BILL ANALYSIS Ó AB 1018 Page 1 Date of Hearing: April 21, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 1018 (Cooper) - As Amended April 13, 2015 SUBJECT: Medi-Cal: Early and Periodic Screening, Diagnosis, and Treatment (EPSDT). SUMMARY: Requires the Department of Health Care Services (DHCS) to allow county mental health plans (MHPs) to contract with local educational agencies (LEAs) to provide services for Medi-Cal eligible pupils. Specifically, this bill: 1)Requires DHCS to allow county MHPs to contract with LEAs to provide EPSDT services to eligible students. EPSDT services are federally mandated services and benefits offered by Medi-Cal for children. 2)Requires DHCS to allow the MHP to obtain federal financial participation (FFP) for nonpublic agencies under contract with the LEA to provide EPSDT services if the LEA does not have a contract with the county MHP. 3)Requires LEAs to pay the nonfederal share of EPSDT expenditures in order to receive FFP. 4)Specifies that county MHPs may contract for, and nonpublic agencies may receive, federal funds for the following services: AB 1018 Page 2 a) Mental health assessments; b) Targeted case management services; c) Behavioral services; d) Mental health, social work, and counseling services; e) Individual and group services; f) Crisis intervention; g) Day treatment; h) Residential treatment; and, i) Medication support services. 5)Requires DHCS to examine methodologies for increasing LEA participation in the Medi-Cal program so that schools can meet the educationally related healthcare needs of their students, including simplifying the claiming processes for Medi-Cal billing to the extent possible. 6)Requires DHCS to seek any necessary Medi-Cal state plan or waiver amendments to implement this bill and to undertake any and all necessary activities to obtain federal funding for services provided by LEAs or entities an LEA contracts with for services. EXISTING LAW: 1)Provides for the Medi-Cal program, administered by DHCS, under which eligible low-income individuals receive health care services subject to state and federal laws and funding. 2)Establishes the Medi-Cal EPSDT program for eligible AB 1018 Page 3 individuals under 21 years. 3)Defines LEAs as a school district, a county office of education, a nonprofit charter school participating as a member of a special education local plan area, or a special education local plan area and allows LEAs to provide and bill for Medi-Cal services provided to students receiving special education services on Medi-Cal (generally, special education students). 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 MHPs under contract with the state. FISCAL EFFECT: This bill has not yet been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, this bill will provide LEAs and Special Education Local Plan Areas (SELPAs) with direct access to EPSDT funding for healthcare services, including mental health and trans-disciplinary assessments, both as an equitable funding mechanism and as an incentive for schools to intervene early before at-risk children show signs of failing. These vulnerable students are often trauma exposed, chemically exposed, autistic, developmentally challenged, and children stressed daily by impoverishment. The author states that this bill will allow these students to receive specifically targeted services in a timely manner. 2)BACKGROUND. Schools are a main provider of mental health services for children in California. The federal Individuals with Disabilities Education Act (IDEA) was adopted in 1975 to AB 1018 Page 4 guarantee children with disabilities a right to public education in the least restrictive setting. In California, the federal IDEA mandate to provide special education services is administered by local school districts and local education agencies. Special education students may be eligible for health care services, including mental health services, in specific IDEA disability categories. Mental health services provided to special education students include counseling and guidance, psychological services, parental counseling and training, and residential placement, among others. a) Section 1915(b) Medi-Cal Specialty Mental Health Services Waiver. Specialty Medi-Cal mental health services are provided under the terms of the federal Medicaid Medi-Cal Specialty Mental Health Services Consolidation 1915(b) waiver program. The waiver established a managed care program for specialty mental health services separate from the overall Medi-Cal program. Medi-Cal beneficiaries must receive specialty mental health services though county-operated MHPs. County MHPs provide services directly or through contracts in the local community using a combination of county funds, realignment revenues, and Mental Health Services Act funds. Counties pay for services locally, incurring Certified Public Expenditures, which the state then uses as the state match to claim federal Medicaid reimbursement and the state, in turn, returns the federal funds to the county MHPs. The Medi-Cal Specialty Mental Health Services Consolidation waiver has been in place since the mid-1990s and was just submitted for renewal by DHCS to the Centers for Medicare and Medicaid Services for a new five-year term, from July 1, 2015, through June 30, 2020. b) Individual Education Plans (IEPs). Prior to 2011, special education students who had an severe emotional AB 1018 Page 5 disturbance condition documented in their IEPs were referred by their schools to county mental health agencies for treatment, as called for under AB 3632 (Willie Brown), Chapter 26, Statutes of 1984. Funding for AB 3632-mandated services became an ongoing financial struggle between the state and counties, with counties accusing the state of not fully reimbursing them for costs associated with providing these services. In 2011, the Legislature repealed the state mandate on county mental health agencies to provide IDEA-related mental health services and shifted this financial responsibility to the California Department of Education (CDE). Local education agencies and local county MHPs were required to develop new agreements defining agency responsibilities that reflected the changes in state law. MHPs remain responsible for providing EPSDT services for students who are Medi-Cal beneficiaries with IDEA-related individualized education, if they meet medical necessity criteria. c) EPSDT. EPSDT is a Medi-Cal benefit for individuals under the age of 21 who have full-scope Medi-Cal eligibility. This benefit allows for periodic screenings to determine health care needs and based upon the identified health care need and diagnosis, treatment services are provided. EPSDT services include all services otherwise covered by Medi-Cal and EPSDT beneficiaries can receive additional medically necessary services. EPSDT mental health services are Medi-Cal services that correct or improve mental health problems that have been determined by a physician, psychologist, counselor, social worker or other health or social services provider. EPSDT provides eligible children access to a range of mental health services that include, but are not limited to: i) Mental health assessment; ii) Collateral contracts; AB 1018 Page 6 iii) Therapy; iv) Rehabilitation; v) Mental health services; vi) Medication support services; vii) Day rehabilitation; day treatment intensive; viii) Crisis intervention/stabilization; ix) Targeted case management; and, x) Therapeutic behavioral services. 3)SUPPORT. The Elk Grove Unified School District SELPA, the California School Boards Association and others state in support that this bill will allow LEAs to provide mental health services for Medi-Cal eligible students under the federal EPSDT program. Prior to 2012, county mental health agencies were able to access Medi-Cal reimbursement through county managed care plans seeking reimbursement from the DHCS who has direct access to the federal Medi-Cal funding for related services such as the EPSDT. Unfortunately, when the state shifted the responsible agency for mental health services for students with IEPs (from county mental health to schools), the state did not address the issue of how school districts could access or seek reimbursement directly from Medi-Cal and the federal government for related services under the EPSDT program. This bill would allow LEA to access EPSDT program Medi-Cal reimbursements through county MHPs. It is critical that LEAs have access to these additional Medi-Cal dollars to help serve the needs of their pupils. Unfortunately, there is no state policy or direction on how a local education agency can seek direct access to the Medi-Cal funding for the EPSDT program through county managed care. AB 1018 Page 7 Instead, it is up to each individual LEA or SELPA to negotiate directly with their county mental health program on whether this option would work in their area. The county mental health program determines at the local level whether they want the LEA or SELPA to be vendorized or certified to provide and bill Medi-Cal. The Coalition for Adequate Funding for Special Education states that this bill would allow school agencies to access EPSDT program Medi-Cal reimbursements through county MHPs. These additional funds will be used to help ensure that the mental health needs of these students will be met and closes the loophole that currently prevents school agencies from applying directly to the federal government for reimbursement. 4)OPPOSITION. The California Council of Community Mental Health Agencies states in opposition that this bill would require the state to seek federal approval to expand the scope of the school Medi-Cal billing option for LEAs to provide all services covered by the EPSDT county mental health program. According to the opposition, this is the wrong approach to this issue, as it ignores the need for a partnership between counties and schools. Moreover, it is not likely to be successful in getting federal approval as it is inconsistent with the managed care approach of the Medi-Cal county mental health system. The opposition states that a better approach is to ensure that counties fulfill their responsibilities to provide services to Medi-Cal enrolled students under the EPSDT program and partner with schools to identify and serve all youth who may need such services. 5)RELATED LEGISLATION. AB 1018 Page 8 a) AB 1025 (Thurmond) requires CDE to establish a three-year pilot program to encourage inclusive practices that integrate mental health, special education, and school climate interventions following a multitiered framework. AB 1025 is pending in the Assembly Education Committee. b) AB 1133 (Achadjian) makes technical changes to existing law regarding grants to LEAs to pay the state share of costs of providing school-based early mental health intervention and prevention services to eligible students. AB 1133 is pending in the Assembly Health Committee. 6)PREVIOUS LEGISLATION. a) AB 114 (Committee on Budget), Chapter 43, Statutes of 2011, a companion measure to the 2011-12 Budget bill, relieved county mental health departments of the responsibility to provide mental health services to students with disabilities (AB 3632 program) and transferred that responsibility to school districts. b) AB 2212 (Gray) of 2014 was substantially similar to this bill. AB 2212 was held in the Assembly Appropriations Committee. 7)POLICY COMMENTS. a) Permissive or mandate. According to the author and sponsors of this bill, it would give LEAs direct access to EPSDT mental health services funding and reimbursement. However, the provisions of this bill may not fully AB 1018 Page 9 accomplish the author's stated intent. For example, this bill requires DHCS to allow counties to contract with LEAs which is an option already available. County MHPs can directly provide or contract with community-based and local providers, including LEAs, to provide the services for which the MHPs are responsible. Some counties do contract with LEAs and some do not. It also requires DHCS to allow LEAs without a county MHP contract to obtain federal Medi-Cal funds for entities under contract with the state. If the intent of this bill is to require county MHPs to contract with LEAs, or to require DHCS to allow LEAs without a county MHP contract to bill directly for EPSDT mental health services, this bill as drafted may not accomplish that. b) Specialty mental health waiver. This bill requires DHCS to seek any and all federal waivers and amendments and pursue activities to ensure federal funds are available for LEAs and entities LEAs contract with for services. The state is in the process of negotiating a complex waiver with the Centers for Medicare and Medicaid Services. The waiver is built on a continuation of the managed care concept for behavioral health with more responsibility and authority being granted to counties. This bill allows LEAs and the entities they contract with to have a fee-for-service arrangement outside of the county MHP structure and the waiver that created it. The state would face significant difficulties in gaining federal approval. REGISTERED SUPPORT / OPPOSITION: Support California Academy of Family Physicians AB 1018 Page 10 California Association for School Business Officials California Black Health Network California Medical Association California School Boards Association Coalition for Adequate Funding for Special Education Elk Grove Unified School District Special Education Local Plan Area Medical Billing Technologies, Inc. Napa County Special Education Local Plan Area Special Education Local Plan Area Administrators of California Solano County Special Education Local Plan Area Special Opportunities for Access & Reform Coalition One individual Opposition California Council of Community Mental Health Agencies California Right to Life Committee, Inc. Analysis Prepared by:Paula Villescaz / HEALTH / (916) 319-2097 AB 1018 Page 11