BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  AB 861
          Author:   Maienschein (R)
          Amended:  5/12/15 in Assembly
          Vote:     21  

           SENATE HEALTH COMMITTEE:  9-0, 6/17/15
           AYES:  Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,  
            Pan, Roth, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/27/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           ASSEMBLY FLOOR:  74-0, 5/22/15 (Consent) - See last page for  
            vote

           SUBJECT:   Mental health: community-based services


          SOURCE:    The Steinberg Institute


          DIGEST:  This bill 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. This bill  
          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. This bill 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.









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          ANALYSIS:   


          Existing 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. 

          Existing state law:

          1)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.

          2)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  







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            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.


          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 U.S. 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  







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               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.

            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,  







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            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% had a severe mental illness, and 34.7% of  
            adults had chronic SUDs. Over the course of that year, data  
            shows that a total of 1,593,150 individuals experienced  
            homelessness.


          Related Legislation


          AB 847 (Mullin) requires 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 pending in the  
          Senate Appropriations Committee.

          AB 745 (Chau) requires the Governor to appoint an 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 is on Third Reading on the Senate Floor.
          
          AB 253 (Roger Hernández) makes 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 the Senate Transportation and  
          Housing Committee.


          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.







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          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 the Senate  
          Appropriations Committee.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee, one-time costs  
          likely from $1 million to $2 million to develop an application  
          for the demonstration grant program by DHCS (federal funds).


          SUPPORT:   (Verified8/31/15)


          The Steinberg Institute (source)
          California Chapter of the American College of Emergency  
                    Physicians
          Disability Rights California
          Easter Seals
          Western Center on Law and Poverty


          OPPOSITION:   (Verified8/31/15)


          None received


          ARGUMENTS IN SUPPORT:     Supporters of this bill, including  
          behavioral health and disability advocates, argue that the  
          savings to counties will free up MHSA 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.

          ASSEMBLY FLOOR:  74-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  







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            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Alejo, Jones, O'Donnell, Olsen, Waldron,  
            Weber

          Prepared by:Reyes Diaz / HEALTH / 
          8/31/15 12:50:21


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