BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 586    
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          |AUTHOR:        |Hernandez                                      |
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          |VERSION:       |February 26, 2015                              |
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          |HEARING DATE:  |April 22, 2015 |               |               |
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          |CONSULTANT:    |Scott Bain                                     |
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           SUBJECT  :  Children's services

           SUMMARY  : Requires the Department of Health Care Services (DHCS) to enter  
          into contracts with one or more Kids Integrated Delivery System  
          (KIDS) authorized by this bill to provide the full range of  
          California Children's Services Program (CCS) and Medi-Cal  
          services to children eligible for the CCS and Medi-Cal. Allows  
          an individual on Medi-Cal who is up to 26 years of age who was  
          previously treated for a CCS-eligible condition in the twelve  
          months prior to his or her 21st birthday to remain in a KIDS  
          plan that accepts individuals up to age 26 under its contract  
          with DHCS. Makes permanent, the CCS "carve out" of CCS services  
          from Medi-Cal managed care, except for existing counties and for  
          the newly created KIDS established by this bill.
          
          Existing law:
          1.Establishes the Medi-Cal Program, administered by DHCS, which  
            provides comprehensive health benefits to low-income children  
            up to 266 percent of the federal poverty level (FPL), parents  
            and adults up to 138 percent of the FPL, pregnant women, and  
            elderly, blind or disabled persons, who meet specified  
            eligibility criteria.

          2.Establishes the CCS Program to provide specified medical care  
            and therapy services to children with eligible conditions.

          3.Authorizes the state to contract for comprehensive managed  
            health care services for Medi-Cal beneficiaries, and to  
            require mandatory enrollment of Medi-Cal beneficiaries in  
            specified eligibility categories into managed care plans.

          4.Prohibits CCS covered services from being be incorporated into  
            any Medi-Cal managed care contract entered into after August  







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            1, 1994 until January 1, 2016, except for contracts entered  
            into for county organized health systems or Regional Health  
            Authority in the Counties of San Mateo, Santa Barbara, Solano,  
            Yolo, Marin, and Napa. This is known as the CCS "carve out."

          5.Requires the Director of DHCS to establish, by January 1,  
            2012, organized health care delivery models for CCS-eligible  
            children. Requires these models to be chosen from the  
            following:

                  a.        An enhanced primary care case management  
                    program;
                  b.        A provider-based accountable care  
                    organization;
                  c.        A specialty health care plan; or,
                  d.        A Medi-Cal managed care plan that includes  
                    payment and coverage for CCS-eligible conditions.

          
          This bill:
          1.Permanently extends the CCS "carve out" from Medi-Cal managed  
            care except for either or both of the following:

                  a.        Contracts entered into for county organized  
                    health systems or Regional Health Authority in San  
                    Mateo, Santa Barbara, Solano, Yolo, Marin, and Napa  
                    counties; or,
                  b.        Contracts entered into under this bill  
                    establishing a KIDS.

          2.Requires, no later than January 1, 2018, in counties or  
            regions where there is no CCS demonstration project, DHCS to  
            select and enter into contracts with one or more Kids  
            Integrated Delivery System (KIDS), to provide comprehensive  
            health care services to eligible children. 

          3.Defines a "KIDS" as an entity selected by DHCS to coordinate  
            and manage the provision of Medi-Cal and CCS services for  
            eligible children, on a county or regional basis, consistent  
            with managed care principles, techniques, and practices, to  
            ensure access to cost-effective, quality care for enrolled  
            children. Permits KIDS plan to include either of the following  
            organizational models:

                  a.        An entity coordinated through a children's  








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                    hospital with a shared governance structure comprised  
                    of providers who are held jointly accountable for  
                    achieving measured quality improvements and reductions  
                    in the rate of spending growth for Medi-Cal services  
                    for enrolled children; or,
                  b.        An entity coordinated by a CCS-approved  
                    provider with a shared governance structure comprised  
                    of providers, including participation by at least one  
                    children's hospital, who are held jointly accountable  
                    for achieving measured quality improvements and  
                    reductions in the rate of spending growth for Medi-Cal  
                    services for enrolled children.

          4.Defines an "eligible child" for the purposes of KIDS to mean  
            either of the following:

                  a.        A minor child under 21 years of age, who is  
                    eligible for both Medi-Cal and CCS, except for those  
                    children eligible under CCS for neonatal intensive  
                    care services; and,
                  b.        An individual up to 26 years of age, if the  
                    individual was previously treated for a CCS-eligible  
                    condition in the twelve months prior to his or her  
                    21st birthday, is eligible for full-scope Medi-Cal  
                    services, and voluntarily chooses to remain in a KIDS  
                    plan that accepts individuals up to age 26 under its  
                    contract with DHCS.

          5.Requires a KIDS plan to contract with DHCS to coordinate,  
            integrate, and provide or arrange for the full range of  
            Medi-Cal and CCS services to eligible children enrolled in the  
            KIDS plan.

          6.Requires a KIDS plan contract to exclude, at a minimum,  
            specialty mental health services provided by county mental  
            health plans and neonatal intensive care (NICU) services.  
            Permits a KIDS contract to exclude other Medi-Cal services, as  
            determined by DHCS, including, but not limited to, long-term  
            care, transplantation, and dental services;




          7.Permits benefits of the CCS Medical Therapy Program to be  
            provided or coordinated by a KIDS plan, in collaboration and  








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            consultation with the designated county CCS agency or agencies  
            in the KIDS plan service area;

          8.Requires a KIDS plan to:

                  a.        Provide services to enrollees through a  
                    team-based, patient-centered health home model, ensure  
                    that enrolled children receive services in the most  
                    appropriate and least restrictive setting, and adopt  
                    effective strategies to manage and coordinate care and  
                    services for enrolled children;
                  b.        Report and comply with quality measures,  
                    including, but not limited to, Medi-Cal Healthcare  
                    Effectiveness Data and Information Set (HEDIS)  
                    measures appropriate for enrolled children, the  
                    national Pediatric Quality Measurement System for  
                    children's hospitals, and other quality measures  
                    developed by DHCS in consultation with stakeholders;
                  c.        Participate in a nationally recognized  
                    pediatric patient safety organization;
                  d.        Comply with readiness criteria, network  
                    adequacy standards, and other appropriate standards  
                    applicable to Medi-Cal managed care plans, as  
                    determined by DHCS in consultation with stakeholders,  
                    and any terms of the federal approvals obtained by  
                    DHCS; and,
                  e.        Establish and maintain a family advisory  
                    council composed of families of eligible children and  
                    convene the advisory council at least quarterly.

          9.Requires DHCS to give special consideration in the KIDS  
            selection process to entities that meet specified criteria,  
            including an entity that demonstrates experience in  
            effectively serving eligible children and providing services  
            in compliance with CCS program standards and requirements,  
            that includes in the plan a sufficient number of CCS-paneled  
            providers to ensure continuity of care and timely access to  
            quality services, that develops the KIDS plan through a local  
            collaborative stakeholder process, and that incorporates  
            specific strategies to actively engage families as partners in  
            decisions affecting the health care and well-being of children  
            enrolled in the KIDS plan.

          10.Permits contracts with KIDS plans to include opportunities to  
            share in the risk of providing services to KIDS enrollees  








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            under an agreement between DHCS and the KIDS plan. Requires  
            any shared savings that result from these arrangements to be  
            reinvested in services provided to children enrolled in the  
            KIDS plan.

          11.Prohibits DHCS from entering into risk-sharing arrangements  
            with a KIDS plan for specific covered services unless the KIDS  
            plan is responsible for the management and authorization of  
            those services.

          12.Requires payments to a KIDS plan that agrees to accept  
            risk-sharing to be actuarially sound.

          13.Requires eligibility for enrollment in a KIDS plan to be  
            determined in accordance with all of the following:

                  a.        Requires children to be deemed eligible for  
                    enrollment in a KIDS plan based on eligibility for the  
                    CCS program, except a child receiving NICU services is  
                    be eligible for enrollment until the child is  
                    discharged from the NICU and meets other requirements;  
                    and,
                  b.        Requires eligible children to be enrolled on a  
                    mandatory basis, to the extent that DHCS obtains  
                    federal approval to require eligible children to  
                    enroll in an available KIDS plan in order to receive  
                    Medi-Cal and CCS services. 

          14.Requires enrollment in a KIDS plan to be, at a minimum, for  
            the period of a child's CCS eligibility plus an additional six  
            months, provided that the child remains eligible for Medi-Cal.  


          15.Allows KIDS plan enrollees who continue to remain eligible  
            for Medi-Cal to remain in the KIDS plan for up to 12 months  
            following the termination of CCS eligibility if the KIDS  
            program and the parent, guardian or person responsible for  
            care of the child agree that it is in the best interests of  
            the child.

          16.Requires the child to be enrolled in the available KIDS plan,  
            if a KIDS plan becomes newly available in a service area, or  
            if a child becomes newly eligible for a KIDS plan. 

          17.Requires DHCS to determine, in consultation with counties,  








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            KIDS plans, local KIDS family advisory councils, and existing  
            Medi-Cal managed care plans in the service area, the timing  
            and process for enrollment in KIDS plans to ensure a smooth  
            transition for eligible children.

          18.Permits the parent, guardian, or person responsible for the  
            care of the eligible child to select the KIDS plan in which  
            the child will be enrolled if there is more than one KIDS plan  
            in the county or region in which the child lives. Requires the  
            child to be assigned to a KIDS plan in a manner that ensures  
            the least disruption in existing patient-provider  
            relationships if the family does not select a KIDS plan.

          19.Requires, upon enrollment of an eligible child in a KIDS  
            plan, the parent, guardian, or person responsible for the care  
            of the child to be informed that the child may choose to  
            continue an established patient-provider relationship if his  
            or her treating provider is a primary care provider or clinic  
            contracting with the KIDS, has the available capacity, and  
            agrees to continue to treat that eligible child. Requires KIDS  
            plans to comply with a continuity of care requirement  
            applicable to health plans.

          20.Requires, within 30 days of notice that a child is no longer  
            eligible for a KIDS plan, a child who continues to be eligible  
            for Medi-Cal to be enrolled in the Medi-Cal delivery system in  
            the county in which he or she resides. Requires DHCS to ensure  
            that families receive information about the Medi-Cal delivery  
            systems available in their county and the process for  
            enrolling in and selecting among the available options. 

          21.Requires, when children are disenrolling from a KIDS plan  
            because they are no longer eligible, children to be enrolled  
            in Medi-Cal delivery systems as follows:

                  a.        Requires the child to be enrolled in the  
                    Medi-Cal managed care plan if there is a Medi-Cal  
                    managed care plan in the county of the child's  
                    residence;
                  b.        Requires, if the family does not choose a plan  
                    for the child within 30 days of notice of  
                    disenrollment from the KIDS in counties where there is  
                    more than one Medi-Cal managed care plan, the child to  
                    be enrolled into the Medi-Cal managed care health plan  
                    that contains his or her primary care provider.  








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                    Requires the child to be assigned to one of the health  
                    plans containing his or her primary care provider in  
                    accordance with the assignment process applicable in  
                    the county if the primary care provider participates  
                    in more than one managed care health plan in the  
                    county; and,
                  c.        Requires, in a county that is not a managed  
                    care county, children no longer eligible for KIDS to  
                    be provided services under the Medi-Cal  
                    fee-for-service (FFS) delivery system.

          22.Requires DHCS to instruct KIDS plans, counties, and managed  
            care plans, by means of all-county and all-plan letters or  
            similar instruction, as to the processes to be used to enroll  
            and disenroll children in KIDS plans and to re-enroll eligible  
            children in local Medi-Cal coverage options, to ensure each  
            child experiences a smooth transition among coverage types  
            with no gap in coverage or care.

          23.Requires that a child who is enrolled in a KIDS plan to  
            retain all rights to CCS program appeals and fair hearings of  
            denials of medical eligibility or of service authorizations.

          24.Requires DHCS to seek all necessary federal approvals to  
            ensure federal financial participation in expenditures under  
            this section. Prohibits the KIDS provisions of this bill from  
            being implemented until necessary federal approvals have been  
            obtained.

          25.Permits DHCS to seek federal approval to require all eligible  
            children to enroll in an available KIDS plan during the length  
            of their eligibility for CCS plus an additional six months.  
            Permits a child to voluntarily remain in the KIDS for up to 12  
            months following termination of CCS eligibility if the child  
            remains Medi-Cal-eligible.

          26.Makes legislative findings and declarations regarding CCS,  
            and states legislative intent to modernize the CCS program  
            through development of specialized integrated delivery systems  
            focused on the unique needs of CCS-eligible children, and to  
            protect the unique access to pediatric specialty services  
            provided by CCS while promoting modern organized delivery  
            systems to meet the medical care needs of eligible children.

           FISCAL  








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          EFFECT  :  This bill has not been analyzed by a fiscal committee.

           COMMENTS :
          1.Author's statement.  According to the author, this bill  
            authorizes the creation of KIDS to improve and modernize the  
            CCS program. CCS provides diagnosis, treatment, and case  
            management to approximately 180,000 medically fragile children  
            under the age of 21 with complex medical needs who meet  
            certain eligibility criteria. CCS has been carved out of  
            Medi-Cal managed care since 1993 because the Legislature  
            recognized this population required a unique approach. In the  
            twenty-three years since that time, the carve-out has been  
            extended numerous times, and the state has engaged in  
            periodic, unsuccessful, efforts to modernize the program.  
            December 31, 2015 marks the end of the current carve-out and  
            the Administration has clearly signaled that they will support  
            an extension of the carve-out only if it is accompanied by a  
            plan for a more organized delivery system. This bill provides  
            that system. This bill extends the carve-out, preserves the  
            CCS standards of care, and creates networks responsible for  
            providing or coordinating all medical care services to CCS  
            children through a patient-centered medical home, thus  
            improving coordination between primary and specialty care  
            services for beneficiaries. Additionally, the bill requires  
            CCS providers to work collaboratively with each other and  
            families, in order to ensure CCS children continue to receive  
            access to the highest quality care.


          2.CCS. The CCS program provides diagnostic and treatment  
            services, medical case management, and physical and  
            occupational therapy health care services to children under 21  
            years of age with CCS-eligible conditions (e.g., severe  
            genetic diseases, chronic medical conditions, infectious  
            diseases producing major sequelae, and traumatic injuries)  
            from families unable to afford catastrophic health care costs.  
            A child eligible for CCS must be a resident of California,  
            have a CCS-eligible condition, and be in a family with an  
            adjusted gross income of $40,000 or less in the most recent  
            tax year. Children in families with higher incomes may still  
            be eligible for CCS if the estimated cost of care to the  
            family in one year is expected to exceed 20 percent of the  
            family's adjusted gross income. 

          The CCS program is administered as a partnership between county  








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            health departments and DHCS. In counties with populations  
            greater than 200,000 (independent counties), county staff  
            perform all case management activities for eligible children  
            residing within their county. This includes determining all  
            phases of program eligibility, evaluating needs for specific  
            services, determining the appropriate provider(s), and  
            authorizing for medically necessary care. For counties with  
            populations under 200,000 (dependent counties), the Children's  
            Medical Services Branch of DHCS provides medical case  
            management and eligibility and benefits determination through  
            its regional offices. CCS authorizes and pays for specific  
            medical services and equipment provided by CCS-approved  
            specialists. CCS rates for physician services provided under  
            CCS are reimbursed at rates which are 39.7 percent greater  
            than applicable Medi-Cal rate. CCS hospital inpatient rates  
            are the same as those in Medi-Cal.

          As of January, 2010, there were 178,530 children enrolled in  
            CCS. According to DHCS, 90 percent of CCS enrollees are also  
            eligible for Medi-Cal and 10 percent were CCS-only or were  
            covered by other insurance.


          3.Medi-Cal managed care and the CCS carve out. Most Medi-Cal  
            beneficiaries, including children, are required to enroll in  
            Medi-Cal managed care plans. However, for children who are  
            enrolled in both Medi-Cal and CCS, CCS services were carved  
            out of Medi-Cal managed care pursuant to SB 1371 (Bergeson),  
            Chapter 917, Statutes of 1994. Under the carve out,  
            CCS-covered services for CCS-eligible children are not  
            incorporated into Medi-Cal managed care, and are instead  
            provided and paid for on a FFS basis through the CCS Program.  
            The initial carve out under SB 1371 was for three years. The  
            CCS carve out has been extended repeatedly since then, usually  
            for three or four year periods. The first extension allowed  
            the COHS in the counties of San Mateo, Santa Barbara, Solano,  
            and Napa to include CCS services. Later extensions also  
            allowed Yolo and Marin counties to include CCS services. DHCS  
            indicates the division of payment and care between CCS and the  
            primary Medi-Cal managed care plan has posed challenges,  
            including delays in care for children, fragmentation and a  
            lack of coordination, and increased cost to the state.


          4.Medi-Cal Waiver and CCS pilots. SB 208 (Steinberg), Chapter  








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            714, Statutes of 2010, was one of two bills in 2010  
            implementing the 2010 Medi-Cal waiver renewal. One provision  
            of SB 208 was a requirement that the DHCS director establish,  
            by January 1, 2012, organized health care delivery models for  
            CCS-eligible children, from four specified models. Five  
            demonstration applicants (San Mateo Health Plan, Alameda  
            County, LA Care, Children's Hospital Orange County, and Rady  
            Children's Hospital in San Diego) were approved in 2011, but  
            only the San Mateo Health Plan pilot has been implemented. The  
            Rady Children's Hospital in San Diego is for a subset of  
            CCS-eligible children with specified conditions but it has not  
            been implemented. 


          5.CCS Redesign Stakeholder Advisory Board.  DHCS has implemented  
            a stakeholder process to investigate potential improvements or  
            changes to the CCS program in partnership with the UCLA Center  
            for Health Policy Research. A CCS Redesign Stakeholder  
            Advisory Board (RSAB) composed of individuals from various  
            organizations and backgrounds with expertise in both the CCS  
            program and care for children and youth with special health  
            care needs, was assembled in September of 2014 to lead this  
            process. According to DHCS, the CCS RSAB goals are to: 

             a.   Implement Patient and Family Centered Approach:  provide  
                                                          comprehensive treatment, and focus on the whole-child  
               rather than only their CCS eligible conditions. 

             b.   Improve Care Coordination through an Organized Delivery  
               System:  provide enhanced care coordination among primary,  
               specialty, inpatient, outpatient, mental health, and  
               behavioral health services through an organized delivery  
               system that improves the care experience of the patient and  
               family. 

             c.   Maintain Quality:  ensure providers and organized  
               delivery systems meet quality standards and outcome  
               measures specific to the CCS population. 

             d.   Streamline Care Delivery:  improve the efficiency and  
               effectiveness of the CCS health care delivery system. 

             e.   Build on Lessons Learned:  consider lessons learned from  
               current pilots and prior reform efforts, as well as  
               delivery system changes for other Medi-Cal populations. 








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             f.   Cost-Effective:  ensure costs are no more than the  
               projected cost that would otherwise occur for CCS children,  
               including all state-funded delivery systems.  Consider  
               simplification of the funding structure and value-based  
               payments, to support a coordinated service delivery  
               approach. 

          1.Related legislation. AB 187 (Bonta), would extend the CCS  
            carve out until DHCS has completed evaluations of the CCS  
            pilot programs established under SB 208. 

          2.Prior legislation. 
             a.   AB 301 (Pan), Chapter 460, Statutes of 2011, extended  
               the CCS carve out sunset date from January 1, 2012, to  
               January 1, 2016. 

             b.   SB 208 (Steinberg), Chapter 714, Statutes of 2010,  
               implemented the new 2010 Medi-Cal Section 1115 Waiver, and  
               required DHCS to establish a pilot project and seek  
               proposals to test four models exploring potential options  
               to redesign the CCS Program.

             c.   AB 2379 (Chan), Chapter 333, Statutes of 2007, extended  
               the CCS carve out sunset date from August 1, 2008, to  
               January 1, 2012.

             d.    SB 1103 (Committee on Budget and Fiscal Review),  
               Chapter 228, Statutes of 2004, extended the sunset on the  
               carve-out from August 1, 2005 to September 1, 2008. 

             e.   AB 3049 (Committee on Health), Chapter 536, Statutes of  
               2002, extended the CCS carve out sunset on the carve-out  
               from August 1, 2003 to August 1, 2005 and added COHS in  
               Yolo and Marin counties to the list of exceptions to the  
               carve-out.  

             f.   AB 1107 (Cedillo), Chapter 146, Statutes of 1999,  
               extended the CCS carve out sunset date until August 1,  
               2003.  

             g.   AB 469 (Papan) of 1999 would have allowed Medi-Cal  
               beneficiaries in the CCS Program to disenroll from  
               mandatory managed care if certain conditions are met.  AB  
               469 was vetoed by then Governor Davis.








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             h.   SB 391 (Solis), Chapter 294, Statutes of 1997, extended  
               the CCS carve-out until August 1, 2000, except for  
               contracts entered into for COHS in the counties of San  
               Mateo, Santa Barbara, Solano, and Napa.  

             i.   SB 1371 (Bergeson), Chapter 917, Statutes of 1994,  
               required that CCS-eligible services be carved out of any  
               Medi-Cal managed care contract until three years after the  
               effective date of the contract.  
          
          3.Support. This bill is sponsored by the California Children's  
            Hospital Association (CCHA), which argues this bill would  
            protect CCS and create KIDS to modernize the delivery system.  
            CCHA argues the KIDS networks will use a whole child approach  
            to health care, improving coordination between primary and  
            specialty care services while retaining the high quality  
            health care available through CCS because the CCS program will  
            only remain statutorily carved out of Medi-Cal managed care  
            until the end of 2015. CCHA argues this bill is a thoughtful,  
            provider driven, patient-centered approach that preserves the  
            positive aspects of the CCS program while creating a delivery  
            system tailored to the needs of children with complex medical  
            needs and their families. CCHA states KIDS networks would be  
            responsible for providing primary and specialty medical care  
            services to enrolled children through a team-based,  
            patient-centered health home model in the least restrictive,  
            most appropriate setting. CCHA argues this bill would ensure  
            that CCS standards are retained to ensure pediatric expertise,  
            preserve access to high quality providers, and ensure that  
            families are involved in decisions around the medical care  
            provided to their children, CCS providers would be required to  
            work together in order to improve care coordination and health  
            outcomes, and the regional system of care comprised of CCS  
            hospitals, physicians, and special care centers benefit not  
            only those children who receive services through CCS as these  
            same providers form the regional backbone for all pediatric  
            specialty care in California for children who are privately  
            insured as well as those receiving government-subsidized care.  


            Western Center on Law & Poverty (WCLP) writes in support that  
            it hopes that coordinating the care of these vulnerable  
            children with existing CCS providers and requirements for  
            coordinating, integrating and arranging for both Medi-Cal and  








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            CCS services will provide better care than the current  
            bifurcated system. WCLP argues the provision of the bill which  
            allows an individual to continue to receive services through a  
            KIDS plan up to the age of 26 is very important as when  
            CCS-eligible children turn 21, they have a very difficult  
            transition off of the program and difficulty forming an  
            appropriate network of specialty providers. WCLP writes that  
            this bill allows KIDS plans to have the opportunity to share  
            in the risk of providing the services, and whether plans  
            decide to assume risk or not, WCLP urges that the plans be  
            subject to Knox-Keene requirements, preferably through  
            licensure but at a minimum through contract. WCLP states  
            Knox-Keene includes innumerable consumer protections from  
            required benefits to grievance, appeal and Independent Medical  
            Review procedures. WCLP also writes that it supports the  
            request by Disability Rights California to ensure that  
            Medi-Cal due process rights apply and it appreciates the  
            author's willingness to add language to that effect.

          9.Support if Amended. Disability Rights California (DRC) writes  
            it supports the provisions of this bill having all services  
            delivered through a managed care plan consisting of  
            CCS-paneled physicians and special care centers, continuing  
            CCS eligibility up to age 26 as this option addresses the  
            unique and very difficult transition problems faced by  
            children "aging out" of CCS, and the provisions providing for  
            continuing coverage through a KIDS. DRC argues Medi-Cal due  
            process and fair hearing rights under the Medi-Cal program  
            should apply, including Medicaid managed care regulations. DRC  
            also urges any initial period of managed care not be at risk  
            and be used as a means of establishing actuarial data. DRC  
            concludes that if the KIDS are not Knox-Keene licensed, then  
            relevant Knox-Keene consumer protections be incorporated into  
            any contract. 

         10.Opposition. The American Academy of Pediatrics, California  
            (AAPC) writes in opposition that children with CCS-eligible  
            conditions are among the most vulnerable in the state, and the  
            state should not decide upon a specific model for redesign of  
            this essential system of care in advance of data currently  
            being collected and a robust stakeholder process that is  
            underway. AAPC argues that changing to a new model requires  
            policies/elements that cannot be fully understood until the  
            pilots and stakeholder process are complete and  
            recommendations are available to those involved. 








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            The California Association for Health Services at Home  
            (CAHSAH) argues that it is concerned about the impact of  
            managed care expansions on home and community-based services,  
            especially given the problems that have already occurred with  
            the Coordinated Care Initiative (CCI). CAHSAH argues managed  
            care entities do not understand the home health services of  
            this unique population, and they have experienced denials of  
            care and delayed authorizations that were approved under  
            Medi-Cal FFS. CAHSAH argues managed care delivery systems  
            reimbursement rates must take into account the acuity level  
            differences in this population, the need for a long-term  
            guarantee of coverage to beneficiaries, timely authorizations  
            of care, that managed care case managers understand the full  
            nature of services available under Medi-Cal, and that the  
            managed care delivery system address provider grievances and  
            resolution of those grievances using the same medically  
            necessity criteria used FFS Medi-Cal.

         11.Oppose unless amended. The California Medical Associations  
            (CMA) states it believes that any redesign of CCS should be  
            informed by both the state's RSAB and by evaluation of data  
            from the two pilot projects currently underway to assess the  
            benefit and cost of directions for change for CCS.  CMA argues  
            it would be prudent to not move forward with this bill this  
            year to allow those processes to play out. CMA indicates it  
            would remove its opposition to the bill if it is amended to  
            extend the current managed care carve out of CCS for an  
            additional year while the stakeholder board completes its work  
            and the state reports back on data from the pilot projects.

            Kaiser Permanente (KP) writes this bill will unnecessarily  
            disrupt the coordinated and centralized primary and  
            specialty care its over 11,000 CCS-eligible kids already  
            receive through its four CCS-certified tertiary medical  
            facilities 64 CCS-certified special care centers. KP argues  
            that, under this bill, it appears that in order to be  
            allowed to continue to provide care to CCS children in KP,  
            it would be required to contract with a free-standing  
            children's hospital as part of a separate KIDS network. KP  
            seeks an amendment to allow CCS children to remain in KP.
          
         12.Concerns. The California Association of Health Plans (CAHP)  
            writes expressing concern with the requirement that health  
            care practitioners be CCS paneled providers as there is a  








          SB 586 (Hernandez)                                 Page 15 of ?
          
          
            backlog of approvals. CAHP argues the ability to panel  
            providers should be given to children's hospitals and DHCS.  
            CAHP also expresses concern with continuity of care as  
            children will be moving back and forth between KIDS and health  
            plan networks. CAHP argues there is a need for a careful  
            detailed analysis of CCS-eligible conditions to redefine  
            medical eligibility for the CCS program to reduce children  
            moving back and forth across networks. CAHP also argues there  
            needs to be a stronger requirement for facilitated  
            communications between DHCS, KIDS, counties and health plans  
            to be fully outlined and understood as the lack of  
            coordination between these systems is an issue today that is  
            not sufficiently addressed in the bill as currently drafted.  
            CAHP also states that it is unclear how children with chronic  
            conditions will be transitioned out of the program at age 21  
            or 26 as transitions to appropriate adult specialists should  
            be done in a collaborative manner in order to protect the  
            individuals and ensure age appropriate care is provided.

         13.Proposed author's amendment. The author is offering amendment  
            below to allow additional CCS providers with appropriate  
            expertise to form KIDS networks:

               (2) "Kids Integrated Delivery System (KIDS)" means an  
               entity selected by the department to coordinate and manage  
               the provision of Medi-Cal and CCS services for eligible  
               children, on a county or regional basis, consistent with  
               managed care principles, techniques, and practices, to  
               ensure access to cost-effective, quality care for enrolled  
               children. A KIDS plan may include either of the following  
               organizational models:
               (A) An entity coordinated through a children's hospital  
               with a shared governance structure comprised of providers  
               who are held jointly accountable for achieving measured  
               quality improvements and reductions in the rate of spending  
               growth for Medi-Cal services for enrolled children.
               (B) An entity coordinated by a CCS-approved provider with a  
               shared governance structure comprised of providers,  
               including participation by at least one children's  
                hospital,   hospital or a hospital that was designated, prior  
               to January 1, 2016, as a CCS tertiary hospital, and as of  
               that date, holds a designation as a CCS tertiary hospital  
               pursuant to the Standards for Tertiary Hospitals set forth  
               in the California Children's Services Manual of Procedures,  
                who are held jointly accountable for achieving measured  








          SB 586 (Hernandez)                                 Page 16 of ?
          
          
               quality improvements and reductions in the rate of spending  
               growth for Medi-Cal services for enrolled children.
               
          SUPPORT AND OPPOSITION  :
          Support:  California Children's Hospital Association (sponsor)
                    California WIC Association 
                    Children's Hospital of Los Angeles
                    Children's Hospital and Research Center Oakland
                    Children's Hospital of Orange County (CHOC) Children's
                    Children's Hospital of Orange County (CHOC) Physician  
                    Network
                    Children's Specialty Care Coalition
                    Lucille Packard Children's Hospital Stanford
                    Together We Grow
                    Rady Children's Hospital San Diego
                    Valley Children's Healthcare, Inc.
                    Valley Children's Primary Medical Group, Inc.
                    
          Oppose:   American Academy of Pediatrics
                    California Association for Health Services at Home 
                    California Medical Association (unless amended)
                    Kaiser Permanente (unless amended)
          


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