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