BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: AB 1299 ----------------------------------------------------------------- |Author: |Ridley-Thomas | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |April 21, 2015 |Hearing |July 14, 2015 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Sara Rogers | |: | | ----------------------------------------------------------------- Subject: Medi-Cal: specialty mental health services: foster children SUMMARY This bill establishes Legislative intent to ensure that foster children placed outside of their county of original jurisdiction are able to access mental health services in a timely manner and to overcome barriers to care that exist when the responsibility for providing services remains with the county of original jurisdiction. It requires the California Health and Human Services Agency to coordinate with the Department of Health Care Services (DHCS) and the California Department of Social Services (CDSS) to issue policy guidance establishing presumptive transfer, as defined, of responsibility for providing mental health services from the county of original jurisdiction to the foster child's county of residence. Finally, it requires the Department of Finance to set or adjust the Behavioral Health subaccount allocations to ensure that counties who pay for mental health services pursuant to the bill are fully reimbursed ABSTRACT Existing law: 1)Establishes the criteria by which a child who has suffered, or is at risk of suffering, significant abuse or harm shall be within the jurisdiction of the juvenile court which may adjudge that person to be a dependent child of the court. (WIC 300) AB 1299 (Ridley-Thomas) PageB of? 2)Requires that a child who has been removed from the physical custody of the parent or guardian, unless placed with relatives, to be placed in the county of residence of the parent or guardian in order to facilitate reunification of the family. Further provides that, in the event that there are no appropriate placements available, a placement may be made in another county, preferably a county adjacent to the parent's or guardian's residence. (WIC 362.2 (g)) 3)Provides that the sending county shall be responsible for providing direct supervision and services or arranging for the provision of supervision and services by the receiving county based on a developed plan or formal agreement, if applicable, specifying the activities to be provided. (WIC 362.2 (g)(5) and (6); MPP 31-505) 4)Establishes California's Medicaid program, Medi-Cal, though which eligible low-income individuals receive health care services, including foster youth, certain recipients of the Adoption Assistance Program, and Kin-Gap. (WIC 14000 et seq.; 42 USC 1396, et seq.) 5)Pursuant to federal law, provides that children with Title IV-E Adoption Assistance, Foster Care or Guardianship care are defined as "mandatory categorically needy" when determining Medicaid eligibility. (42 CFR 435.145) 6)Establishes the federal Early and Periodic Screening, Diagnosis and Treatment (EPSDT) program to provide comprehensive and preventive health services including specialty mental health services to Medi-Cal beneficiaries under the age of 21 who have full-scope Medi-Cal eligibility. (42 USC Section 1396d) 7)Requires county mental health departments to provide children served by county social services and probation departments mental health screening, assessment, participation in AB 1299 (Ridley-Thomas) PageC of? multidisciplinary placement teams and specialty mental health treatment services for children placed out of home in group care, for those children who meet the definition of medical necessity, to the extent resources are available. Requires first priority be given to children currently receiving psychoactive medication. (WIC 5867.5) 8)Requires each local mental health plan to establish a procedure to ensure access to outpatient specialty mental health services, as required by EPSDT program standards, for any child in foster care who has been placed outside his or her county of adjudication. (WIC 14716) 9)Establishes the behavioral health subaccount within the support services account of the Local Revenue Fund 2011. Requires the state Controller to distribute funds on a monthly or quarterly basis pursuant to a schedule provided by the Department of Finance created in consultation with appropriate state agencies and the California State Association of Counties. Provides that funds distributed to counties from the behavioral health subaccount can only be used to provide Medi-Cal Specialty Mental Health Services, including the EPSDT benefit, and specified substance use disorder programs. (GOV 30025 and 30029.6 pursuant to SB 1020 (Chapter 40, Statutes of 2012)) This bill: 1)Establishes codified Legislative intent to ensure that foster children who are placed in their county of original jurisdiction are able to access mental health services, as specified. Further states the intent of the Legislature to overcome the barriers to mental health care existing in the current system for foster children who are placed outside their county of original jurisdiction. 2)Requires the California Health and Human Services Agency to coordinate with DHCS and CDSS to facilitate the receipt of medically necessary specialty mental health services by foster youth placed outside the county of original jurisdiction. AB 1299 (Ridley-Thomas) PageD of? 3)Requires DHCS to do the following on or before July 1, 2016: a. Issue policy guidance that establishes the presumptive transfer of responsibility for providing or arranging mental health services to foster youth, consistent with EPSDT standards and requirements, from the county of original jurisdiction to the foster youth's county of residence; b. Establish conditions and exceptions to presumptive transfer in consultation with CDSS and with input from stakeholders, as specified. c. Establish procedures for implementing a presumptive transfer that are consistent with the purpose and intent of the provisions of this bill and EPSDT standards and requirements. Requires DHCS to include a procedure for expedited transfer within 48 hours. 4)Defines "presumptive transfer" as responsibility for providing or arranging for mental health services being immediately transferred from the county of original jurisdiction to the county of residence, when the following occur, absent any specified conditions or exceptions: a. A foster child is placed in a county other than the county of original jurisdiction; and; b. The transfer of responsibility is requested by the county child welfare services agency, county probation department, foster caregiver, or any other person authorized to make medical decisions on behalf of the foster child. 5)Requires Department of Finance by May 1, 2016, to set or adjust its allocation schedule of the behavioral health subaccount so that counties that have paid, or will pay, for specialty mental health services for foster youth placed out-of-county are fully reimbursed during the fiscal year in which the services were provided. 6)Requires DHCS, if it determines it is necessary, to seek approval under the state's Section 1915 (b) Medicaid waiver from the Centers for Medicare and Medicaid Services (CMS) AB 1299 (Ridley-Thomas) PageE of? prior to implementing the provisions in this bill. Prohibits DHCS from implementing any provision that CMS determines is not permitted under the state's 1915 (b) waiver. (The state's specialty mental health services are operated under a section of the 1915 (b) waiver.) FISCAL IMPACT According to an Assembly Appropriations Committee analysis, this bill is expected to incur annual increased costs in the medical EPSDT program in the low millions (approx 50% GF), possibly more to the extent this bill increases access to mental health services for youth who face treatment and service barriers when placed out-of-county. BACKGROUND AND DISCUSSION Purpose of the bill: According to the author, the disparity in access to mental health services between in-county and out-of-county children exists despite both having the same entitlement to mental health services under federal and state law. The author states that county-based mental health plans face substantial administrative barriers when services must be provided to children placed out-of-county. Additionally, the author states that foster children are three to six times more likely to experience emotional, behavioral, and developmental problems than non-foster children. When these mental health needs go unmet, placement instability, disruptions in permanency plans, barriers to educational attainment, and other consequences can result. According to the author, "out-of-county" foster youth may be at greater risk because of lengthy delays or denials in accessing mental health services that can result from the way the system of care provision currently operates. Background: California is home to nearly 67,000 child welfare and probation foster children who have been removed from their homes as a result of traumatic life events usually involving severe abuse and neglect. California's child welfare system, in assuming AB 1299 (Ridley-Thomas) PageF of? responsibility as the acting "parent" for dependent children, seeks to provide a continuum of placement settings, services and supports for children and their biological and foster families. An important component of these services and supports are mental health services provided under the direction of county-operated mental health plans which provide specialty Medi-Cal mental health services to children and adults. Long-standing divisions and competing priorities between local child welfare, mental health, and education systems have led to insurmountable barriers to effectively serving many of these children within individual counties. Such barriers are further complicated when dependent children move out of their county of jurisdiction, the county with legal and financial responsibility to provide child welfare and mental health services, to a new county that often lacks mechanisms enabling the child to access needed services in the new county. California Child Welfare System California has a complex child welfare system incorporating federal, state and local funds expended for the broad purpose of child welfare, including child abuse prevention and response. The federal Administration of Children and Families administers numerous federal grants intended to assist states with child abuse prevention and response and to support the foster care system which provides board and care payments for eligible dependent children as well as a variety of "child welfare services" intended to support the child and family in accordance with the child's case plan. Within the statutorily established parameters for each grant, states have substantial flexibility in how to apportion funds but are accountable to significant federal oversight of program administration. CDSS supervises the 58 county-administered Child Welfare Services systems that investigate approximately 32,000 reports of abuse and neglect of children annually. According to CDSS, as of April of 2015, nearly one in three foster children live in Los Angeles County. Following a court order to remove a child from parental custody, existing law requires the court to order the care, custody, control and conduct of the child to be under AB 1299 (Ridley-Thomas) PageG of? the supervision of the social worker.<1> The social worker from the county of jurisdiction is responsible to visit the child at least monthly, to assess the child for needed services and supports and to establish a case plan that documents the services the child needs and receives. Out-of-county placements When children move across county lines, the county of jurisdiction retains legal responsibility for these child welfare-related activities. However, a sending county may arrange for the receiving county to assume the child welfare and/or mental health responsibilities through a formal agreement. As of January 2015, approximately 20 percent of foster youth were placed out-of-county (13,440 children) with Los Angeles County having the largest number (3,580 children) in out-of-county placement, while hosting 860 children from other counties.<2> Children may be placed out-of-county for a variety of reasons - to be placed with a relative, because the only appropriate and available foster home is across county lines, or because a child requires placement in a residential group home. Among children placed in group homes, 33 percent are placed out of county while 21 percent of children placed in Foster Family Agencies (FFAs) and 22 percent of children placed with relatives.<3> There is wide variation across counties in the frequency and patterns of children being placed out of county and in the number of children a county "hosts." Existing law requires mental health plans to establish a procedure to ensure access to outpatient specialty mental health services for any child in foster care who has been placed outside the county of jurisdiction. However, children's mental --------------------------- <1> WIC 361.2 <2> CWS/CMS 2015 Quarter 1 Extract. January 1, 2015 Children in Child Welfare Supervised Foster Care. (Approximations excluding out of state placements and missing youth, including probation youth) <3> Access to Mental Health Services for Foster Children Placed Out of County. National Center for Youth Law. January 2013. AB 1299 (Ridley-Thomas) PageH of? health advocates state that such care is often difficult to access. As a result, the county of jurisdiction frequently lacks relationships with a receiving county or the direct contracts with providers to enable access to needed care. Mental Health Services for Foster Youth A principal point of access for mental health services for foster youth is though specialty Medi-Cal mental health services, through the EPSDT program, by county-operated mental health plans amounting to at least $1.4 billion (FY2012-13).<4> Mental health plans may provide services directly, or by contracting with local providers including group homes, FFAs, clinics and community providers. Foster youth, like all children enrolled in Medi-Cal, are eligible for the EPSDT benefit based on their assessed medical need. This uncapped entitlement includes periodic screenings to determine a child's medical needs and treatment services based on identified mental health needs. EPSDT mental health services ideally provide Medi-Cal enrolled children access to a continuum of mental health services including: Mental health assessment; Crisis Intervention/Stabilization; Day Rehabilitation/Day Treatment Intensive; Intensive Care Coordination; Medication support services; Targeted case management; Therapeutic behavioral services. The intent of the EPSDT program is to provide children with a benefit at an exceptionally high standard of care. According to the U.S. Department of Health and Human Services: "While there is no federal definition of preventive medical necessity, federal amount, duration and scope rules require that coverage limits must be sufficient to ensure that the ------------------------- <4> A Complex Case: Public Mental Health Delivery and Financing in California. California Health Care Foundation. July 2013. AB 1299 (Ridley-Thomas) PageI of? purpose of a benefit can be reasonably achieved. Since the purpose of EPSDT is to prevent the onset of worsening of disability and illness and children, the standard of coverage is necessarily broad. the standard of medical necessity used by a state must be one that ensures a sufficient level of coverage to not merely treat an already-existing illness or injury but also, to prevent the development or worsening of conditions, illnesses, and disabilities."<5> In many counties, foster youth may also access mental health benefits through a managed care plan, which may screen for mental health needs and refer a foster youth to a provider directly, or to a county mental health plan where the child receives "specialty mental health services." Although EPSDT specialty mental health services are officially uncapped, they are apportioned largely according to an allocation schedule based on a mixture of 1991 and 2011 realignment formulas structured as a "rolling base" that grows each year that growth funds are available. If counties overspend their allocation, the county may seek reimbursement, however the process for this is lengthy and depends on the availability of growth monies. As a result of these complex historical financial arrangements, there is wide variation in the average payment per client, with some counties spending as little as $1,500 while others spend more than $8,000. Although some spending disparity may be the result of cost-of-living differences and population characteristics, mental health advocates argue that this spending disparity reflects disparities in access to services and standards of care. Stakeholders describe the limited availability and scope of county mental health services for children across counties despite repeated assurances from the DHCS and county mental health departments that services are available to all children --------------------------- --------------------------- <5> http://mchb.hrsa.gov/epsdt/mednecessity.html AB 1299 (Ridley-Thomas) PageJ of? AB 1299 (Ridley-Thomas) PageK of? who meet very broad medical necessity criteria under EPSDT.<6> Foster youth, caregivers, community service providers and advocates report that when a foster youth has been assessed as being in need of mental health services, it often is not until the youth is exhibiting more acute symptoms that the child accesses services -- despite the intended "early" nature of EPSDT. Performance Outcome System DHCS is engaged in the development of a Performance Outcome System (POS)<7> intended to establish outcome and performance measures for EPSDT services. According to DHCS, the POS will be "used to evaluate the domains of access, engagement, service appropriateness to need, service effectiveness, linkages, cost effectiveness and satisfaction." Additionally, the department states that three reports will be provided regarding statewide aggregate data, county groups, and county-specific data and that these reports will be updated every six months. The current report provides data for all medically eligible youth, although it is anticipated that foster-care-specific reports are forthcoming. Related legislation: SB 785 (Steinberg, Chapter 469, Statutes of 2007) established a form of presumptive transfer by requiring a host county provide specialty mental health services for foster youth placed out of county who move into permanency, largely through kinship guardianship and adoption. COMMENTS --------------------------- <6> http://www.kidsdata.org/topic/64/special-needs-referrals-difficul ty/table#fmt=323&loc=1774,2&tf=74&ch=136,135 <7> Pursuant to SB 1009 (Committee on Budget, Chapter 34, Statutes of 2012) and AB 82 (Committee on Budget, Chapter 23, Statutes of 2013). WIC 14707.5. AB 1299 (Ridley-Thomas) PageL of? According to children's mental health advocates, the model of presumptive transfer established under SB 785, which applied to adoptive and guardianship youth, has successfully enabled those youth to better access services. This bill proposes to expand presumptive transfer to all foster youth living outside their original county of jurisdiction, while providing exceptions to accommodate instances in which a foster youth may be better served by the original county. The author has solicited and received substantial feedback from numerous stakeholders representing counties, mental health providers and children's advocacy organizations, and is proposing the committee amendments in attached mock-up. Staff notes that the author and sponsors intend to continue working with stakeholders, including county representatives, to resolve several remaining concerns. PRIOR VOTES ----------------------------------------------------------------- |Assembly Floor: |80 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Appropriations Committee: |17 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Human Services Committee: |7 - | | |0 | ----------------------------------------------------------------- POSITIONS Support: California Alliance/Steinberg Institute/Women's Foundation of California/Women's Policy Institute (Co-Sponsor) California Alliance of Child and Family Services (Co-Sponsor) Accessing Health Services for California's Children in Foster Care Taskforce Alliance for Children's Rights Alternative Family Services Aspiranet AB 1299 (Ridley-Thomas) PageM of? Assessing Health Services for California's Children in Foster Care Task Force Aviva Family and Children's Services Bayfront Youth & Family Services California Council of Community Mental Health Agencies California State PTA California Youth Connection California Mental Health Advocates for Children and Youth Casa Pacifica Centers for Children and Families Child and Family Policy Institute of California Children Now Crittenton Services for Children and Families Community Clinic Association of Los Angeles County David & Margaret Youth and Family Services Ettie Lee Youth & Family Services Faith Advisory Council, Alameda County Families Now Family & Youth Roundtable Family Care Network, Inc. Fred Finch Youth Center Hathaway Sycamores Health Access California Hillsides Humboldt County Transition Age Youth Collaboration Integral Community Solutions Institute John Burton Foundation for Children Without Homes Junior Blind of America Lilliput Children's Services Maryvale Mendocino County Health and Human Services Agency National Association of Social Workers, CA Chapter North Star Family Center OPTIMIST Youth Homes and Family Services San Diego Center for Children Seneca Family of Agencies Sierra Forever Families Special Education Local Plan Area Stanford Youth Solutions The Village Family Services TLC Child and Family Services Trinity Youth Services United Advocates for Children and Families Unity Care Group, Inc. United Parents AB 1299 (Ridley-Thomas) PageN of? Victor Treatment Centers West Coast Children's Clinic Young Minds Advocacy Project Youth Homes Inc. Oppose: None received. Amendments Mock-up for 2015-2016 AB-1299 (Ridley-Thomas (A)) *********Amendments are in BOLD********* Mock-up based on Version Number 98 - Amended Assembly 4/21/15 The people of the State of California do enact as follows: SECTION 1. Article 6 (commencing with Section 14695.1) is added AB 1299 (Ridley-Thomas) PageO of? to Chapter 8.8 of Part 3 of Division 9 of the Welfare and Institutions Code, to read: Article 6. Specialty Mental Health Services for Foster Children 14695.1. (a) (1) It is the intent of the Legislature to ensure that foster children who are placed outside of their county of original jurisdiction, are able to access mental health services in a timely manner, consistent with their individualized strengths and needs and the requirements of Early Periodic Screening Diagnosis and Treatment (EPSDT) program standards and requirements. (2) It is the further intent of the Legislature to overcome the barriers to care that exist under existing law, which place responsibility for providing or arranging for mental health services to foster children who are placed outside of their county of original jurisdiction, on those same counties. (b) In order to facilitate the receipt of medically necessary specialty mental health services by a foster child who is placed outside of his or her county of original jurisdiction, the California Health and Human Services Agency shall coordinate with the department and the State Department of Social Services to take all of the following actions: (1) On or before July 1, 2016, all of the following shall occur: (A) The department shall issue policy guidance, pursuant to Section 14716, that establishes the presumptive transfer of responsibility for providing or arranging for mental health services to foster youth, consistent with the requirements of EPSDT program standards and requirements, from the county of original jurisdiction to the foster child's county of residence., and exceptions to presumptive transfer as defined in (d). (B) The department shall establish the policy guidanceconditions and exceptionsto presumptive transfer and exceptions in consultation with the State Department of Social Services, and with the input of stakeholders that include the County Welfare Directors Association of California, the County Behavioral Health Directors Association of California, provider AB 1299 (Ridley-Thomas) PageP of? representatives, and family and youth advocates. The conditions and exceptions to presumptive transfer are intended to ensure that the transfer of responsibility improves access to mental health care services and does not impede the continuity of existing care. (C) The department shall establish the procedures for implementing presumptive transfer that are consistent with the purposes and intent of this section and Early Periodic Screening Diagnosis and Treatment program standards and requirements, and shall include a procedure for expedited transfer within 48 hours. (c) "Presumptive transfer" for the purposes of this section, means that absent any conditions or exceptions as established pursuant to this article, responsibility for providing or arranging for mental health services shall immediately transfer from the county of original jurisdiction to the county of residence, under the following conditions:when all of the following conditions occur:(1) A foster child is placed in a county other than the county of original jurisdiction ; or (2) A foster child who resides in a county other than the county of jurisdiction is not receiving mental health services consistent with his or her treatment plan and the child's caregiver with responsibility for healthcare decisions, in consultation with the county probation or child welfare agency with responsibility for the care and placement of the child, or the Child and Family Team if one exists, requests transfer of responsibility under this section.(2) The transfer of responsibility is requested by the county child welfare services agency, county probation department, foster caregiver, or any other person authorized to make medical decisions on behalf of the foster child.(d) Consistent with the conditions herein and exceptions to presumptive transfer established by the department pursuant to (d) (1), the person or agency responsible for healthcare decisions, in consultation with the child and family team, if one exists, may waive the presumptive transfer, and the responsibility for the provision of mental health services shall AB 1299 (Ridley-Thomas) PageQ of? remain with the county of original jurisdiction. (1) On a case by case basis, the presumptive transfer specified in (c) may be waived and the responsibility for provision of specialty mental health services may remain with the mental health plan in the county of original jurisdiction when any of the following conditions are met. Such exceptions shall be documented in the child's case plan pursuant to Section 16501.1. Exceptions may include but are not limited to, the following: (A) It is determined that the transfer of services would disrupt continuity of care or timely access to services provided to the child, as defined in paragraph (2). (B) It is determined that the transfer would interfere with family reunification efforts. (C) The child's placement out of county is expected to last less than 9 months. (2) Exceptions to the presumptive transfer shall be contingent upon the county mental health plan in the county with dependency or delinquency jurisdiction demonstrating an existing contract with a foster care provider, or the ability to enter into a contract within 30 days of the exception decision, and the ability to deliver timely services directly to the foster child. This shall be documented in the child's case plan. (e) If the county of jurisdiction mental health plan has completed an assessment of needed services for the foster child, the host county shall accept the assessment. The host county may conduct additional assessments if the child's needs change. (f) Upon presumptive transfer, the mental health plan in the county of residence shall assume liability for the authorization and provision of services, and payments for services. (g) The department, in consultation with counties and through any administrative means within existing authority, will amend its contract with county mental health plans no later than July 1, 2016 to ensure a host county is reimbursed for services AB 1299 (Ridley-Thomas) PageR of? provided pursuant to this section within the fiscal year.14695.2. By May 1, 2016, the Department of Finance shall set or adjust its allocation schedule of the Behavioral Health Subaccount pursuant to the requirements of Senate Bill 1020 (Chapter 40, Statutes of 2012), in order that counties that have paid, or will pay, for specialty mental health services for foster children placed out of county pursuant to this article, are fully reimbursed during the fiscal year in which the services are provided.14695.3. (a) If the department determines it is necessary, it shall seek approval under the state's Section 1915(b) Medicaid waiver from the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) prior to implementing this article. (b) If the department makes the determination that it is necessary to seek CMS approval pursuant to subdivision (a), the department shall make an official request for approval from CMS no later than July 1, 2016, and shall do everything within its power necessary to secure an expeditious approval from CMS. (c) The department shall not be required to implement any provision of this article that CMS determines is not permitted under the state's waiver. Add New Section SECTION 14714 of the Welfare and Institutions Code is amended to read: 14714. (a) (1) Except as otherwise specified in this chapter, a contract entered into pursuant to this chapter shall include a provision that the mental health plan contractor shall bear the financial risk for the cost of providing medically necessary specialty mental health services to Medi-Cal beneficiaries. (2) If the mental health plan is not administered by a county, the mental health plan shall not transfer the obligation for any specialty mental health services to Medi-Cal beneficiaries to the county. The mental health plan may purchase services from the county. The mental health plan shall establish mutually agreed-upon protocols with the county that clearly establish AB 1299 (Ridley-Thomas) PageS of? conditions under which beneficiaries may obtain non-Medi-Cal reimbursable services from the county. Additionally, the plan shall establish mutually agreed-upon protocols with the county for the conditions of transfer of beneficiaries who have lost Medi-Cal eligibility to the county for care under Part 2 (commencing with Section 5600), Part 3 (commencing with Section 5800), and Part 4 (commencing with Section 5850) of Division 5. (3) The mental health plan shall be financially responsible for ensuring access and a minimum required scope of benefits and services, consistent with state and federal requirements, to Medi-Cal beneficiaries who are residents of that county regardless of where the beneficiary resides except as provided for and consistent with Section 14695.1. The department shall require that the same definition of medical necessity be used, and the minimum scope of benefits offered by each mental health plan be the same, except to the extent that prior federal approval is received and is consistent with state and federal laws. -- END --