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
          
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          |Version: July 1, 2015           |Policy Vote: HEALTH 9 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 27, 2015   |Consultant: Brendan McCarthy    |
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          *********** 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.


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