BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          SB 407 (Morrell) - Comprehensive Perinatal Services Program:   
          licensed midwives
          
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          |Version: April 21, 2015         |Policy Vote: HEALTH 9 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 11, 2015      |Consultant: Brendan McCarthy    |
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          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  







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            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  








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          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.




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