BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AB 168|
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                                    THIRD READING


          Bill No:  AB 168
          Author:   Maienschein (R)
          Amended:  8/17/16 in Senate
          Vote:     21  

           SENATE HEALTH COMMITTEE:  8-0, 6/29/16
           AYES:  Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,  
            Pan, Roth
           NO VOTE RECORDED: Wolk

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  78-0, 1/27/16 (Consent) - See last page for  
            vote

           SUBJECT:   Mental health: community-based services


          SOURCE:    Author

          DIGEST:   This bill requires the Department of Health Care  
          Services, if chosen to participate in a federal demonstration  
          program, as specified, to provide an update to the Legislature,  
          as specified, by March 1, 2017.


          Senate Floor Amendments on 8/17/16 delete the requirement for  
          the Department of Health Care Services (DHCS) to submit a report  
          and instead require DHCS to provide an update to the  
          Legislature, to the extent that specified information is  
          available.


          ANALYSIS:  









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          Existing federal law:


          1)Enacts the Patient Protection and Affordable Care Act 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. 


          Existing state law:


          1)Establishes the Medi-Cal program, administered by 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.


          2)Requires DHCS to develop a proposal for the time-limited  
            demonstration program.


          This bill:  


          1)Requires DHCS, if it is chosen to participate in the federal  
            demonstration program, to provide an update to the Legislature  
            by March 1, 2017, that includes, to the extent the information  
            is available: 


             a)   Names of the participating counties;








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             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.


          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 (USSHHS) 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:


          1)Establish criteria that states will use to certify CCBHCs for  
            a two-year demonstration program;










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          2)Provide guidance on the development of a Prospective Payment  
            System for payment of services provided by CCBHCs;


          3)Award grants to states for planning purposes to develop  
            proposals to participate in the demonstration program;


          4)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,


          5)Evaluate the program and prepare annual reports to Congress.


          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 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.


          Comments


          Author's statement. According to the author, under PAMA, eight  








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          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 update required by this bill  
          will keep the Legislature informed and promote 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.


          Prior Legislation


          AB 847 (Mullin, Chapter 6, Statutes of 2016) requires DHCS to  
          develop a proposal to the USSHHS 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), which was substantially similar to  
          this bill, 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.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No









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          SUPPORT:   (Verified8/17/16)


          California Chapter of the American College of Emergency  
          Physicians
          California Council of Community Behavioral Health Agencies
          Jewish Family Service
          Mental Health America in California
          Western Center on Law and Poverty


          OPPOSITION:   (Verified8/17/16)


          None received


          ARGUMENTS IN 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  
          update required in this bill can inform legislators and other  
          about ways to expand the innovative approaches that are  
          developed for the demonstration program.


           ASSEMBLY FLOOR:  78-0, 1/27/16
           AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,  
            Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,  
            Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez,  
            Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  








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            Wilk, Williams, Wood, Atkins
           NO VOTE RECORDED: Mathis



          Prepared by:  Reyes Diaz / HEALTH / (916) 651-4111
          8/18/16 16:57:27


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