BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 861    
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          |AUTHOR:        |Maienschein                                    |
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          |VERSION:       |May 12, 2015                                   |
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          |HEARING DATE:  |June 17, 2015  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Mental health: community-based services.

           SUMMARY  :  Requires the Department of Health Care Services (DHCS) to  
          submit an application for a specified federal competitive grant  
          for purposes of improving mental health services to Medi-Cal  
          beneficiaries, as specified. Requires DHCS to work with counties  
          and stakeholders, as specified, to identify the unmet need for  
          covered services and to estimate the number of individuals who  
          need housing assistance. Requires the competitive grant proposal  
          to include plans for counties to redirect current funds, as  
          specified, to provide housing for those with severe mental  
          illnesses.
          
          Existing law:
          Federal law
          1)Enacts the Patient Protection and Affordable Care Act (ACA) to  
            increase access to health care through a number of measures,  
            including expanding Medicaid eligibility, subsidizing  
            insurance premiums, and setting aside funds for health  
            promotion and disease prevention.
             
          2)Authorizes, in Section 223 of the Protecting Access to  
            Medicare Act (PAMA) of 2014 (P.L. 113-93), a two-year  
            demonstration program, to include up to eight states, that  
            creates criteria for certified community behavioral health  
            clinics (CCBHCs) and provides planning grants to develop  
            applications to participate in the demonstration program. 

          State law
          3)Establishes the Medi-Cal program, administered by DHCS, under  
            which qualified low-income persons receive health care  
            benefits. The Medi-Cal program is, in part, governed and  
            funded by the federal Medicaid provisions.







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          4)Establishes, under the terms of a federal Medicaid waiver, a  
            managed care program providing Medi-Cal specialty mental  
            health services for eligible low-income persons administered  
            through local county mental health plans under contract with  
            DHCS.

          This bill:
          1)Requires DHCS, if it is awarded the planning grant for the  
            purpose of improving mental health services furnished by  
            CCBHCs to Medi-Cal beneficiaries, to submit an application for  
            the subsequent competitive grant competition to be selected as  
            a participating state in the demonstration program authorized  
            under PAMA. 

          2)Requires DHCS, in planning to develop its proposal for the  
            competitive grant, to work with counties and other  
            stakeholders to identify the unmet need for the covered  
            services and to estimate the number of individuals who will  
            need housing assistance.

          3)Requires the competitive grant proposal to include plans for  
            counties to redirect a portion of current funds, which would  
            be made available during the demonstration program, to provide  
            increased housing opportunities for individuals with severe  
            mental illness.

           FISCAL  
          EFFECT  :  According to the Assembly Appropriations Committee,  
          this bill has minor and absorbable costs to DHCS to ensure a  
          grant application, if the department applies and meets the  
          criteria.  

           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |74 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Appropriations Committee:  |17 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Health Committee:          |19 - 0                      |
          |                                    |                            |
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          COMMENTS  :
          1)Author's statement. According to the author, in 2014, Congress  
            enacted PAMA, under which up to eight states will be selected  
            to have their federal share of costs for outpatient behavioral  
            health care for individuals with severe mental illnesses or  
            serious emotional disturbances increased to be equivalent to  
            the enhanced federal matching rate for the Children's Health  
            Insurance Program (CHIP).  The federal law would enable  
            successful states to nearly double federal funds to support  
            community mental health and Substance Use Disorder (SUD)  
            services with no additional costs to the state or county.  
            These are extremely important funds that California could use  
            to serve some its most vulnerable populations.

          2)Background. Federal law authorizes PAMA to establish a  
            demonstration program, to include up to eight states, that  
            creates criteria for CCBHCs, which are facilities designed to  
            serve individuals with serious mental illnesses and SUDs. PAMA  
            provides nearly $25 million that will be available to states  
            as planning grants to develop applications. PAMA also directs  
            the Secretary of the US Department of Health and Human  
            Services (USHHS) to award planning grants to states for the  
            development of demonstration proposals by January 1, 2016, and  
            to select states to participate in the demonstration program  
            by September 1, 2017. Section 223 of PAMA authorizes the USHHS  
            to:


               a)     Establish criteria that states will use to certify  
                 CCBHCs for a two-year demonstration program;
               b)     Provide guidance on the development of a Prospective  
                 Payment System (PPS) for payment of services provided by  
                 CCBHCs;
               c)     Award grants to states for planning purposes to  
                 develop proposals to participate in the demonstration  
                 program;
               d)     Select up to eight states to participate in the  
                 demonstration program;
               e)     Pay states participating in the demonstration  
                 program federal matching funds equivalent to the standard  
                 CHIP matching rate for services provided to currently  
                 enrolled Medicaid beneficiaries; and,
               f)     Evaluate the program and prepare annual reports to  
                 Congress.









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            As indicated on the Substance Abuse and Mental Health Services  
            Administration's (SAMHSA) Web site, states may submit  
            applications for the planning grants through August 5, 2015.  
            According to DHCS, the department will apply for the planning  
            grants.


          1)CCBHCs. SAMHSA is currently in the process of determining what  
            the eligibility criteria will be for states to certify CCBHCs.  
            The CCBHC demonstration program and the PPS are designed to  
            work within the scope of State Medicaid Plans and to apply  
            only to individuals who are Medicaid enrollees. According to  
            SAMHSA, this demonstration program provides an opportunity for  
            states to improve the behavioral health of their residents by  
            providing community-based mental health and SUD treatment, and  
            by helping to further integrate behavioral health with  
            physical health care, utilize evidence-based practices on a  
            more consistent basis, and improve access to high quality  
            care. According to SAMHSA, populations to be served are adults  
            with serious mental illness, children with serious emotional  
            disturbance, and those with long term and serious SUDs, as  
            well as others with mental illness and SUDs.
            
          2)National data on mental illness and homelessness. In the  
            "Current Statistics on the Prevalence and Characteristics of  
            People Experiencing Homelessness in the United States," last  
            updated in July 2011 by SAMHSA, data from 2010 shows that,  
            nationally, on a given night 407,966 individuals were homeless  
            in shelters, transitional housing programs, or on the streets  
            (not including those who were sleeping at the homes of family  
            or friends), and 109,812 individuals were chronically homeless  
            (a one percent decrease from the previous year). Of these  
            individuals, 26.2 percent had a severe mental illness, and  
            34.7 percent of adults had chronic substance use disorders.  
            Over the course of that year, data shows that a total of  
            1,593,150 individuals experienced homelessness.

          3)Related legislation. AB 847 (Mullin), would require DHCS to  
            apply to the Secretary of the USHHS for the PAMA federal  
            planning grant for the purpose of developing proposals to  
            improve mental health services provided by CCBHCs to Medi-Cal  
            beneficiaries. AB 847 is set to be heard in the Senate Health  
            Committee on June 17, 2015.

            AB 745 (Chau), would require the Governor to appoint an  








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            additional member to the Mental Health Services Oversight and  
            Accountability Commission in existing law who has experience  
            providing supportive housing to people with a severe mental  
            illness. AB 745 passed out of the Senate Health Committee on  
            June 10, 2015, with a 9-0 vote.
          
            AB 253 (Roger Hernández), would make specified changes to the  
            Mental Health Services Act (MHSA), the Veterans Housing and  
            Homeless Prevention Bond Act of 2014, and mental health plan  
            requirements. AB 253 is pending in this committee.

          4)Prior legislation. AB 1929 (Chau, Chapter 674, Statutes of  
            2014), allows county mental health departments to deposit MHSA  
            funding with the California Housing Finance Agency (CalHFA),  
            as specified, and allows CalHFA to use those funds for special  
            housing needs for those with mental illness. Requires counties  
            to dedicate funds to provide housing assistance to those with  
            serious mental illness who are homeless or to the mentally ill  
            at risk of being homeless.

            AB 2287 (Monning, 2010), would have required the California  
            Health and Human Services Agency to direct the appropriate  
            state departments within the agency to apply for community  
            transformation grants under the ACA.  AB 2287 died in Senate  
            Appropriations Committee.

          5)Support. Supporters of the bill, including behavioral health  
            and disability advocates, argue that the savings to counties  
            will free up Proposition 63 funds and other county mental  
            health funds that are now expended on hospital care. The  
            Western Center on Law and Poverty states that homeless people  
            often visit emergency departments for conditions that could be  
            controlled and contained if the people had access to safe  
            housing.
          
           SUPPORT AND OPPOSITION  :
          Support:  The Steinberg Institute (sponsor)
                    California Chapter of the American College of  
                    Emergency Physicians
                    Disability Rights California
                    Easter Seals
                    Western Center on Law and Poverty
          
          Oppose:   None received.









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