BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 2394             
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          |AUTHOR:        |Eduardo Garcia                                 |
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          |VERSION:       |June 14, 2016                                  |
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          |HEARING DATE:  |June 22, 2016  |               |               |
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          |CONSULTANT:    |Scott Bain                                     |
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           SUBJECT  :  Medi-Cal:  nonmedical transportation

           SUMMARY  : Requires Medi-Cal to provide coverage of nonmedical  
          transportation for a beneficiary to obtain covered Medi-Cal  
          services, subject to utilization controls and permissible time  
          and distance standards.
          
          Existing law:
          1)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income individuals receive health care services.  


          2)Establishes a schedule of benefits under the Medi-Cal program,  
            which includes medical transportation services, subject to  
            utilization controls, and in-home medical care services when  
            medically appropriate and subject to utilization controls, for  
            beneficiaries who would otherwise require care for an extended  
            period of time in an acute care hospital at a cost higher than  
            in-home medical care services. Included within the definition  
            of in-home medical care services are emergency and  
            non-emergency medical transportation (NMT).

          3)Requires, under federal Medicaid regulations, states' Medicaid  
            plans to:

               a)     Specify that the Medicaid agency will ensure  
                 necessary transportation for recipients to and from  
                 providers; and, 
               b)     Describe the methods that the Medicaid agency will  
                 use to meet this requirement. 
          
          This bill:







          AB 2394 (Eduardo Garcia)                          Page 2 of ?
          
          
          1)Requires Medi-Cal to provide coverage for NMT for a  
            beneficiary to obtain covered Medi-Cal services, subject to  
            utilization controls and permissible time and distance  
            standards.

          2)Defines "NMT" to include, at a minimum, round trip  
            transportation for a beneficiary to obtain covered Medi-Cal  
            services by passenger car, taxicab, or any other form of  
            public or private conveyance, and mileage reimbursement when  
            conveyance is in a private vehicle arranged by the beneficiary  
            and not through a transportation broker, bus passes, taxi  
            vouchers, or train tickets.

          3)Excludes from the definition of NMT the transportation of  
            sick, injured, invalid, convalescent, infirm, or otherwise  
            incapacitated beneficiaries by ambulances, litter vans, or  
            wheelchair vans licensed, operated, and equipped in accordance  
            with state and local statutes, ordinances, or regulations.

          4)Requires NMT to be provided for a beneficiary who can attest  
            in a manner to be specified by DHCS that other currently  
            available resources have been reasonably exhausted. 
          5)Requires, for beneficiaries enrolled in a Medi-Cal managed  
            care plan, NMT to be provided by the beneficiary's Medi-Cal  
            managed care plan. 

          6)Requires DHCS, for Medi-Cal fee-for-service beneficiaries, to  
            provide NMT when those services are not available to the  
            beneficiary under specified provisions of existing law  
            providing federal Medicaid funding for targeted case  
            management and Medi-Cal administrative activities.

          7)Requires NMT to be provided in a form and manner that is  
            accessible, in terms of physical and geographic accessibility,  
            for the beneficiary and consistent with applicable state and  
            federal disability rights laws.

          8)Prohibits this bill from being interpreted to add a new  
            benefit to the Medi-Cal program.

          9)Requires DHCS to seek any federal approvals that may be  
            required to implement this bill, including, but not limited  
            to, approval of revisions to the existing Medicaid State Plan  
            that DHCS determines are necessary to implement this bill.









          AB 2394 (Eduardo Garcia)                          Page 3 of ?
          
          
          10)Implements this bill only to the extent that federal  
            financial participation is available and not otherwise  
            jeopardized and any necessary federal approvals have been  
            obtained.

          11)States that, prior to the effective date of any necessary  
            federal approvals, NMT was not a Medi-Cal managed care benefit  
            with the exception of when provided as an Early and Periodic  
            Screening, Diagnosis, and Treatment (EPSDT) service.

          12)Requires DHCS to implement, interpret or make specific this  
            bill by means of all-county letters, plan letters, plan or  
            provider bulletins, or similar instructions until regulations  
            are adopted. Requires DHCS, by July 1, 2018, to adopt  
            regulations in accordance with the Administrative Procedure  
            Act. Requires DHCS, commencing July 1, 2017, to provide a  
            status report to the Legislature on a semiannual basis until  
            regulations have been adopted.

          13)States legislative intent in enacting this bill to affirm the  
            requirement under federal Medicaid regulation, in which DHCS  
            is required to provide necessary transportation, including  
            nonmedical transportation, for recipients to and from covered  
            services. 

           FISCAL  
          EFFECT  :  According to the Assembly Appropriations Committee: 

          1)One-time costs, likely about $100,000 over one to two years,  
            to develop utilization control guidelines for this new benefit  
            (General Fund (GF)/federal funds). 


          2)Costs and cost pressure, potentially in the range of $1-2  
            million (federal funds/GF) annually combined for Medi-Cal  
            fee-for-service (FFS) and managed care, associated with  
            increased utilization of NMT benefits. The majority of costs  
            would be federal dollars, with the remainder GF. Even where  
            the benefit is already provided, standardization of time and  
            distance standards or utilization controls, as well as a  
            definitive statement in statute that NMT is a covered benefit,  
            could impact utilization of the benefit. 


               a)     Costs to the managed care system associated with  








          AB 2394 (Eduardo Garcia)                          Page 4 of ?
          
          
                 this bill would be experienced as cost pressure to  
                 increase rates. The majority of managed care plans  
                 already provide this benefit. 


               b)     Any costs to the FFS Medi-Cal system would be  
                 experienced as direct state costs. About half of all  
                 counties, accounting for a majority of the Medi-Cal  
                 population, already provide nonmedical transportation  
                 through the FFS system. 


          1)Provision of transportation when beneficiaries are otherwise  
            unable to travel to obtain medical services could have unknown  
            offsetting savings associated with reduced hospitalizations  
            and better health outcomes. Some plans reportedly provide  
            transportation on a cost-neutral basis for this reason. 


          2)Utilization is highly uncertain and depends on many variables,  
            including the network robustness, whether beneficiaries and  
            providers know it is a covered benefit, and how easy it is to  
            access. 

           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |78 - 0                      |
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          |Assembly Appropriations Committee:  |20 - 0                      |
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          |Assembly Health Committee:          |19 - 0                      |
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          COMMENTS  :
          1)Author's statement.  According to the author, under federal  
            Medicaid law and California's State Medicaid Plan,  
            transportation of eligible recipients to and from health care  
            services is assured through a variety of methods.  However,  
            NMT, defined by DHCS as transportation of members to medical  
            services by passenger car, taxicabs, or other forms of public  
            or private conveyances provided by persons not registered as  
            Medi-Cal providers, is only provided directly as a Medi-Cal  








          AB 2394 (Eduardo Garcia)                          Page 5 of ?
          
          
            benefit for children and CalMediConnect beneficiaries  
            (CalMediConnect beneficiaries are people who are dually  
            eligible for Medi-Cal and Medicare).  Unfortunately, for all  
            other adults, questions remain regarding the basic  
            availability of NMT as a covered benefit.  Based on  
            information provided by DHCS in 2015, 17 of the 21 Medi-Cal  
            managed care plans purport that they provide NMT, but wide  
            variances in policies and procedures make it difficult for  
            beneficiaries to obtain NMT and there is no clear statewide  
            process for all other beneficiaries. This bill ensures that  
            low-income Medi-Cal beneficiaries throughout the state, but  
            particularly in rural areas, have access to transportation to  
            get to needed doctor appointments.

          2)Background on Medi-Cal coverage of transportation. Medi-Cal  
            coverage of transportation services is governed by state and  
            federal law. Federal regulations require a state's Medicaid  
            State Plan to specify that the Medicaid agency will ensure  
            necessary transportation for recipients to and from providers,  
            and to describe the methods that the agency will use to meet  
            this requirement. California's Medicaid State Plan indicates  
            California provides both emergency and non-emergency medical  
            transportation. 

          DHCS distinguishes between non-emergency medical transportation  
            (NEMT) and NMT. NEMT is transport by ambulance, litter van,  
            and wheelchair van medical transportation when transport by  
            ordinary means of public or private conveyance is medically  
            contraindicated, and transportation is required for the  
            purpose of obtaining needed medical care. By contrast, NMT is  
            transportation of members to medical services by passenger  
            car, taxicabs, or other forms of public or private conveyances  
            provided by persons not registered as Medi-Cal providers. NMT  
            does not include the transportation of sick, injured, invalid,  
            convalescent, infirm, or otherwise incapacitated members by  
            ambulances, litter vans, or wheelchair vans licensed, operated  
            and equipped in accordance with state and local statutes,  
            ordinances or regulations. 

            DHCS indicates NMT is covered for children under age 21  
            through EPSDT, and for dually eligible beneficiaries enrolled  
            in CalMediConnect plans (plans that combine Medicare and  
            Medi-Cal benefits in one health plan, which operate in seven  
            counties). CalMediConnect beneficiaries receive up to 30  
            one-way trips per year with no co-payment. For Medi-Cal  








          AB 2394 (Eduardo Garcia)                          Page 6 of ?
          
          
            beneficiaries enrolled in Medi-Cal managed care plans, 17 out  
            of 21 plans DHCS surveyed reported having a contracted network  
            for NEMT, and the four health plans that did not have a  
            network were in the process of contracting with a vendor or  
            were utilizing only qualified Medi-Cal providers.

          3)Prior legislation. AB 1231 (Wood of 2015), was substantially  
            similar to this bill and would have added NMT as a Medi-Cal  
            benefit. Along with five other bills, AB 1231 was vetoed by  
            the Governor, who stated that:

               These bills unnecessarily codify certain existing health  
               care benefits or require the expansion or development of  
               new benefits and procedures in the Medi-Cal program. Taken  
               together, these bills would require new spending at a time  
               when there is considerable uncertainty in the funding of  
               this program. 

               Until the fiscal outlook for Medi-Cal is stabilized, I  
               cannot support these measures.

          4)Support. This bill is sponsored by the Western Center on Law  
            and Poverty (WCLP), which writes that this measure would  
            ensure Medi-Cal members have access to medical care by  
            clarifying that NMT is a Medi-Cal benefit and includes  
            roundtrip transportation for members to obtain covered  
            Medi-Cal services. WCLP argues access to transportation  
            services is critical for rural residents where distances to  
            health providers are significant, public transport is scarce,  
            and low-income beneficiaries cannot afford the limited  
            transportation options available. According to the state's  
            Medicaid State Plan, California "assures" transportation to  
            and from Medi-Cal services, but WCLP argues the implementation  
            of the transportation benefit varies widely across the state.  
            As a result, Medi-Cal beneficiaries are either unaware that  
            they may get assistance to go to their appointments or must  
            fight through nearly impossible administrative hurdles to  
            access the benefit. WCLP states that, for many rural Medi-Cal  
            beneficiaries seeing a specialist is not a one-time trip, but  
            multiple trips where time off work must be requested,  
            childcare needs to be arranged, rides from relatives and  
            friends must be scrounged, and financial tradeoffs must be  
            made. WCLP concludes that this issue is exacerbated by the  
            mandatory transition into managed care for Medi-Cal consumers  
            in 28 mostly rural counties who are reporting farther travel  








          AB 2394 (Eduardo Garcia)                          Page 7 of ?
          
          
            distances to access medically needed specialty services.
          
          5)Opposition. The California Ambulance Association states that  
            the Medi-Cal Program severely underpays ambulance providers  
            and that Medi-Cal should not be expanded to include new  
            services until the Medi-Cal program properly funds emergency  
            ambulance services. 

          6)Oppose unless amended. The California Association of Health  
            Plans (CAHP), the Local Health Plans of California and Anthem  
            Blue Cross write they are opposed to this bill unless it is  
            amended. CAHP states this bill does not include an  
            implementation date delay that will allow Medi-Cal managed  
            care plan reimbursement rates to be developed prior to the  
            enactment of the new benefit. CAHP argues this bill creates a  
            new Medi-Cal benefit mandate without at least a six month time  
            delay, which will result in plans having to absorb the cost of  
            the new benefit until reimbursement rates are developed.
            
           SUPPORT AND OPPOSITION  :
          Support:  Western Center on Law and Poverty (sponsor)
          American Cancer Society Cancer Action Network
                    Asian Americans Advancing Justice--Los Angeles
                    Asian Law Alliance 
                    Association of Regional Center Agencies 
                    California Advocates for Nursing Home Reform 
                    California Immigrant Policy Center 
                    California Pan-Ethnic Health Network
                    California Primary Care Association 
                    California State Council of Services Employees  
               International Union
                    Central California Legal Services, Inc. 
                    Children Now 
                    Children's Defense Fund - California 
                    Coalition of California Welfare Rights Organizations,  
               Inc. 
                    Community Action Fund of Planned Parenthood of Orange  
               and San Bernardino 
                         Counties 
                    Community Health Councils, Inc. 
                    County Health Executives Association of California 
                    Disability Rights California
                    Disability Rights Education and Defense Fund 
                    Health Access California 
                    Justice in Aging 








          AB 2394 (Eduardo Garcia)                          Page 8 of ?
          
          
                    LeadingAge California 
                    Legal Services of Northern California 
                    Local Health Plans of California
                    Maternal and Child Health Access 
                    National Association of Social Workers, California  
               Chapter
                    NAMI California 
                    National Health Law Program 
                    Planned Parenthood Action Fund of the Pacific  
               Southwest 
                    Planned Parenthood Action Fund of Santa Barbara,  
               Ventura and San Luis Obispo 
                                   Counties 
                    Planned Parenthood Advocacy Project Los Angeles County
                    Planned Parenthood Advocates Pasadena and San Gabriel  
               Valley
                    Planned Parenthood Affiliates of California
                    Planned Parenthood Mar Monte
                    Planned Parenthood Northern California Action Fund 
                    Project Inform 

          Oppose:   Anthem Blue Cross (unless amended)
                    California Ambulance Association 
                    California Association of Health Plans (unless  
                    amended)
                    Local Health Plans of California (unless amended)



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