPORT: (Verified8/17/16) California Academy of Physician Assistants California Hospital Association California Psychiatric Association National Association of Social Workers, California Chapter OPPOSITION: (Verified8/17/16) None received ARGUMENTS IN SUPPORT: According to the California Psychiatric Association, this bill will provide incentives for health plans or insurers - who typically solely provide access to psychiatrists, medications and therapy - to provide community education and outreach, case management and evidence-based education, vocation, and family support services. In turn, over the four years of the program, cost savings found in the reduction of expensive first hospital admissions are expected to demonstrate that the provision of previously uncovered benefits can be cost effective. This bill provides for results to be collected and reported out to the Legislature. In employing a coordinated specialty care model, the associated high rates of engagement among individuals who are typically difficult to engage in treatment will yield further dividends as measures of occupational and social functioning improve significantly over AB 38 Page 7 time, symptoms decline, and rates of remission increase. Psychosis will no longer mean an assurance of severe disability, disrupted education and vocational goals, strained relationships and untold suffering in the individual, the family and community. People with psychotic disorders can be productive contributing citizens. The California Academy of PAs writes that EDAPT is a promising model that has shown success in improving health outcomes for people experiencing mental illness nationally and in other pilot projects. ASSEMBLY FLOOR: 70-5, 6/2/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Weber, Wilk, Williams, Wood, Atkins NOES: Bigelow, Beth Gaines, Grove, Harper, Kim NO VOTE RECORDED: Brough, Chávez, Mayes, Melendez, Waldron Prepared by:Teri Boughton / HEALTH / (916) 651-4111 8/18/16 16:34:39 **** END ****