BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 2394 --------------------------------------------------------------- |AUTHOR: |Eduardo Garcia | |---------------+-----------------------------------------------| |VERSION: |June 14, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |June 22, 2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Scott Bain | --------------------------------------------------------------- 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 : ----------------------------------------------------------------- |Assembly Floor: |78 - 0 | |------------------------------------+----------------------------| |Assembly Appropriations Committee: |20 - 0 | |------------------------------------+----------------------------| |Assembly Health Committee: |19 - 0 | | | | ----------------------------------------------------------------- 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) -- END --