BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

          Bill No:             AB 1018            
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          |Author:    |Cooper                                               |
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          |Version:   |May 28, 2015                               Hearing   |
          |           |Date:   June 24, 2015                                |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Lynn Lorber                                          |
          |           |                                                     |
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          Subject:  Medi-Cal:  Early and Periodic Screening, Diagnosis,  
          and Treatment (EPSDT)

          NOTE:  This bill has been referred to the Committees on  
                Education and Health.  A "do pass" motion should include  
                referral to the Committee on Health. 

            SUMMARY
          
          This bill requires the California Department of Education and  
          the Department of Health Care Services to convene a task force  
          to examine the delivery of mental health services through the  
          Early and Periodic Screening, Diagnosis, and Treatment services.

            BACKGROUND
          
          The federal Individuals with Disabilities Education Act provides  
          that students with exceptional needs identified as having  
          "emotional disturbance" may be eligible to receive mental health  
          services.  Mental health services are considered "related  
          services" and include counseling, psychological services, parent  
          counseling and training, and residential placement, among  
          others.  (United States Code, Title 20, § 1400 et seq. and Code  
          of Federation Regulations, Title 34, § 300.34)  

          AB 114 (Committee on Budget), Chapter 43, Statutes of 2011,  
          shifted responsibility for mental health services for students  
          from counties to local educational agencies (LEAs).  Any and all  
          services identified in a student's individualized education  
          program (IEP) must be provided, whether directly by LEA  







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          employees or through contract with outside providers such as  
          county mental health agencies.  LEAs are required to ensure  
          services are provided to students regardless of who provides or  
          pays for those services.  (Education Code § 56139)

          The Early and Periodic Screening, Diagnostic and Treatment  
          program (EPSDT) is a Medi-Cal benefit for people 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  
          provides eligible children access to a range of mental health  
          services that include, among other things, mental health  
          assessment, mental health services, therapy, rehabilitation,  
          therapeutic behavioral services, crisis  
          intervention/stabilization, day rehabilitation/day treatment,  
          medication support and case management.




            ANALYSIS
          
          This bill requires the California Department of Education (CDE)  
          and the Department of Health Care Services (DHCS) to convene a  
          task force to examine the delivery of mental health services  
          through the Early and Periodic Screening, Diagnosis, and  
          Treatment (EPSDT) services.  Specifically, this bill:

       1)Provides that the goal of the task force is to ensure that  
            children are provided accessible and coordinated care that is  
            compliant with state and federal law, in a way that is  
            maximally cost-effective for the State.

       2)Requires the task force to consider all of the following:

               a)        Whether current technical assistance and guidance  
               to county mental health plans and schools is sufficient to  
               optimize service delivery and overall cost-effectiveness of  
               service delivery.

               b)        Whether current funding arrangements for services  








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               available through the EPSDT program and pursuant to the  
               federal IDEA maximize federal funding to the State for  
               provision of these services.

               c)        Issuing best practice guidelines for how special  
               education local plan areas and county mental health plans  
               can work together to optimize access to federal financial  
               participation for eligible services in both systems.

               d)        How disputes over responsibility for service  
               delivery is, and should be, resolved in cases where  
               children are dually eligible for EPSDT services and  
               services pursuant to the federal Individuals with  
               Disabilities Education Act (IDEA).

       3)Requires the task force to hold at least two public meetings by  
            October 1, 2016, and report to the Legislature by January 1,  
            2017, a summary of key findings and recommendations for  
            further action, if any.  

       4)Requires the task force to solicit information from relevant  
            stakeholders.

       5)Sunsets the provision of this bill on January 1, 2021.

          STAFF COMMENTS
          
       1)Need for the bill.  According to the author, "The Early and  
            Periodic Screening, Diagnosis, and Treatment program (EPSDT)  
            Medi-Cal funding has always been part of the total funding  
            package for serving the mental health needs of pupils with  
            disabilities.  The state shifted 100% of the mental health  
            service responsibility to schools in 2011 but did not shift  
            access to all the funding that is available to reimburse  
            schools for delivering the services to students.  There is no  
            state policy or direction on how a local educational agency  
            (LEA) or special education local plan area (SELPA) can seek  
            direct access to the Medi-Cal funding for the EPSDT program  
            through county managed care.  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.  This has created a hurdle for many local  
            educational agencies (LEAs) and special education local plan  
            areas (SELPAs) across the state."








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       2)Specialty mental health services.  Prior to 2012, a student with  
            exceptional needs with mental health needs and services  
            documented in the student's individualized education plan  
            (IEP) was referred by the LEA to county mental health agencies  
            for treatment, as called for under      AB 3632 (Willie Brown,  
            Ch. 26, 1984).  AB 114 (Committee on Budget, Ch. 43, 2011)  
            shifted responsibility for providing and funding Individuals  
            with Disabilities Education Act (IDEA)-related mental health  
            services from county mental health agencies to LEAs (the  
            Superintendent of Public Instruction is responsible for  
            monitoring LEAs to ensure compliance).  

       LEAs are responsible for educationally-necessary mental health  
            services that are identified in a student's IEP, but are  
            prohibited from directly providing or billing for EPDST  
            services unless the county mental health department chooses to  
            contract with the LEA for those services (Early and Periodic  
            Screening, Diagnosis, and Treatment program (EPSDT) is  
            considered "specialty" mental health).  LEAs are required to  
            ensure services identified in a student's IEP are provided,  
            regardless of whether the county directly provides services,  
            denies services, or reimburses the school for any costs if the  
            LEA provides services (in cases where LEA provides services  
            covered under general Medi-Cal that overlap with EPSDT  
            services).  

       According to California Department of Education (CDE), LEAs may use  
            one or more of the following options for sourcing mental  
            health services to Medi-Cal eligible students (including EPSDT  
            and other mental health services):

             a)   Provide and pay for services without seeking Medi-Cal  
               reimbursement.

             b)   Use the LEA Medi-Cal Billing Option Program.  Through  
               this program, the LEA employs or contracts with qualified  
               practitioners to provide the services pursuant to the IEP,  
               pays for the services, and submits a claim for  
               reimbursement.  In order to use this option, the LEA must  
               meet a number of administrative conditions, including  
               enrollment as a Medi-Cal provider.

             c)   For EPSDT services, collaborate with county mental  








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               health departments to secure the specialty mental health  
               services through the county mental health plan.  There are  
               two ways an LEA can secure these services:

                 i)       Enter into a contract or Memorandum of  
                   Understanding with the mental health plan for a  
                   specialty mental health service or an array of  
                   specialty mental health services.  In this case, county  
                   mental health plans provide the service and incur the  
                   cost, and bill Medi-Cal for federal reimbursement.

                 ii)      Request to be a certified provider of Medi-Cal  
                   specialty mental health services from the county mental  
                   health plan.  If the county mental health plan  
                   certifies the LEA as an organizational provider, the  
                   LEA would provide 



                   the specialty mental health service through a local  
                   educational agency (LEA)-qualified employee and submit  
                   a claim to the county mental health plan for  
                   reimbursement.   
                    http://www.cde.ca.gov/sp/se/ac/optsrltdsvcs.asp  

       1)Audit request.  Senator Beall requested an audit of mental health  
            services for students, which was approved by the Joint  
            Legislative Audit Committee on April 22, 2015.  The audit  
            request covers mental health services more broadly than Early  
            and Periodic Screening, Diagnosis, and Treatment program  
            (EPSDT) services.  Specifically, the request asks for the  
            audit to, among other things:

          a)   Provide the following information for pre- and post-AB 114  
               disaggregated by students for whom an IEP identifies them  
               as emotionally disturbed, for students whose IEP may also  
               call for mental health services, and for students who  
               qualify or do not quality for Med-Cal services:

                 i)       Compare the number of students each special  
                   education local plan area (SELPA) served under AB 3632  
                   to the number served under AB 114.

                 ii)      Determine whether the type of frequency of  








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                   service, and the providers of services, changed under  
                   the transition from AB 3632 to AB 114.

                 iii)     For a selection of students served under AB  
                   3632, determine whether their IEPs were changed during  
                   the SELPA's transition to AB 114.

          a)   Determine whether changes in treatment were made by service  
               providers as a result of the transition from AB 3632 to AB  
               114.

          b)   Identify the state and federal funding sources for mental  
               health services for students with disabilities, for the  
               past five fiscal years.

          c)   Identify the number of students with mental health issues  
               in California and compare that to the number of students  
               actually receiving services.

       1)Fiscal impact.  According to the Assembly Appropriations  
            Committee, this bill would impose one-time administrative  
            costs to DHCS, likely under $100,000 (General Fund/federal) to  
            staff support for a stakeholder workgroup.

       2)Related and prior legislation.

       RELATED LEGISLATION

       AB 1133 (Achadjian, 2015 ) establishes a four year pilot program,  
            the School-Based Early Mental Health Intervention and  
            Prevention Services Support Program (EMHI Support Program), to  
            provide outreach, free regional training, and technical  
            assistance for LEAs in providing mental health services at  
            school sites.  AB 1133 was held on the Assembly Appropriations  
            Committee's suspense file.

       AB 1299 (Ridley-Thomas, 2015) requires the California Health and  
            Human Services Agency to coordinate with Department of Health  
            Care Services (DHCS) and the Department of Social Services to  
            facilitate the receipt of medically necessary specialty mental  
            health services by foster youth, as specified, and for  
            Department of Health Care Services (DHCS) to meet specific  
            conditions on or before July 1, 2016.  AB 1299 is pending in  
            the Senate Human Services Committee.








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       PRIOR LEGISLATION

       AB 2212 (Gray, 2014) required DHCS to allow county mental health  
            plans to contract with local educational agencies (LEAs) to  
            provide Early and Periodic Screening, Diagnosis, and Treatment  
            program (EPSDT) services.  AB 2212 was held on the Assembly  
            Appropriations Committee's suspense file.

            SUPPORT
          
          Association of California School Administrators
          California Association of School Business Officials
          California School Boards Association
          Coalition for Adequate Funding for Special Education
          Santa Clara County Office of Education
          SELPA Administrators of California
          Special Opportunities for Access & Reform Coalition

            OPPOSITION
           
           California Right to Life Committee

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