BILL ANALYSIS Ó AB 187 Page 1 ASSEMBLY THIRD READING AB 187 (Bonta) As Amended May 28, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Health |16-0 |Bonta, Maienschein, | | | | |Bonilla, Burke, | | | | |Chávez, Chiu, | | | | |Gomez, Lackey, | | | | |Nazarian, | | | | |Patterson, | | | | |Ridley-Thomas, | | | | |Rodriguez, | | | | |Santiago, Thurmond, | | | | |Waldron, Wood | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | AB 187 Page 2 | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Extends the sunset date on the prohibition on incorporating California Children's Services (CCS) covered services in a Medi-Cal managed care (MCMC) contract for one year to January 1, 2017. EXISTING LAW: 1)Establishes the Medi-Cal Program, administered by the Department of Health Care Services (DHCS), which provides comprehensive health benefits to low-income children, their parents or caretaker relatives, pregnant women, elderly, blind or disabled persons, nursing home residents, and refugees who meet specified eligibility criteria. 2)Establishes the CCS Program to provide specified medical care and therapy services to children with eligible conditions. 3)Prohibits, until January 1, 2016, CCS covered services from being incorporated into MCMC contracts, except in county organized health systems plans originally established. FISCAL EFFECT: According to the Assembly Appropriations Committee, there is no direct increase in state costs, as this continues the current practice of "carving out" CCS services. This bill prohibits the incorporation of CCS services into managed care contracts for one year. It is unlikely to have a fiscal impact as compared to the status quo, as a current stakeholder process is underway to redesign the CCS delivery system and it is unlikely that children would enroll in managed care before January AB 187 Page 3 1, 2017. COMMENTS: Originally established in 1927, the CCS Program provides diagnostic and treatment services, medical case management, and physical and occupational therapy services to children under age 21 with CCS-eligible medical conditions. Some examples of CCS-eligible conditions include chronic medical conditions such as cystic fibrosis, hemophilia, cerebral palsy, heart disease, cancer, traumatic injuries, and certain infectious diseases. CCS also provides medical therapy services that are delivered at public schools. Mandatory enrollment of families and children into a MCMC full risk plan was authorized as part of the state budget of 1992. In implementing this mandatory enrollment, the former Department of Health Services (now DHCS) released a strategic plan in 1993. With regard to CCS, the Strategic Plan stated that the department desired Medi-Cal children participating in managed care to continue to have direct access to the level of highly specialized services provided under the CCS Program. In order to assure that CCS-eligible children received the benefit of fully-coordinated care, it would be the responsibility of the managed care plan to identify children with CCS-eligible conditions, arrange for referral to the local CCS office and coordinate the provision of care. CCS services would continue to be provided through the CCS program while children would be mandatorily enrolled in a health plan in the counties covered by the managed care expansion for purposes of receiving primary care and other services unrelated to the conditions being treated by the CCS Program. Consistent with the Strategic Plan, SB 1371 (Bergeson), Chapter 917, Statutes of 1994, was enacted to provide that CCS-covered services, for CCS-eligible children, would not be incorporated into managed care, termed a "carve out" and would be provided and paid for on a fee-for service basis through the CCS Program for three years. The carve out has been extended repeatedly since AB 187 Page 4 then, usually for three or four year periods. According to the Children's Specialty Care Coalition, CCS carve-out has been extended repeatedly to protect access to the specialty care for this vulnerable population. Recently, DHCS, in its effort to strengthen the program, assembled the CCS Redesign Stakeholder Advisory Board (RSAB). The RSAB is composed of stakeholders including the Children's Specialty Care Coalition to assess the CCS program in its current state and develop a framework for a new model of care going forward. The development and implementation of any new model will take time, and must be phased in slowly. The Children's Specialty Care Coalition believes that this bill is necessary to ensure the care that children receive through CCS is not disrupted, while efforts are underway by DHCS and RSAB to explore new ways to enhance delivery of care. This bill has no known opposition. Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097 FN: 0000848