BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 858 (Wood) - Medi-Cal: federally qualified health centers and rural health clinics ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 1, 2015 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 27, 2015 Bill Summary: AB 858 would add marriage and family therapists (MFTs) to the list of health care providers that qualify for face-to-face encounter payments from the Medi-Cal program to federally qualified health centers and rural health clinics. Fiscal Impact: One-time costs, likely in the low millions to recalculate the prospective payment system (PPS) rate for clinics that are providing marriage and family therapist services or wish to add those services (General Fund and federal funds). The bill requires clinics that are currently including marriage and family therapist services in the costs used to calculate their PPS rate to seek a recalculation of the rate to allow the clinic to bill for face-to-face visits. The process for AB 858 (Wood) Page 1 of ? recalculating a PPS rate requires a detailed review of utilization and expenditures by clinics. For example, assuming that the cost of performing such a review is about $10,000 and that 500 clinics seek a recalculation, the administrative costs to the Department of Health Care Services would be about $5 million. No significant increase in costs is expected for MFT services in eligible clinics. Under the current system for calculating the PPS rate paid by Medi-Cal to federally qualified health centers and rural health clinics, the total amount of eligible services (including mental health services) provided to Medi-Cal beneficiaries is divided by the number of eligible face-to-face visits (e.g. a visit with a physician or clinical psychologist). Because the bill requires a recalculation of the PPS to account for the fact that MFTs would be eligible for face-to-face billing before a clinic can bill for such an encounter, the Medi-Cal program is not expected to pay more for services currently being provided. (In other words, a clinic employing MFTs would be able to bill for more face-to-face encounters, but the PPS rate would be lower to account for those visits.) Author Amendments: Would make a technical correction. -- END --