BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 296| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 296 Author: Cannella (R) Amended: 8/28/15 Vote: 21 SENATE HEALTH COMMITTEE: 9-0, 4/15/15 AYES: Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen, Pan, Roth, Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen SENATE FLOOR: 40-0, 6/1/15 AYES: Allen, Anderson, Bates, Beall, Berryhill, Block, Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk ASSEMBLY FLOOR: 79-0, 9/2/15 - See last page for vote SUBJECT: Medi-Cal: specialty mental health services: documentation requirements SOURCE: California Council of Community Mental Health Agencies DIGEST: This bill limits the scope of the service billing documentation requirements that the Department of Health Care Services (DHCS) may apply when conducting an audit of Medi-Cal specialty mental health (SMH) services, as specified. This bill also requires DHCS to consider further revisions to its service billing documentation requirements and to prepare, in SB 296 Page 2 consultation with counties, providers, and other stakeholders, and to submit to the Legislature a proposal to accomplish specified objectives. Assembly Amendments delete the requirement for DHCS to develop a single set of service billing documentation requirements, after consulting counties, providers, and other stakeholders, and instead require DHCS to limit the scope of service billing documentation requirements, when auditing Medi-Cal SMH services, to criteria specified in state regulations, letters, and directives; federal Medicaid terms and conditions; and in the state's Medicaid State Plan. ANALYSIS: Existing law: 1)Establishes the Medi-Cal program, administered by DHCS, under which qualified low-income individuals receive health care services. 2)Requires DHCS to create a standardized set of documentation standards and forms in order to facilitate the receipt of medically necessary SMH services by a foster child who is placed outside of his or her county of original jurisdiction. This bill: 1)Requires DHCS to limit the scope of any service billing documentation requirements to criteria clearly and explicitly set forth in any of the following: a) regulations, interpretive letters, and compliance directives sent by DHCS to counties in a previous fiscal year; b) federal terms and conditions of the Medicaid Program; and c) the Medicaid State Plan. 2)Requires an audit requirement that does not meet the criteria in 1) above to be considered an advisory finding only for which no disallowance can be made, unless DHCS modifies its regulations to make the audit requirement explicit, or provides an interpretive letter or other written clarification to counties that clearly prescribes the requirement. SB 296 Page 3 3)Prohibits DHCS from requiring a county or county contract provider to copy or reenter any unchanged information from a patient's existing care record into any subsequent progress note, assessment, or treatment plan for that patient, unless explicitly required by a federal directive. 4)Requires a DHCS regulation, interpretive letter, compliance directive, or audit requirement relating to service billing documentation to allow counties and county contract providers, when documenting a patient's treatment, to incorporate by reference any information from the patient's entire case record, including, but not limited to, assessments, treatment plans, evaluations, and progress notes. 5)Requires DHCS to consider further revisions to its service billing documentation requirements to minimize the time and paperwork required of counties and providers, consistent with federal standards, and to eliminate duplicative or obsolete requirements. 6)Requires DHCS to submit a proposal to the Legislature, to accomplish the requirements in 5) above, in the same fiscal year that DHCS submits to the federal Centers for Medicare and Medicaid Services (CMS) its proposal to revise the billing method for mental health services from the current practice of billing by the minute to a system that provides for greater documentation streamlining, including, but not limited to, a capitated system. Requires DHCS, in preparing the proposal, to consult with counties, providers, and other stakeholders. Comments 1)Author's statement. According to the author, SB 296 is necessary because it would get rid of the concern from mental health officials and the community agencies they contract with that the state's interpretation of the guidelines in audits might disallow some services if the additional documentation were not included. While the state guidelines on billing are not much different from other states, counties have added so many requirements that it takes up to 20 minutes of documentation to prepare progress notes on things like SB 296 Page 4 psychotherapy, while in other states it takes five minutes. This costs manpower and money to the state and counties. SB 296 would end this pattern by creating a single set of documentation requirements developed by the state, in consultation with counties and providers, that limits audit disallowances to circumstances clearly spelled out in the requirements, and is designed to be the minimum documentation requirements necessary to comply with federal law and other applicable state laws. 2)CMS requirements for reimbursement. Behavioral health services must meet specific requirements for reimbursement. Documented services must: a) Meet that state's Medicaid program rules; b) To the extent required under state law, reflect medical necessity and justify the treatment and clinical rationale (each state adopts its own medical necessity definition); c) To the extent required under state law, reflect active treatment; d) Be complete, concise, and accurate, including the face-to-face time spent with the patient (for example, the time spent to complete a psychosocial assessment, a treatment plan, or a discharge plan); e) Be legible, signed, and dated; f) Be maintained and available for review; and, g) Be coded correctly for billing purposes. CMS states that a reason for documenting medical services is to comply with federal and state laws, which require proper support for billed claims. In addition, CMS states that documentation done well can help protect a behavioral health practitioner from billing disallowances. 3)State SMH service reimbursement. In order to receive reimbursement for SMH services, the current contracts that SB 296 Page 5 counties have with the state require medical necessity to be met for the service as documented on an assessment with an International Classification of Diseases or Diagnostic and Statistical Manual of Mental Disorders diagnosis, a treatment plan with objectives/interventions and client participation, and progress notes with the intervention and response of the client. According to the County Behavioral Health Directors Association of California (CBHDAC), counties, as the contracting entity with mental health plans (MHPs), need to have the ability to impose greater documentation to meet requirements based on: a) The need for authorization or the need for service; b) Risk, (e.g. the Los Angeles County Blue Ribbon Commission mandate to assess for self-harm vulnerability risk); c) The need for ongoing flex funds for a particular client; or d) Documentation-related practice mandates (entering data into the Managing and Adapting Practice [MAP] database dashboard at the end of each MAP session). If counties have additional documentation requirements, according to CBHDAC, it is usually based on other funding requirements and/or special interests by the boards of supervisors, Blue Ribbon Commissions, courts, or other state departments. 4)DHCS billing disallowances. In a presentation document DHCS shared at the California Mental Health Directors Association All Directors Meeting on January 9, 2014, DHCS noted that in Fiscal Years (FY) 2007-2013, disallowance rates for outpatient chart reviews of a sampling of MHPs increased, with the most notable increase occurring between FYs 2011-12 (26%) and 2012-2013 (36%). DHCS noted that the increase may have been attributed to the inclusion of children/adolescents data in the sample. Prior to FY 2011-12, the triennial outpatient chart samples consisted of adults only, and there were separate Early and Periodic Screening, Diagnostic, and SB 296 Page 6 Treatment chart audits conducted. In addition, with the inclusion of children/adolescents and the resulting Day Treatment Intensive (DTI) and Day Rehabilitation (DR) paid claims in the same sample, DHCS notes that the disallowance rates increased. DHCS's presentation document also noted that 90% of the DTI and DR claims were disallowed in FY 2011-12. Primary reasons for disallowances were due to provider documentation error, such as lack of required service components, no documentation of attendance, absence of required progress notes, medical necessity not substantiated, and not meeting program Medi-Cal certification requirements. 5)Lack of evidence-based/best practice service provision for behavioral health. The Technical Assistance Collaborative/Human Services Research Institute's final report in February 2012, California Mental Health and Substance Use System Needs Assessment, notes that the percent of individuals reported to be receiving an evidence-based practice service was low: only one percent in 2010, down from two percent in 2009. It also notes that there is a variability among counties in the use and training of staff in state-of-the-art and evidence-based and recovery-oriented treatment; there is a need to address better preparation of physical health providers to engage and treat people with behavioral health needs; and there is still disproportionate access to behavioral health services on the part of certain ethnic populations-compounded by the relative lack of cultural/linguistic capacity among providers and practitioners in the state. 6)Opposition. The opposition listed below is based upon the previous version. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Assembly Appropriations Committee, potential administrative staff costs to DHCS in the range of several hundred thousand dollars in staff costs for at least one to two years. SUPPORT: (Verified9/2/15) SB 296 Page 7 California Council of Community Mental Health Agencies (source) American Association for Marriage and Family Therapy California Division California Chapter of the American College of Emergency Physicians California Coalition for Mental Health Mental Health America of California Pacific Clinics Steinberg Institute OPPOSITION: (Verified9/2/15) Department of Finance ARGUMENTS IN SUPPORT: Supporters of this bill argue that paperwork reduction is one great way of increasing the efficiency of the health care system while helping to improve outcomes. The California Chapter of the American College of Emergency Physicians states that individual counties across the state have their own documentation requirements, adding substantially to the amount of time Medi-Cal providers spend documenting their services. The American Association for Marriage and Family Therapy California Division argues that paperwork overload contributes to workplace fatigue and that this bill will improve the morale of mental health workers. ASSEMBLY FLOOR: 79-0, 9/2/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, SB 296 Page 8 Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Jones-Sawyer Prepared by:Reyes Diaz / HEALTH / 9/2/15 18:56:24 **** END ****