BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 858


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          ASSEMBLY THIRD READING


          AB  
          858 (Wood)


          As Amended  May 28, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Health          |16-0  |Bonta, Maienschein, |                      |
          |                |      |Burke, Chávez,      |                      |
          |                |      |Chiu, Gomez,        |                      |
          |                |      |Gonzalez, 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,       |                      |








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          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
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          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 and add marriage  
          and family therapist (MFT) 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 under PPS.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)If this bill increases access to mental health services in  
            Medi-Cal by incentivizing clinics to provide more mental health  
            visits, it could result in cost pressure to Medi-Cal to fund  
            additional visits, potentially in the millions of dollars  
            (General Fund (GF)/federal funds).  
          2)If 1,000 clinics submit for a recalculation of their rate, it  
            would take DHCS about $10 million (GF /federal funds) in staff  
            time to process the requests, likely over a period exceeding a  
            year or two.  The average cost to do a rate recalculation is  
            $10,000.  Currently, clinics can submit on a voluntary basis if  
            the cost or scope of services they offer changes significantly. 


          3)Overall, there should not be a Medi-Cal cost impact to allowing  
            same-day mental health visits or visits with an MFT to be  
            separately billed, if rates are recalculated as envisioned in  
            this bill. However, the recalculation could have unknown overall  
            cost impacts on Medi-Cal, since additional, unrelated factors  








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            may have changed from the last PPS rate calculation.


          COMMENTS:  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.  The author adds that by adding MFT to the list of  
          PPS billable providers, this bill brings parity throughout the  
          delivery system in the ability to utilize all qualified mental  
          health providers regardless of how or where you are receiving  
          treatment.  The author notes that as of February 2012, there were  
          19,009 licensed clinical social workers and 16,228 licensed  
          psychologists; as well as 31,865 MFTs in California.  Allowing  
          full access to the entire population of qualified mental health  
          providers for all aspects of the health care delivery system will  
          help to meet the increased demands of the Medi-Cal population.  


          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.









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          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 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.  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.  The CPCA sponsored a bill, AB 690 (Wood) of the  
          current legislative session, that contained the provisions  
          regarding MFTs that were subsequently amended into this bill.  AB  
          690 was held on the Assembly Appropriations Suspense File.  CPCA  
          argues by adding MFTs to the list of PPS billable providers will  
          help solve existing gaps in workforce capacity by providing FQHCs  
          and RHCs with an adequate source of funding for their employment  
          and will help to meet the demand for mental health services in the  
          public health setting.  




          Opposition.  The National Association of Social Workers-California  
          Chapter (NASW-CA) opposes provisions of this bill that were  
          previously in AB 690.  They oppose adding MFTs because they  
          believe there is a sufficient workforce of social workers and only  
          social workers have the training and skills necessary to treat  
          this community.  NASW-CA maintains these clinics serve a  
          population that is very diverse and in poverty and while both  
          MFT's and social workers have mental health training, only social  
          workers are properly trained to provide a full range of services  
          to this community.  


          Analysis Prepared by:                                               








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                          Roger Dunstan / HEALTH / (916) 319-2097  FN:  
          0000820