BILL ANALYSIS Ó AB 38 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 38 (Eggman) As Amended August 19, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |(June 2, 2015) |SENATE: |39-0 |(August 29, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) ---------------------------------------------------------------------- | | | | | | | | | | | | |COMMITTEE VOTE: | |(August 30, |RECOMMENDATION: |concur | | |16-0 |2016) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ---------------------------------------------------------------------- (Health) Original Committee Reference: HIGHER ED. SUMMARY: Establishes the Early Diagnosis and Preventive Treatment (EDAPT) Program Fund, for the purpose of utilizing AB 38 Page 2 integrated systems of care to provide early intervention, assessment, diagnosis, a treatment plan, and necessary services for individuals with severe mental illness and children with severe emotional disturbance, as specified. The Senate amendments delete the Assembly approved version, and instead: 1)Establish the EDAPT Program Fund within the State Treasury, from which moneys from private or other sources may be deposited into the fund and used for purposes of the EDAPT Program. 2)Define the EDAPT Programs as programs that utilizes integrated systems of care to provide early intervention, 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. 3)Require, once the EDAPT Program Fund has reached or exceeded $1,200,000, the State Controller to distribute all of the moneys in the fund to the Regents of the University of California (UC) for the purpose of providing reimbursement to an 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 required services. 4)Require, upon acceptance of moneys from the EDAPT Program fund by the Regents of the UC, the Regents to report, on or after January 1, 2022, but before January 1, 2023, to the health committees of both houses of the Legislature information on the EDAPT Program, as specified. 5)Sunset the EDAPT Program and Program Fund on January 1, 2023. AB 38 Page 3 AS PASSED BY THE ASSEMBLY, this bill required the Legislative Analyst's Office to conduct an initial analysis to assess the need for a new campus of the California State University. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Ongoing administrative costs likely in the range of $75,000 to $150,000 per year over the life of the EDAPT program for the Department of Health Care Services to manage the EDAPT program and ensure that state funding is used for the allowed uses (General Fund (GF)). 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 (GF). Currently, the University of California, Davis (UCD) 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 UCD program (GF). COMMENTS: According to the author, this bill establishes the framework for the private and federal funding and studying of the EDAPT pilot program operated by the UC. This bill requires that UC report to the Legislature on the outcomes and cost effectiveness of a comprehensive mental health delivery system and early intervention in psychosis. Currently, the private health plan system lags far behind the county mental health system in providing comprehensive mental health care. Data produced through the UC and backed by the state will demonstrate to plans that a more robust range of services earlier in treatment is not only beneficial to those in care, but to the AB 38 Page 4 health plans as well. Rather than asking that the State mandate that plans cover services, this bill seeks to contribute to the research necessary for plans to make that decision for themselves, and provide it to the Legislature if action is necessary. The author states that the longer we wait for studies of EDAPT programs, the more Californians dealing with severe mental illness, along with their families and communities, will suffer without adequate care. The sponsor of this bill, the California Psychiatric Association (CPA), states that this bill addresses the vast gulf between the comprehensive array of mental health services available throughout public mental health system, and the relatively narrow range of benefits available for privately insured patients. Ample data from the National Institute of Mental Health (NIMH) collected for over a decade demonstrate an array of wrap around services necessary to stem deterioration before it become severe disability after an initial psychotic episode. CPA argues that the participation of managed health care organizations in programs like EDAPT is any formal way, not only within California but also nationally, is unknown. The UCD EADPT program was one of the original NIMH centers contributing to demonstrate the efficacy of early intervention. UCD's EDAPT Program accepts privately insured patients, but reimbursement to the program from private insurance is typically for a traditional array of services like psychiatrist visits, medications, and a therapist. Privately insured families then pay out of pocket for the remainder of the wrap around service that have been identified as effective by NIMH. With data demonstrating expensive repeat hospitalizations, as well as failure at school and/or work, deterioration in social relationships and alienation from their family, the CPA hopes to persuade health insurers that spending upfront for wraparound services not only improves beneficiaries health and mental health outcomes, but is ultimately less costly. Analysis Prepared by: Paula Villescaz / AB 38 Page 5 HEALTH / (916) 319-2097 FN: 0005000