BILL ANALYSIS Ó AB 1231 Page A Date of Hearing: April 21, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 1231 (Wood) - As Introduced February 27, 2015 SUBJECT: Medi-Cal: nonmedical transportation. SUMMARY: Adds nonmedical transportation, as defined, to the schedule of benefits in the Medi-Cal program administrated by the Department of Health Care Services (DHCS) for beneficiaries who receive services, as specified, and that are located more than 60 minutes or 30 miles from the beneficiary's place of residence. Authorizes DHCS to seek federal approval and conditions providing the benefit on DHCS obtaining federal matching funds. EXISTING LAW: 1)Establishes Medi-Cal under the direction of the DHCS, to provide qualifying individuals health care and a uniform schedule of benefits. 2)Allows emergency and limited nonemergency medical transportation for Medi-Cal beneficiaries. FISCAL EFFECT: This bill has not yet been analyzed by the AB 1231 Page B fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, nonmedical transportation is only a covered Medi-Cal benefit for children and Cal MediConnect beneficiaries. The author states the geographic and timely access standards for the California Department of Insurance require specialty care services to be provided within 60 minutes or 30 miles of a member's residence or workplace; however, the Department of Managed Health Care, which regulates most of the Medi-Cal managed care plans, has no such standards for specialty care. The author states the bill ensures low-income beneficiaries in rural areas have access to transportation for their specialty care needs. 2)BACKGROUND. a) Medicaid Transportation Services. Existing federal law requires that state Medicaid programs cover medical care and services and fulfill administrative requirements necessary to implement the program effectively, including a mandate that states must ensure necessary transportation for recipients to and from providers. For states to claim matching federal funding for these services, states may cover transportation services as an administrative expense or as an optional medical service. b) Medi-Cal Nonmedical Transportation. DHCS defines "nonmedical transportation" as transportation of beneficiaries to medical services via passenger car, taxicabs, or other forms of public or private conveyances provided by persons who are not registered as Medi-Cal providers. It does not include medical transportation, AB 1231 Page C which is defined as the transportation of sick, injured, invalid, convalescent, infirm, or otherwise incapacitated by ambulances, litter vans, or wheelchair vans licensed, operated, and equipped in accordance to state and local statutes, ordinances, and regulations. 3)Early Periodic Screening, Diagnostic and Treatment (EPSDT) and Cal MediConnect Nonmedical Transportation Coverage. The EPSDT benefit provides comprehensive and preventive health care services for Medi-Cal enrolled children under the age of 21. Services include preventive, dental, mental health, developmental, and specialty services. In June 2014, the Centers for Medicare and Medicaid Services published guidance that mandated states provide transportation services, including appointment scheduling assistance, necessary transportation to and from appointments, and reimbursement for mileage<1>. Cal MediConnect, also known as California's Coordinated Care Initiative, is three-year pilot project to promote coordinated healthcare delivery to seniors and people with disabilities who are dually eligible for both the state Medi-Cal program and the federal Medicare program. Cal MediConnect offers nonmedical transportation coverage as a supplemental benefit, allowing beneficiaries access to 30 one-way trips per year. In most cases, prior authorization or referrals are not required. a) Nonmedical transportation services are covered for beneficiaries who qualify for the EPSDT and Cal MediConnect but are not covered for non-EPSDT beneficiaries. The standard contract for Medi-Cal Managed Care plans does not require nonmedical transportation for non-EPSDT beneficiaries however plans may choose to voluntarily provide these services. -------------------------- <1> Centers for Medicare and Medicaid Services. "EPSDT - A Guide for States: Coverage in the Medicaid Benefit for Children and Adolescents," June 2014. AB 1231 Page D 4)Current Coverage. Existing regulations define "nonmedical transportation" as the movement of participants to and from an adult day health center in vehicles that not specifically equipped for medical transportation services. The regulations state transportation to and from participants' homes are to be scheduled to insure that participant one-way transit time does not exceed one hour. Anecdotal evidence strongly suggests there is a need for nonmedical transportation coverage, with transportation costs being denied by plans for scheduled specialty care on numerous occasions. 5)SUPPORT. The Western Center on Law and Poverty, the sponsor of this bill, asserts access to transportation services is critical for residents in rural areas where public transport is scarce and low-income beneficiaries cannot afford the limited transportation options available. Although transportation to and from health care services is assured through the Medicaid State Plan, variation in implementation of this benefit leaves uncertainty to availability and criteria for receiving such benefits. Supporters of the bill note specialty care often requires multiple trips to a specialist, which can be difficult for Medi-Cal beneficiaries in rural areas. This problem is exacerbated by the mandatory transition to managed care for Medi-Cal consumers in 28, mostly rural, counties who are reporting farther travel distances to access medically needed specialty services within the plan's network. 6)CHAPTERING OUT. This bill and AB 741 (Williams) both amend the same code sections. Each should be amended to avoid chaptering out the other, should both bills be enacted. REGISTERED SUPPORT / OPPOSITION: AB 1231 Page E Support Western Center on Law and Poverty (sponsor) Asian Law Alliance California Academy of Family Physicians California Pan-Ethnic Health Network California Primary Care Association Central California Alliance for Health Children Now Health Access California Legal Services of Northern California National Association of Social Workers, California Chapter AB 1231 Page F Opposition None on file. Analysis Prepared by:An-Chi Tsou / HEALTH / (916) 319-2097