BILL ANALYSIS Ó AB 1261 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1261 (Burke) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 79-0 | (June 2, |SENATE: |40-0 | (September 10, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY: Codifies the Community-Based Adult Services (CBAS) program and its requirements as a Medi-Cal benefit to be provided at licensed adult day health care (ADHC) centers. Specifically, this bill requires CBAS providers to meet all applicable licensing and Medi-Cal standards and requires CBAS to be included as a covered service in contracts with all Medi-Cal managed care (MCMC) plans, with standards, eligibility criteria, and provisions that are at least equal to those contained in the approved Section 1115(a) Medicaid demonstration project in effect at the time of this bill's enactment. In addition, this bill requires CBAS to be provided and available at licensed ADHC centers that are certified by the California Department of Aging (CDA) as CBAS providers pursuant to a participant's individualized plan of care, as developed by the center's multidisciplinary team. The Senate amendments limit the requirement to provide CBAS to AB 1261 Page 2 counties in which it was offered on April 1, 2012, clarify beneficiary eligibility requirements, and requires CBAS to be a covered service in Medi-Cal managed care plans. FISCAL EFFECT: According to the Senate Appropriations Committee, ongoing costs of about $330 million per year to continue to provide CBAS in the counties in which this program is currently operating; unknown cost savings if the Department of Health Care Services (DHCS) authorizes managed care plans to provide CBAS in counties where services are currently unavailable; and, ongoing costs of about $3.3 million per year to certify that CBAS providers are meeting Medi-Cal program criteria and requirements by the Department of Aging. COMMENTS: The author argues this bill preserves access to the ADHC services that thousands of frail Californians and their families depend on through the CBAS program and gives providers a reliable rate structure to ensure program sustainability. This bill will align state law with the federal requirements for the CBAS benefit, consistent with the program specifications in the current waiver. This bill also requires MCMC plans to reimburse contracted providers at rates that are not less than Medi-Cal fee-for-service (FFS). The author argues this will allow for better program sustainability as well as legislative input and oversight. The author points to information provided by CDA showing that 53 ADHC facilities have closed in the last three years, about 20% of available facilities. The CBAS Program is administered jointly by DHCS, CDA, and the Department of Public Health (DPH). DPH licenses ADHC centers and CDA certifies them for participation in the Medi-Cal program. CBAS offers services to eligible older adults and/or adults with disabilities to restore or maintain their optimal capacity for self-care and delay or prevent inappropriate or personally undesirable institutionalization. CBAS services include: an individual assessment; professional nursing services; physical, occupational, and speech therapies; mental health services; therapeutic activities; social services; personal care; meals; nutritional counseling; and, AB 1261 Page 3 transportation to and from the participant's residence and the CBAS center. CBAS services are provided at licensed ADHC centers. ADHC is a licensed community-based day care program providing participants with daily registered nursing care, physical, occupational and speech language pathology therapies, therapeutic activities and social services in one setting. ADHC helps adults manage chronic disabling health conditions while living in their home and community. Each ADHC center has a multidisciplinary team of health professionals who conduct a comprehensive assessment of each participant in order to determine and plan the ADHC services needed to meet an individual's specific health and social needs, pursuant to an individual plan of care. Supporters argue this bill will help frail people continue to live in their own homes by effectively managing their care and providing needed services. The supporters note it also aligns state law with federal requirements for the CBAS benefits, consistent with the program specifications in the current Section 1115 waiver. The support argues that this bill also is important because it requires MCMC plans to reimburse contracted providers at rates that are not less than Medi-Cal FFS rates, a provision that existed in the waiver until November 2014 and is important to continue until CBAS is fully integrated into managed care. They conclude that as California implements health care reform and moves to managed, outcome-driven care, it is essential that integrated community-based programs such as CBAS are key partners in these changing systems and that they expand to meet the growing needs of California's aging population and the goals of offering alternatives to institutional care. This bill has no known opposition. Analysis Prepared by: Roger Dunstan / HEALTH / (916) 319-2097 FN: 0002306 AB 1261 Page 4