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