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
          
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          |Version: April 20, 2015         |Policy Vote: HEALTH 9 - 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 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  
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            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  
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          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.




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