BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          BILL NO:                    AB 1018             
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          |AUTHOR:        |Cooper                                         |
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          |VERSION:       |May 28, 2015                                   |
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          |HEARING DATE:  |July 1, 2015   |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Medi-Cal: Early and Periodic Screening, Diagnosis, and  
          Treatment (EPSDT).

           SUMMARY  :  Requires the Department of Health Care Services and the  
          Department of Education to convene a task force, as specified,  
          to examine the delivery of mental health services through the  
          EPSDT services.
          
          Existing law:
          1)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (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  
            individuals under 21 years, including screening, vision,  
            dental, hearing, and other necessary services to correct or  
            ameliorate defects and physical and mental illnesses and  
            conditions discovered by the screening services, whether or  
            not the services are covered under the State Plan.

          3)Establishes, under the terms of a federal Medicaid waiver, a  
            managed care program providing Medi-Cal specialty mental  
            health (MH) services for eligible low-income persons  
            administered through local county MH plans under contract with  
            DHCS.
          
          This bill:
          1)Requires DHCS and the Department of Education to convene a  
            joint task force to examine the delivery of MH services to  
            children eligible for EPSDT services and for services pursuant  
            to the federal Individuals with Disabilities Education Act  
            (IDEA). Specifies that the goal of the task force is to ensure  







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            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 MH plans and schools is sufficient  
                    to optimize service delivery and overall  
                    cost-effectiveness of service delivery;
                  b)        Whether current funding arrangements for  
                    services available through the EPSDT program and  
                    pursuant to IDEA maximize federal funding to the state  
                    for provision of these services;
                  c)        Issuing best practice guidelines for how  
                    special education local plan areas (SELPAs) and county  
                    MH plans can work together to optimize access to  
                    federal financial participation for eligible services  
                    in both systems; and,
                  d)        How disputes over responsibility for service  
                    delivery is, and should be, resolved in cases where  
                    children are dually eligible for EPSDT and IDEA  
                    services.

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

          4)Repeals the provisions in this bill on January 1, 2021.

           FISCAL  
          EFFECT  :  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.

           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |71 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Appropriations Committee:  |17 - 0                      |








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          |------------------------------------+----------------------------|
          |Assembly Health Committee:          |18 - 0                      |
          |                                    |                            |
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          COMMENTS  :
          1)Author's statement. According to the author, EPSDT Medi-Cal  
            funding has always been part of the total funding package for  
            serving the MH needs of pupils with disabilities.  The state  
            shifted 100% of the MH 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  
            education agency (LEA) or SELPA can seek direct access to  
            Medi-Cal funding for EPSDT through county managed care.  
            Instead, it is up to each LEA or SELPA to negotiate directly  
            with county MH programs. This has created a hurdle for many  
            LEAs/SELPAs across the state.  The county MH program  
            determines at the local level whether they want the LEA or  
            SELPA to be vendorized or certified to bill Medi-Cal. EPSDT is  
            a federal entitlement program without a cap. LEAs should be  
            eligible for direct access to EPSDT funding in order to  
            provide eligible children a range of MH services. It is in the  
            state's best interest to seek federal funding to serve the  
            needs of the eligible recipient, regardless of who the service  
            provider is, whether the services are offered by county MH or  
            a LEA/SELPA.  

          2)Background. The federal IDEA provides that students with  
            exceptional needs identified as having emotional disturbance  
            may be eligible to receive MH services, which are considered  
            related services and include counseling, psychological  
            services, parent counseling and training, and residential  
            placement, among others. 

            Prior to 2012, a student with exceptional needs, who also had  
            MH needs and services documented in their individualized  
            education plan (IEP), was referred by the local educational  
            agencies (LEAs) to county MH agencies for treatment, pursuant  
            to AB 3632 (Willie Brown, Chapter 26, Statutes of 1984). AB  
            114 (Committee on Budget, Chapter 43, Statutes of 2011)  
            shifted responsibility for providing and funding IDEA-related  
            MH services from county MH agencies to LEAs (the  
            Superintendent of Public Instruction is responsible for  
            monitoring LEAs to ensure compliance). Any and all services  








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            identified in a student's IEP must be provided, whether  
            directly by LEA employees or through contract with outside  
            providers, such as county MH agencies. LEAs are required to  
            ensure services are provided to students regardless of who  
            provides or pays for those services.  

            The EPSDT program 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 MH services that include, among other things, MH  
            assessment, MH services, therapy, rehabilitation, therapeutic  
            behavioral services, crisis intervention/stabilization, day  
            rehabilitation/day treatment, medication support, and case  
            management.

          3)LEAs. LEAs are responsible for educationally necessary MH  
            services that are identified in a student's IEP, but are  
            prohibited from directly providing or billing for EPDST  
            services unless the county MH department chooses to contract  
            with the LEA for those services (EPSDT is considered specialty  
            MH). 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 the LEA provides services covered under general Medi-Cal  
            that overlap with EPSDT services).  

          According to CDE, LEAs may use one or more of the following  
            options for sourcing MH services to Medi-Cal eligible students  
            (including EPSDT and other MH 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  








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                 enrollment as a Medi-Cal provider.

               c)     For EPSDT services, collaborate with county MH  
                 departments to secure the specialty MH services through  
                 the county MH plan. There are two ways an LEA can secure  
                 these services:

                    i.          Enter into a contract or Memorandum of  
                      Understanding with the MH plan for a specialty MH  
                      service or an array of specialty MH services.  In  
                      this case, county MH 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 MH services from the county MH  
                      plan. If the county MH plan certifies the LEA as an  
                      organizational provider, the LEA would provide the  
                      specialty MH service through an LEA qualified  
                      employee and submit a claim to the county MH plan  
                      for reimbursement.  

          1)Audit request.  Senator Beall requested an audit of MH  
            services for students, which was approved by the Joint  
            Legislative Audit Committee on April 22, 2015. The audit  
            request covers MH services more broadly than 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 MH 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 service, and the providers of  
                         services, changed under the transition from AB  
                         3632 to AB 114; and,









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

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

                  c)        Identify the state and federal funding sources  
                    for MH services for students with disabilities for the  
                    past five fiscal years.

                  d)        Identify the number of students with MH issues  
                    in California and compare that to the number of  
                    students actually receiving services.

          2)Double referral. This bill was heard in the Senate Education  
            Committee on July 24, 2015, and passed out with a vote of 9-0.  


          3)Related legislation. AB 1299 (Ridley-Thomas), requires the  
            California Health and Human Services Agency to coordinate with  
            DHCS and the Department of Social Services to facilitate the  
            receipt of medically necessary specialty MH services by foster  
            youth, as specified, and for DHCS to meet specific conditions  
            on or before July 1, 2016.  AB 1299 is set for hearing on July  
            14, 2015, in the Senate Human Services Committee.

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

          4)Prior legislation. AB 2212 (Gray, of 2014), required DHCS to  
            allow county MH plans to contract with local educational  
            agencies (LEAs) to provide EPSDT services. AB 2212 was held on  
            the Assembly Appropriations Committee's suspense file.

            AB 114 (Committee on Budget), shifted responsibility for MH  
            services for students from counties to LEAs. 

          5)Support. The sponsors and other supporters of this bill,  
            including special education advocates and LEAs, argue that  








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            when responsibility was shifted, from county agencies 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. Supporters argue that it is critical that  
            LEAs have access to these additional Medi-Cal dollars to help  
            serve the needs of their pupils.

          6)Opposition. The California Right to Life Committee, Inc.  
            (CRLC) argues that this bill focuses on providing more MH  
            services through schools for young children and youth. CRLC  
            states they are concerned about this trend because it will  
            lead to an identification of children having one MH diagnosis  
            or another based on a subjective evaluation, which may not  
            have been correct at the time. 

           SUPPORT AND OPPOSITION  :
          Support:  
           Special Opportunities for Access & Reform Coalition (SELPAs of  
           Merced, Napa, Solano, Sutter, and Yolo Counties) (sponsor)
          Association of California School Administrators 
          Butte County Special Education Local Plan Area (previous  
          version)
          California Association for School Business Officials (previous  
          version)
          California Black Health Network (previous version)
          California Medical Association (previous version)
          California School Boards Association (previous version)
          Coalition for Adequate Funding for Special Education
          Elk Grove Unified School District Special Education Local  
          Planning Area (previous version)
          Medical Billing Technologies, Inc. (previous version)
          Mount Diablo Unified Special Education Local Plan Area (previous  
          version)
          NAMI California (previous version)
          Santa Clara County Office of Education
          Special Education Local Plan Area Administrators of California
          Twin Rivers Unified School District (previous version)
                    
          Oppose:   California Right to Life Committee, Inc.
          


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