BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 407 (Morrell) - Comprehensive Perinatal Services Program: licensed midwives ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 21, 2015 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 11, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: SB 407 would add licensed midwives to the list of health care providers who are authorized to provide services in the Comprehensive Perinatal Services Program. Fiscal Impact: One-time costs, less than $50,000, to revise existing regulations and develop a state plan amendment to allow licensed midwives to provide services in the Comprehensive Perinatal Services Program, under Medi-Cal (General Fund and federal funds). No significant impact to the utilization of services in the SB 407 (Morrell) Page 1 of ? Medi-Cal managed care program is anticipated. Under current law and practice, the services that are authorized under the Comprehensive Perinatal Services Program are required benefits for Medi-Cal managed care beneficiaries. Because those beneficiaries already have access to those services through managed care, it is not likely that adding an additional authorized provider will increased the utilization of those services. (For example, if a licensed midwife who is seeing a pregnant woman in Medi-Cal managed care wished to order a covered service, that midwife could simply work with another eligible practitioner to order the services.) Unknown potential increase in costs to provide services in the fee-for-service Medi-Cal system (local funds and federal funds). Under current practice, Medi-Cal beneficiaries in fee-for-service can receive Comprehensive Perinatal Services Program services from their health care provider. In the fee-for-service system, those costs are paid for with local funds and federal matching funds. The state does not provide General Fund support for those costs. It is possible that there could be an increase in the utilization of services under this bill, to the extent that Medi-Cal beneficiaries are being provided care by a licensed midwife and it is not easy for that provider to get another authorized provider to order the specified services. The extent to which the fact that licensed midwives are not eligible to provide the specified services is actually a barrier to women getting those services in not known, so it is difficult to estimate whether there would actually be an increase is service utilization. The bill does not create a new program or mandate a higher level of service (the legal test for whether a state mandate is reimbursable). Therefore, it is not likely that the state would be required to reimburse counties for any increased costs under the bill, even if utilization of services does increase. Background: Under state and federal law, the Department of Health Care Services operates the Medi-Cal program, which provides health care coverage to low income individuals, families, and children. Medi-Cal provides coverage to childless adults and parents with household incomes up to 138 percent of the federal poverty level and to children with household incomes up to 266 percent of the federal poverty level. The federal government provides matching SB 407 (Morrell) Page 2 of ? funds that vary from 50 percent to 90 percent of expenditures depending on the category of beneficiary. The Comprehensive Perinatal Services Program is an additional benefit provided through the Medi-Cal program. Under the Comprehensive Perinatal Services Program, pregnant and post-partum women are eligible for additional services, such as early entry into prenatal care, vitamins, case coordination, an additional post-partum visit, and other supportive services. All of those additional benefits are required to be provided, when appropriate, by Medi-Cal managed care plans. As noted above, Comprehensive Perinatal Services Program benefits in the Medi-Cal fee-for-service program are paid for using local funds and federal matching funds. Proposed Law: SB 407 would add licensed midwives to the list of health care providers who are authorized to provide services in the Comprehensive Perinatal Services Program. The bill would require the Department of Health Care Services to revise any existing regulations, as needed, beginning by March 1, 2016. -- END --