BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 168 --------------------------------------------------------------- |AUTHOR: |Maienschein | |---------------+-----------------------------------------------| |VERSION: |June 20, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |June 29, 2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Reyes Diaz | --------------------------------------------------------------- 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: AB 168 (Maienschein) Page 2 of ? 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 : ----------------------------------------------------------------- |Assembly Floor: |Not relevant | |------------------------------------+----------------------------| |Assembly Appropriations Committee: |Not relevant | |------------------------------------+----------------------------| |Assembly Health Committee: |Not relevant | | | | ----------------------------------------------------------------- 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 AB 168 (Maienschein) Page 3 of ? 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 AB 168 (Maienschein) Page 4 of ? 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 AB 168 (Maienschein) Page 5 of ? Oppose: None received -- END --