BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 168    
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          |AUTHOR:        |Maienschein                                    |
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          |VERSION:       |June 20, 2016                                  |
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          |HEARING DATE:  |June 29, 2016  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Mental health: community-based services

           SUMMARY  :  Requires the Department of Health Care Services, if chosen to  
          participate in a federal demonstration program, as specified, to  
          report specific information to the Legislature by March 1, 2017.

          Existing law:
          Federal law
          1)Enacts the Patient Protection and Affordable Care Act (ACA) to  
            increase access to health care through a number of measures,  
            including expanding Medicaid eligibility, subsidizing  
            insurance premiums, and setting aside funds for health  
            promotion and disease prevention.

          2)Authorizes, in Section 223 of the Protecting Access to  
            Medicare Act (PAMA) of 2014 (P.L. 113-93), a time-limited  
            demonstration program that creates criteria for certified  
            community behavioral health clinics (CCBHCs) and provides  
            planning grants to develop applications to participate in the  
            demonstration program. 

          State law
          3)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income individuals receive health care benefits.  
            The Medi-Cal program is, in part, governed and funded by  
            federal Medicaid provisions.
          
          This bill:  
          1)Requires DHCS, if it submits a proposal and is chosen to  
            participate in the federal demonstration program, to provide a  
            report to the Legislature by March 1, 2017, that includes: 








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               a)     Names of the participating counties;
               b)     Estimated amount of additional funding each county  
                 is expected to receive;
               c)     Proposed uses of the additional funds and county  
                 funds no longer required to be used as the federal match;
               d)     A description of improved partnerships with veterans  
                 organizations, primary care providers, health plans,  
                 educational agencies, and other organizations that the  
                 demonstration program includes; and,
               e)     Other identified benefits from the demonstration  
                 program funding and planning process, and recommendations  
                 on any components of the demonstration program that could  
                 be extended to other counties.

          1)Makes the reporting requirement inoperative on March 1, 2021.

           FISCAL  
          EFFECT  : This bill has not been analyzed by a fiscal committee. 
           
          PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |Not relevant                |
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          |Assembly Appropriations Committee:  |Not relevant                |
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          |Assembly Health Committee:          |Not relevant                |
          |                                    |                            |
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          COMMENTS  :
          1)Author's statement. According to the author, under PAMA, eight  
            states will be selected to have their federal share of costs  
            increased to 65% for two years for outpatient behavioral  
            health care for individuals with severe mental illnesses or  
            serious emotional disturbances. This federal funding would  
            free up substantial funds in participating counties that are  
            currently being used to match federal funds. The money that is  
            currently being used to match federal funds would be available  
            to be used to meet the mental health service and housing needs  
            of those individuals who are not currently receiving the  
            behavioral health care that they need. The report required by  
            this bill will keep the legislature informed and promote  








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            transparency in regards to how the additional funds will be  
            used, and how the realized savings could best be utilized to  
            target the vulnerable population this federal grant is  
            intended to help. The information will enable the state to  
            develop better programs to target the needs of these  
            individuals and utilize funding and other resources in the  
            most efficient manner.
            
          2)Background. Federal law authorizes PAMA to establish a  
            demonstration program that creates criteria for CCBHCs, which  
            are facilities designed to serve individuals with serious  
            mental illnesses and substance use disorders (SUDs). PAMA  
            provides nearly $25 million that will be available to states  
            as planning grants to develop applications. PAMA also directs  
            the United States Secretary of Health and Human Services  
            (USHHS) to award planning grants to states for the development  
            of demonstration program proposals that are due by October 31,  
            2016, and to select states to participate in the demonstration  
            program no later than December 31, 2016. Section 223 of PAMA  
            authorizes the USSHHS to:

               a)     Establish criteria that states will use to certify  
                 CCBHCs for a two-year demonstration program;
               b)     Provide guidance on the development of a Prospective  
                 Payment System for payment of services provided by  
                 CCBHCs;
               c)     Award grants to states for planning purposes to  
                 develop proposals to participate in the demonstration  
                 program;
               d)     Pay states participating in the demonstration  
                 program federal matching funds equivalent to the standard  
                 Children's Health Insurance Program matching rate for  
                 services provided to currently enrolled Medicaid  
                 beneficiaries; and,
               e)     Evaluate the program and prepare annual reports to  
                 Congress.

          3)CCBHCs. The federal Substance Abuse and Mental Health Services  
            Administration (SAMHSA) developed eligibility criteria for  
            states to certify CCBHCs, based on a review of selected state  
            Medicaid Plans, standards for Federally Qualified Health  
            Centers and Medicaid Health Homes, and quality measures  
            currently in use by states. According to SAMHSA's Web site,  
            the criteria are intended to extend quality and to improve  
            outcomes of the behavioral health care system within the  








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            authorities of state regulations, statutes, and state Medicaid  
            Plans; establish a basic level of services at which the CCBHCs  
            should, at a minimum, operate; and allow states the  
            flexibility in determining how to implement the criteria in a  
            manner best addressing the needs of the population being  
            served. The criteria are designed to encourage states and  
            CCBHCs to further develop their abilities to offer behavioral  
            health services that comport with current best practices.  
            Populations to be served are adults with serious mental  
            illness, children with serious emotional disturbance, and  
            those with long-term and serious SUDs, as well as others with  
            mental illness and SUDs.

          4)Prior legislation. AB 847 (Mullin, Chapter 6, Statutes of  
            2016), requires DHCS to develop a proposal for the United  
            States Secretary of Health and Human Services to be selected  
            as a participating state in the time-limited demonstration  
            program for mental health services to be provided by CCBHCs to  
            Medi-Cal beneficiaries. Appropriates $1 million from Mental  
            Health Services Act funds for DHCS to develop the proposal.

            AB 861 (Maienschein, 2015), was substantially similar to this  
            bill. AB 861 was vetoed by Governor Brown, who stated that the  
            bill was premature because the state had not been awarded any  
            federal grants or approved as one of the participating states  
            for the demonstration program.

          5)Support. Supporters state that the federal demonstration  
            program represents state-of-the-art approaches to provide  
            better care, as well as improved payment models, performance  
            outcome incentives, care coordination, and additional funding  
            that can support services not otherwise reimbursable.  
            Supporters state that 22 counties have expressed letters of  
            interest to participate in the program, and that the report  
            required in this bill can inform legislators and other about  
            ways to expand the innovative approaches that are developed  
            for the demonstration program.

           SUPPORT AND OPPOSITION  :
          Support:  California Chapter of the American College of  
                    Emergency Physicians
                    California Council of Community Behavioral Health  
                    Agencies
                    Jewish Family Service
                    Mental Health America in California








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          Oppose:   None received
          

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