BILL ANALYSIS Ó AB 858 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 858 (Wood) - As Introduced February 26, 2015 SUBJECT: Medi-Cal: federally qualified health centers and rural health clinics. SUMMARY: Allows federally qualified health centers (FQHCs) and Rural Health Center (RHCs) to be reimbursed a per visit Medi-Cal payment under the prospective payment system (PPS), for multiple visits by a patient with a single or different health care professional on the same day at a single location. Specifically, this bill: 1)Allows clinics to obtain reimbursement for two visits in the same day when a patient has a medical visit, as defined, and another health visit on the same day. Defines "another health visit" is a face-to-face encounter between a clinic patient and a clinical psychologist, licensed clinical social worker, dentist, dental hygienist, or registered dental hygienist in alternative practice. 2)Allows clinics to obtain reimbursement for two visits in the same day when a patient has had an illness or injury requiring additional diagnosis or treatment. AB 858 Page 2 3)Requires FQHCs and RHCs to apply to the Department of Health Care Services (DHCS) for an adjustment of their PPS rate by January 1, 2017. 4)Requires DHCS to submit a state plan amendment to the federal Centers for Medicare and Medicaid Services (CMS) for approval of the changes contained in this bill. EXISTING LAW: 1)Establishes the Medi-Cal program to provide comprehensive health benefits to low-income persons. 2)Establishes a statutory structure for Medi-Cal payments being made under the PPS. These payments are for services provided by FQHCs and RHCs on a per-visit basis with rates determined prospectively. Federal law requires states to use a PPS system to pay clinics. 3)Identifies those services that may be reimbursed as services identified in federal law as covered benefits for FQHCs and RHCs and requires FQHCs and RHCs to be reimbursed on a per-visit basis with rates determined prospectively. AB 858 Page 3 4)Defines visit as a face to face encounter with a physicians, physician assistant, nurse practitioner, certified nurse midwife, clinical psychologist, licensed clinical social worker, visiting nurse, osteopath, podiatrist, dentist, dental hygienists, optometrist, chiropractor, comprehensive perinatal services practitioner, or adult day health care center. Authorizes other providers if identified in the state plan. 5)Allows only one visit per day to be reimbursed by Medi-Cal, except for a subsequent visit by a patient to a dental provider FISCAL EFFECT: This bill has not been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, one in seven Californians are served by clinics and with the increased number of Californians eligible for Medi-Cal, this number is likely to increase. The author cites research showing that within a primary care setting, up to 26% of patients have some mental disorder and that adults with mental health needs are 1.5 times more likely to have a chronic condition such as high blood pressure, heart disease, or asthma. Yet currently clinics cannot be reimbursed for a mental health visit on the same day that they are reimbursed for a medical visit. AB 858 Page 4 The author argues that we need to adopt policies that encourage integrated care and invest in the long-term health of Californians and continuing to view various aspects of health care in silos does a disservice to patients who should be treated in a more holistic manner. California has recognized that oral health services are a critical part of overall health and has acknowledged that fact by adopting a payment policy in clinics that allows for a dental visit to be reimbursed when on the same day as a medical visit. The author concludes that given the statistics on the connection between physical health and mental health, we need to adopt a similar policy in this area. 2)BACKGROUND. FQHCs and RHCs serve a significant portion of the uninsured and underinsured in California. They are open-door providers that treat patients on a sliding fee scale basis and make their services available regardless of a patient's ability to pay. Currently, there are approximately 600 FQHCs and 350 RHCs in California. All FQHCs, and a majority of the RHCs, either are non-profit community clinics or government entities. Because clinics are safety net providers, their continued survival depends heavily on the stability and adequacy of revenues from the Medi-Cal program. FQHCs and RHCs are paid by Medi-Cal on a "per visit" basis in an amount equal to the clinic's cost of delivering services. Essentially, DHCS calculates the annual cost of care provided by each clinic and divides the total by the number of visits to determine a per visit rate. Community clinics and health centers provide health care to 14% Californians. This figure is even higher in rural or remote areas that struggle to attract and retain health care providers. Mental health and substance abuse services are part of the essential health care benefits under the Patient Protection and Affordable Care Act. As such they are a part of Medi-Cal. Along with the expansion of these benefits, the AB 858 Page 5 expansion of the Medi-Cal program overall has increased the number of beneficiaries to over 12 million placing even greater demands on Medi-Cal providers. 3)SUPPORT. The California Primary Care Association (CPCA), the sponsor, states that clinics have been working to integrate behavioral health services and were recognized as leaders in this effort. However, they note the results from a University of California, Los Angeles (UCLA) study which suggests that the current Medi-Cal rules frustrate their efforts. Medi-Cal will not reimburse a patient's visit to a primary care provider and a visit to a mental health provider on the same day. CPCA explains the results of a UCLA study which found that 70% of behavioral health conditions are first diagnosed in the primary care setting. The rule against reimbursing for two visits in one day requires many vulnerable patients to navigate the complexities of two separate systems of care. CPCA states that same day reimbursement is allowed for medical and dental services, but mental health services are excluded, as the state has not adopted this option, even though federal law allows reimbursement for same day visits. Supporters argue that there is a high correlation between serious mental illness and high rates of physical health problems which creates a need for integrated care on the same day. 4)RELATED LEGISLATION. AB 690 (Wood) adds marriage and family therapist to the list of health care providers that qualify for a face-to-face encounter with a patient at a FQHC or RHC for purposes of a per visit Medi-Cal payment PPS. AB 690 passed this committee on April 7 2015, by an 18-0 vote and is now pending hearing in the Assembly Appropriation Committee. 5)PREVIOUS LEGISLATION. SB 260 (Steinberg) of 2007 was substantially similar to this bill. SB 260 was vetoed by Governor Schwarzenegger who cited concerns about the fiscal impact of the bill. AB 858 Page 6 6)COMMITTEE AMENDMENTS. The bill contains conflicting provisions on when the department should seek approval from CMS. The following should be deleted as the date falls too soon after enactment for DHCS to be able to meet, leaving a required date of March 30, 2016 for DHCS to have sought all necessary federal approvals. Page 10, beginning line 34:(4) The department shall, by January 15, 2016, submit a state plan amendment to the federal Centers for Medicare and Medicaid Services reflecting the changes described in this subdivision.REGISTERED SUPPORT / OPPOSITION: Support California Primary Case Association (sponsor) Association of California Healthcare Districts California Chapter, American College of Emergency Physicians California Medical Association California Psychological Association AB 858 Page 7 Council of Community Clinics Opposition None on file. Analysis Prepared by:Roger Dunstan / HEALTH / (916) 319-2097