BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 1018 --------------------------------------------------------------- |AUTHOR: |Cooper | |---------------+-----------------------------------------------| |VERSION: |May 28, 2015 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |July 1, 2015 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Reyes Diaz | --------------------------------------------------------------- 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 AB 1018 (Cooper) Page 2 of ? 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 : ----------------------------------------------------------------- |Assembly Floor: |71 - 0 | |------------------------------------+----------------------------| |Assembly Appropriations Committee: |17 - 0 | AB 1018 (Cooper) Page 3 of ? |------------------------------------+----------------------------| |Assembly Health Committee: |18 - 0 | | | | ----------------------------------------------------------------- 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 AB 1018 (Cooper) Page 4 of ? 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 AB 1018 (Cooper) Page 5 of ? 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, AB 1018 (Cooper) Page 6 of ? 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 AB 1018 (Cooper) Page 7 of ? 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. -- END -- AB 1018 (Cooper) Page 8 of ?