BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1299| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1299 Author: Ridley-Thomas (D), et al. Amended: 8/18/16 in Senate Vote: 21 SENATE HEALTH COMMITTEE: 9-0, 6/17/15 AYES: Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen, Pan, Roth, Wolk SENATE HUMAN SERVICES COMMITTEE: 5-0, 7/14/15 AYES: McGuire, Berryhill, Hancock, Liu, Nguyen ASSEMBLY FLOOR: 80-0, 6/1/15 - See last page for vote SUBJECT: Medi-Cal: specialty mental health services: foster children SOURCE: California Alliance of Child and Family Services Steinberg Institute The Womens Foundation of California/Womens Policy Institute DIGEST: This bill requires the California Health and Human Services Agency (CHHSA) to coordinate with the Department of Health Care Services (DHCS) and the Department of Social Services (DSS) to facilitate the receipt of medically necessary specialty mental health services for foster youth, as specified. Requires DHCS to seek federal approval, as specified, to implement the provisions in this bill. AB 1299 Page 2 Senate Floor Amendments of 8/18/16 add coauthors, and change all references to the added Welfare and Institutions Code Section 14717.5 in this bill and instead number it as 14717.1. ANALYSIS: Existing law: 1)Establishes California's Medicaid program, Medi-Cal, through which eligible low-income individuals receive health care services. 2)Establishes the federal Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program to provide comprehensive and preventive health services, including preventive, dental, mental health (MH), developmental, and specialty services to Medi-Cal beneficiaries under the age of 21 who have full-scope Medi-Cal eligibility. Requires states to administer EPSDT as a condition of receiving federal Medicaid funds. 3)Requires county MH departments that receive full system of care funding, as specified, to provide children who are served by county social services and probation departments with MH screening, assessment, participation in multidisciplinary placement teams, and specialty MH treatment services for children placed out of home in group care and who meet the definition of medical necessity, to the extent resources are necessary. 4)Requires each local MH plan to establish a procedure to ensure access to outpatient specialty MH services, as required by EPSDT program standards, for any child in foster care who has been placed outside his or her county of adjudication. Requires the local MH plan of the county of original jurisdiction for a foster youth to remain responsible for providing or arranging for specialty MH services, including AB 1299 Page 3 the costs of services, unless there is a written contract in which the county of residence accepts responsibility for payment. 5)Establishes rights of foster youth, including the right to receive medical, dental, vision, and MH services. This bill: 1)Requires the CHHSA to coordinate with DHCS and DSS to facilitate the receipt of medically necessary specialty MH services by foster youth placed outside his or her county of original jurisdiction, and to take specified actions on or before July 1, 2017. 2)Requires DHCS to issue policy guidance concerning the conditions for and exceptions to "presumptive transfer," as defined, in consultation with DSS and with input of stakeholders, as specified, to ensure that the transfer or responsibility improves access to MH services and does not impede the continuity of existing care, as well as other specified criteria. 3)Defines "presumptive transfer" as, absent any exceptions established by this bill, responsibility for providing or arranging for specialty MH services is promptly transferred from the county of original jurisdiction to the county in which the foster child resides, as specified. 4)Allows, on a case-by-case basis and when consistent with the medical rights of a foster child, presumptive transfer to be waived and the responsibility for the provision of specialty MH services to remain with the county of original jurisdiction if any of the following exceptions exist: a) The transfer would disrupt continuity of care or delay access to services. AB 1299 Page 4 b) The transfer would interfere with family reunification efforts documented in the individual case plan. c) The foster child's placement in the county other than the county of original jurisdiction is expected to last less than six months. d) The foster child's residence is within 30 minutes of travel time to his or her established specialty MH care provider in the county of original jurisdiction. 5)Requires a waiver, as described in 4) above, to be contingent upon specified criteria, including an MH plan in the county of original jurisdiction demonstrating an existing contract with a specialty MH services provider, and the ability to deliver timely specialty MH services directly to a foster child. 6)Requires DSS and DHCS to adopt regulations by July 1, 2019, to implement the provisions in this bill. 7)Requires DHCS, if it determines it is necessary, to seek approval from the Centers for Medicare and Medicaid Services (CMS) prior to implementing the provisions in this bill, and to make an official request for approval from CMS no later than January 1, 2017. Requires this provision in this bill to be implemented only if and to the extent that federal financial participation, as specified, is available and all necessary federal approvals have been obtained. Background The purpose of the state's Child Welfare Services (CWS) system is to protect children from abuse and neglect and provide for their health and safety. When children are identified as being at risk of abuse, neglect, or abandonment, county juvenile AB 1299 Page 5 courts hold legal jurisdiction, and children are served by the CWS system through the appointment of a social worker. Through this system, there are multiple opportunities for the custody of the child, or his or her placement outside of the home, to be evaluated, reviewed, and determined by the judicial system, in consultation with the child's social worker, to help provide the best possible services to the child. The CWS system seeks to help children who have been removed from their homes reunify with their parents or guardians, whenever appropriate, or unite them with other individuals they consider to be family. There are currently close to 63,000 children in the state's CWS. California has a decentralized public MH system with most direct services provided through the county MH system. Counties (county MH plans) have the primary funding and programmatic responsibility for the majority of local MH programs. The state is required to meet certain federal requirements, including those set forth by Medicaid's child health component, known as the EPSDT program. Federal law-including statutes, regulations, and guidelines-requires Medi-Cal to cover a very comprehensive set of benefits and services for children, different from adult benefits. EPSDT provides eligible children access to a range of MH services that include, but are not limited to, MH assessment and services, therapy, rehabilitation, medication support services, day rehabilitation, day treatment intensive, crisis intervention/stabilization, targeted case management, and therapeutic behavioral services. MH needs of foster youth. Foster youth have a higher likelihood of experiencing emotional, behavioral, and developmental problems when compared to their non-foster peers. Abuse and neglect and unstable placements can contribute to and exacerbate MH issues. These problems can lead to other problems, like difficulty forming stable relationships and succeeding in school. Research underscores the need for improved access to health and MH services for foster youth, and points to the high incidence of behavioral or MH problems necessitating intervention among foster youth. The disproportionately high rates of emotional and behavioral health issues for youth placed in foster care, youth transitioning from foster care, and former foster youth can be correlated with other barriers foster youth face, such as higher rates of incarceration and homelessness, AB 1299 Page 6 diminished rates of high school completion and college attendance, and disproportionate prescribing of antipsychotic and psychotropic medications, as highlighted in an 2014 exposé by the San Jose Mercury News. There are indications that out-of-county foster youth may have higher needs and less access when it comes to MH treatment. A 2011 report issued by the California Child Welfare Council found that out-of-county foster youth were more likely to have been diagnosed with a serious MH disorder, yet were 10-15 percent less likely to have received any MH services compared to their in-county peers. And among those that did receive services, in-county foster youth fared better, receiving more care and more intensive treatment. Comments 1)Author's statement. According to the author, foster youth are three to six times more likely than non-foster youth to experience emotional, behavioral, and developmental problems. When a foster youth's MH needs are not met, the result is often placement instability; disruptions in permanency plans; school failure; costly care in group homes, residential treatment facilities, and psychiatric hospitals; delinquency; and even death. Especially at risk are foster youth placed across county lines, who often experience lengthy delays or denials in accessing MH services. According to the most recent data from the California Child Welfare Indicators Project at UC Berkeley, almost one-in-five foster youth statewide (an estimated 13,000) live in placements across county lines, or "out-of-county." This disparity in access to MH services between in-county and out-of-county youth exists despite both having the same entitlement to MH services under federal and state law. Related/Prior Legislation AB 1299 Page 7 AB 1808 (Galgiani, 2009) was substantially similar to this bill. AB 1808 was held on the suspense file of the Assembly Appropriations Committee. SB 785 (Steinberg, Chapter 469, Statutes of 2007) facilitates the access to MH services for foster youth who are placed outside of the original county of jurisdiction, including those being adopted or entering into a guardianship with a relative. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee: 1)Minor anticipated costs for CHHSA to coordinate with other departments (General Fund). 2)One-time costs of about $900,000 over two years and ongoing administrative costs of about $130,000 per year for DHCS to develop policies, adopt regulations, monitor disputes between counties, and monitor the provision of services under the bill (General Fund and federal funds). 3)Likely increase in county spending for specialty MH services in the low millions per year (local realignment funds and federal funds). There are indications that foster youth who are placed out-of-county are more likely to need MH services but are less likely to access such services. In part, this reduced access to services is due to administrative barriers that prevent county MH plans from determining which county is responsible for providing services. By improving the system for assigning responsibility for providing and paying for MH services, the bill is likely to increase utilization amongst foster youth who are underserved under the current system. Assuming that about 10% of foster youth in out-of-county AB 1299 Page 8 placements would access specialty MH services for an additional six months, the annual costs would be about $3 million per year. Under the provisions of the bill, county costs for services would be paid for with realignment growth funding and would not be a state responsibility. 4)Projected ongoing shift of realignment funding between counties of about $48 million per year (local realignment funds). According to projections by DHCS, foster youth impacted by the presumptive transfer process in the bill would receive annual services costing about $48 million. Under the bill, counties would be compensated for any increased cost through the allocation of realignment growth funding. SUPPORT: (Verified 8/17/16) California Alliance of Child and Family Services (co-source) Steinberg Institute (co-source) The Women's Foundation of California - Women's Policy Institute (co-source) A Better Way, Inc. Accessing Health Services for California's Alameda Foster Youth Alliance Alternative Family Services Aspiranet Association of Community Human Service Agencies Aviva Family and Children's Services Bayfront Youth and Family Services Bill Wilson Center Boys Republic California Hospital Association California Mental Health Advocacy for Children and Youth California State Association of Counties California State PTA California Youth Connection Casa Pacifica Centers for Children and Families ChildNet Youth and Family Services Children in Foster Care Task Force Children Now Children's Law Center of California Children's Receiving Home of Sacramento AB 1299 Page 9 County Welfare Directors Association Crittenton Services for Children and Families David and Margaret Youth and Family Services Edgewood Ettie Lee Youth and Family Services Families Now Family Care Network, Inc. First Place for Youth Fred Finch Youth Center Hathaway-Sycamores Child and Family Services Humboldt County Transition Age Youth Collaboration John Burton Foundation Junior Blind of America Lilliput Children's Services Maryvale Mendocino County Health and Human Services Agency National Association of Social Workers National Center for Youth Law North Star Family Center Optimist Youth Homes and Family Services Orange County Alliance for Children and Families Sacramento Children's Home San Diego Center for Children Seneca Family of Agencies Sierra Forever Families Sierra Sacramento Valley Medical Society Stars Behavioral Health Group Sunny Hills Services Tahoe Turning Point The Village Family Services TLC Child and Family Services Trinity Youth Services United Advocates for Children and Youth Unity Care Uplift Family Services Valley Teen Ranch Victor Treatment Center Westcoast Children's Clinic Young Minds Advocacy Project Youth Homes, Inc. OPPOSITION: (Verified8/17/16) AB 1299 Page 10 None received ARGUMENTS IN SUPPORT: Supporters of this bill, largely behavioral health and family advocates, argue that the question of which MH plan is responsible for providing much-needed services to foster youth who have been placed outside of their counties of jurisdiction has vexed California for more than 20 years. They state that foster youth go through transitions where their mental stability takes a toll and that this bill will ensure that the MH needs of these foster youth will not be delayed or denied as the youth transition to a new county of residence. Supporters further argue that foster youth already have a rough start in life, and not being able to access MH services, which they are entitled to, in a timely and efficient manner puts them at an even greater risk of serious harm and potentially permanent negative outcomes. ASSEMBLY FLOOR: 80-0, 6/1/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins Prepared by:Reyes Diaz / HEALTH / (916) 651-4111 8/23/16 10:58:35 **** END **** AB 1299 Page 11