BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 296 (Cannella) - Medi-Cal: specialty mental health services: documentation requirements ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 20, 2015 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 4, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 296 would require the Department of Health Care Services to develop a single set of billing documentation requirements for use by counties in the provision of specialty mental health services in the Medi-Cal program. Fiscal Impact: Likely one-time costs up to $150,000 to consult with stakeholders, develop the documentation guidelines, and adopt regulations (General Fund and federal funds). No significant impact on local mental health plans is expected (local funds). Under current law, Medi-Cal specialty mental health services are provided through county mental health SB 296 (Cannella) Page 1 of ? plans. Under this bill, those mental health plans would be required to use the documentation requirements developed under the bill. It is not likely that creating uniform documentation requirements will significantly increase local administrative costs or significantly change the utilization of services. Background: Under state and federal law, the Department of Health Care Services operates the Medi-Cal program, which provides health care coverage to pregnant women, children and their parents with low incomes, as well as blind, disabled, and certain other populations. Generally, the federal government provides a 50 percent federal match for state expenditures. Pursuant to the federal Affordable Care Act, California has opted to expand eligibility for Medi-Cal up to 138 percent of the federal poverty level and to include childless adults. The Affordable Care Act provides a significantly enhanced federal match for the Medi-Cal expansion. Under the law, the federal government will pay for 100 percent of the cost of the Medi-Cal expansion in 2013-14, declining to a 90 percent federal match in the 2020 federal fiscal year and thereafter. Under current law and practice, specialty mental health services for Medi-Cal beneficiaries with serious mental illness are provided through county mental health plans. The non-federal share of the costs for those services are paid for with county funds, such as realignment funds. Proposed Law: SB 296 would require the Department of Health Care Services to develop a single set of billing documentation requirements for the provision of specialty mental health services in the Medi-Cal program. The bill requires the Department to develop billing documentation requirements that minimize time and paperwork required of counties and providers and that eliminate duplicative requirements. SB 296 (Cannella) Page 2 of ? The bill requires the billing documentation requirements to be developed by January 1, 2017 for use beginning on July 1, 2017. Upon adoption of the billing standards, the bill would prohibit counties from requiring additional billing documentation standards for specialty mental health services. -- END --