BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 276 (Wolk) - Medi-Cal:  local educational agencies
          
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          |Version: April 20, 2015         |Policy Vote: HEALTH 8 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 4, 2015       |Consultant: Brendan McCarthy    |
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          This bill meets the criteria for referral to the Suspense File.



          


          Bill  
          Summary:  SB 276 would require the Department of Health Care  
          Services to seek federal funding for additional covered services  
          that are provided to Medi-Cal beneficiaries by local educational  
          agencies.


          Fiscal  
          Impact:  
           One-time administrative costs of about $250,000 to develop a  
            state plan amendment and make system changes by the Department  
            of Health Care Services (General Fund and federal funds).

           No additional General Fund costs for administering the  
            program. Under current practice, the Department of Health Care  
            Services retains a small portion of the available federal  
            matching funds to pay for state administrative costs.







          SB 276 (Wolk)                                          Page 1 of  
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           Unknown additional federal funding to local educational  
            agencies to pay for services to Medi-Cal beneficiaries  
            (federal funds). Recent federal guidance expands the  
            availability of federal matching funds for health care  
            services provided by local education agencies. This bill would  
            amend state law to allow local education agencies to draw down  
            additional federal funding. Under current law, the non-federal  
            share of costs is provided by local education agencies. There  
            is no General Fund contribution to the program. 


          Background:  Under current law, local educational agencies who provide  
          covered health care services to certain Medi-Cal beneficiaries  
          can seek federal matching funds (generally 50%) to offset some  
          of their costs. 
          Federal guidance formerly limited federal matching funds for  
          "free care" - that is services provided to the public without  
          charge. In the case of schools, this meant that local education  
          agencies could only seek federal matching funds for up to 24  
          services per 12 month period when services are generally  
          available to students. There was an exception for services  
          provided under an Individualized Education Plan or an Individual  
          Family Service Plan (both of which are plans to provide services  
          to students with developmental disabilities). 


          In December 2014, the federal government released new guidance  
          on "free care". Under the new guidance, federal matching funds  
          are available for all eligible services provided to Medi-Cal  
          beneficiaries, even if the services are provided without charge.  
          This policy change eliminated the limitation of 24 services per  
          12 months for all Medi-Cal eligible students. The federal  
          guidance requires Medi-Cal to continue to be the payer of last  
          resort, so that if a Medi-Cal beneficiary also has other health  
          care coverage (for example a student with Medi-Cal coverage who  
          is also covered under a parent's health care coverage), the  
          local education agency would have to bill the other coverage  
          first. 




          Proposed Law:  








          SB 276 (Wolk)                                          Page 2 of  
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            SB 276 would require the Department of Health Care Services to  
          seek federal funding for additional covered services that are  
          provided to Medi-Cal beneficiaries by local educational  
          agencies.
          The bill would require local educational agencies to take all  
          reasonable measures to pursue claims against third party  
          coverage. The bill would require a liable third party to either  
          pay the claim from a local educational agency or provide notice  
          that the claim is denied. If there is no response from the  
          legally liable third party within 45 days, the local educational  
          agency could bill Medi-Cal for the service.




          Staff  
          Comments:  In 2009-10, local educational agencies received $130  
          million in federal funding under this program. Since that level  
          of funding was limited by federal policy, the total federal  
          funding that may be available to local educational agencies  
          under this bill could be significantly larger.


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