BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 586


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          SENATE THIRD READING


          SB  
          586 (Hernandez)


          As Amended  August 2, 2016


          Majority vote


          SENATE VOTE:  40-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |18-0 |Wood, Maienschein,    |                    |
          |                |     |Bonilla, Burke,       |                    |
          |                |     |Campos, Chiu, Gomez,  |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Lackey, Nazarian,     |                    |
          |                |     |Olsen, Patterson,     |                    |
          |                |     |Ridley-Thomas,        |                    |
          |                |     |Rodriguez, Santiago,  |                    |
          |                |     |Steinorth, McCarty,   |                    |
          |                |     |Waldron               |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |








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          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |McCarty               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Extends the sunset date on the California Children's  
          Services (CCS) "carve out" to 2021, and establishes the Whole  
          Child Model (WCM) program for CCS eligible children under the  
          age of 21 in counties with county organized health systems for  
          delivery of Medi-Cal managed care (COHS counties).   
          Specifically, this bill:
          1)Prohibits CCS covered services from being incorporated into  
            any Medi-Cal managed care (MCMC) contract (known as the CCS  
            "carve out") entered into after August 1, 1994, until January  
            1, 2021, with the exception of contracts entered into by  
            county organized health systems (COHS) or regional health  
            authority (RHA) in the Counties of San Mateo, Santa Barbara,  
            Solano, Yolo, Marin, and Napa.


          2)Permits Department of Health Care Services (DHCS), no sooner  
            than July 1, 2017, to establish a WCM program for Medi-Cal and  
            State Children's Health Insurance Program (S-CHIP) eligible  
            CCS children and youth enrolled in a managed care plan under a  
            COHS or RHA in the Counties of Del Norte, Humboldt, Lake,  
            Lassen, Marin, Mendocino, Merced, Modoc, Monterey, Napa,  
            Orange, San Luis Obispo, San Mateo, Santa Barbara, Santa Cruz,  
            Shasta, Siskiyou, Solano, Sonoma, Trinity, and Yolo.


          3)Establishes the goals for the WCM program for children and  
            youth under 21 years of age who meet CCS eligibility  
            requirements and are enrolled in a managed care plan under a  
            COHS or RHA, including all of the following:








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             a)   Improving the coordination of primary and preventive  
               services with specialty care services, medical therapy  
               units (MTU), Early and Periodic Screening, Diagnosis, and  
               Treatment (EPSDT), long-term services and supports (LTSS),  
               and regional center services, and home- and community-based  
               services using a child and youth and family-centered  
               approach;


             b)   Maintaining or exceeding CCS program standards and  
               specialty care access, including access to appropriate  
               subspecialties;


             c)   Ensuring the continuity of child and youth access to  
               expert, CCS dedicated case management and care  
               coordination, provider referrals, and service  
               authorizations through contracting with or the employment  
               of county CCS staff to perform these functions.


             d)   Improving the transition of youth from CCS to adult  
               Medi-Cal managed care systems through better coordination  
               of medical and nonmedical services and supports and  
               improved access to appropriate adult providers for youth  
               who age out of CCS; and,


             e)   Identifying, tracking, and evaluating the transition of  
               children and youth from CCS to the WCM program to inform  
               future CCS program improvements.


          4)Requires neonatology to be included in the CCS program and  
            specifies that the specialty of neonatology is not excluded or  
            restricted from reimbursement under the CCS program, subject  
            to the program's existing or applicable prior authorization  








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            requirements or utilization review. 


          DHCS and MCMC Requirements Prior to Implementation of WCM


          5)Requires the director to provide notice to the Legislature,  
            the federal Centers for Medicare and Medicaid Services (CMS),  
            counties, CCS providers, and CCS families when each managed  
            care plan, including a transition plan with the county CCS  
            program, has been reviewed and certified as ready to enroll  
            children based on specified criteria.


          6)Requires DHCS, prior to the implementation of the WCM, to  
            develop specific CCS program monitoring and oversight  
            standards for managed care plans, including access monitoring,  
            quality measures, and ongoing public data reporting, and  
            establish a stakeholder process.


          7)Requires DHCS, in order to aid the transition of CCS services  
            into MCMC plans participating in the WCM program, commencing  
            January 1, 2017, and continuing through the completion of the  
            transition of CCS enrollees into the WCM program, to begin  
            requesting and collecting from MCMC plans information about  
            each health plan's provider network, and requires DHCS to  
            analyze the existing MCMC delivery system network and the CCS  
            fee-for-service (FFS) provider networks to determine the  
            overlap of the provider networks in each county, and to  
            furnish this information to the MCMC.


          8)Prohibits a MCMC plan from being approved to participate in  
            the WCM program unless certain conditions have been satisfied,  
            as specified.


          9)Requires a MCMC plan, prior to implementation of the WCM  








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            program, to review historical CCS FFS utilization data for  
            CCS-eligible children and youth upon transition of CCS  
            services to managed care plans so that the managed care plans  
            are better able to assist CCS-eligible children and youth and  
            prioritize assessment and care planning.


          10)Requires DHCS to develop a memorandum of understanding (MOU)  
            template, to be utilized by participating counties and health  
            plans, and which includes, but is not limited to, the  
            standards relating to the local administration of, and minimum  
            services to be provided by, counties and MCMC plans in the  
            administration of the WCM program.  Requires DHCS to consult  
            with counties and MCMC plans in the development of the WCM MOU  
            template.


          11)Requires DHCS to provide written notice to the appropriate  
            county agency of the calculation for determining the  
            administrative allocation to the county CCS program by means  
            of county information notice and requires DHCS to consult with  
            the WCM program counties in determining the calculation for  
            determining the administrative allocation.


          12)Requires each MCMC participating in the WCM program to  
            establish an assessment process of CCS beneficiary risk level  
            and care needs, as specified. 


          Plan of Care and Care Coordination Requirements


          13)Requires MCMC plans participating in the WCM program to meet  
            all of the following requirements:


             a)   Ensure that each CCS-eligible child or youth receives  
               case management, care coordination, provider referral, and  








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               service authorization services from an employee of the plan  
               who has knowledge of and clinical experience with the CCS  
               program.


             b)   Work with the state or county CCS program, as  
               appropriate, to ensure that, at a minimum, and in addition  
               to other statutory and contractual requirements, care  
               coordination and care management activities do all of the  
               following:


               i)     Reflect an outcome-based approach to care planning;


               ii)    Ensure families have access to ongoing information,  
                 education, and support so that they understand the care  
                 plan for their child or youth and their role in the  
                 individual care process, the benefits of mental health  
                 services, what self-determination means, and what  
                 services might be available;


               iii)   Adhere to the CCS beneficiary's or their family's  
                 determination about the appropriate involvement of  
                 medical providers and caregivers;


               iv)    Are developed across CCS specialty services,  
                 Medi-Cal primary care services, mental health and  
                 behavioral health benefits, regional center services,  
                 medical therapy units (MTUs), and in-home supportive  
                 services (IHSS), including transitions among levels of  
                 care and between service locations;


               v)     Include individual care plans for beneficiaries  
                 based on the results of the risk assessment process with  
                 a particular focus on CCS specialty care;








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               vi)    Consider behavioral health needs of beneficiaries  
                 and coordinate those services with the county mental  
                 health department as part of the CCS beneficiary's  
                 individual care plan, when appropriate, and facilitate  
                 access to appropriate community resources and other  
                 agencies, including referrals, as necessary and  
                 appropriate, for behavioral services, such as mental  
                 health services; and,


               vii)   Ensure access to transportation and other support  
                 services necessary to receive treatment.


             c)   Incorporate all of the following into the CCS  
               beneficiary's plan of care patterns and processes:


               i)     Access for families so that they know where to go  
                 for ongoing information, education, and support to  
                 understand the goals, treatment plan, and course of care  
                 for their child or youth and their role in the process,  
                 what it means to have primary or specialty care for their  
                 child or youth, when it is time to call a specialist,  
                 primary care provider, urgent care, or emergency room,  
                 what an interdisciplinary team is, and what the community  
                 resources are;


               ii)    A primary or specialty care physician who is the  
                 primary clinician and who provides core clinical  
                 management functions;


               iii)   Care management and care coordination across the  
                 health care system, including transitions among levels of  
                 care and interdisciplinary care teams;








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               iv)    Provision of referrals to qualified professionals,  
                 community resources, or other agencies for services or  
                 items outside the scope of responsibility of the managed  
                 care health plan;


               v)     Use of clinical data to identify beneficiaries with  
                 chronic illness or other significant health issues; and,


               vi)    Timely preventive, acute, and chronic illness  
                 treatment of CCS-eligible children or youth in the  
                 appropriate setting.


          14)Establishes on-going requirements for MCMC plans that ensure  
            appropriate coordination with regional care centers and MTUs,  
            access to necessary information for families, timely access to  
            care, communication in culturally appropriate formats, access  
            to information about grievance and appeals procedures,  
            compliance with Medi-Cal due process requirements coordination  
            as appropriate and other information as specified.


          CCS Provider Continuity of Care 


          15)Requires each MCMC plan to establish and maintain a process  
            by which a CCS-eligible child or youth may maintain access to  
            CCS providers that the child or youth has an existing  
            relationship with for treatment of the child's or youth's CCS  
            condition for three years, under the following conditions:


             a)   The CCS-eligible child or youth has seen the  
               out-of-network CCS provider for a nonemergency visit at  
               least once during the 12 months immediately preceding the  








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               date the MCMC plan assumed responsibility for the child's  
               or youth's CCS care under the WCM program;


             b)   The provider must accept the health plan's rate for the  
               service offered or the applicable Medi-Cal or CCS FFS rate,  
               whichever is higher, unless the CCS provider enters into an  
               agreement on an alternative payment methodology mutually  
               agreed to by the CCS provider and the MCMC plan;


             c)   The managed care plan confirms that the provider meets  
               applicable CCS standards and has no disqualifying quality  
               of care issues; and,


             d)   The CCS provider provides treatment information to the  
               MCMC plan, to the extent authorized by the state and  
               federal patient privacy provisions.


          DME Continuity of Care


          16)Requires each MCMC to establish and maintain a process by  
            which a CCS-eligible beneficiary can maintain access to  
            specialized or customized durable medical equipment (DME)  
            providers for up to 12 months under the following conditions:


             a)   The CCS-eligible beneficiary has an ongoing relationship  
               with a DME provider who has previously provided specialized  
               or customized equipment, such as power wheelchairs,  
               repairs, and replacement parts; prosthetic limbs;  
               customized orthotic devices; and individualized assistive  
               technology.  This does not include generally available or  
               noncustomized DME;










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             b)   Requires the DME provider to accept the health plan's  
               rate for the service offered or the applicable Medi-Cal or  
               CCS FFS rate, whichever is higher, unless the DME provider  
               enters into an agreement on an alternative payment  
               methodology mutually agreed upon by the DME provider and  
               the MCMC plan; and,


             c)   The DME provider provides information to the MCMC plan  
               as requested by the plan, to the extent authorized by state  
               and federal patient privacy provisions. 


          17)Defines "specialized or customized durable medical equipment"  
            as DME that meets all of the following criteria:


             a)   Is uniquely constructed from raw materials or  
               substantially modified from the base material solely for  
               the full-time use of the specific beneficiary according to  
               a physician's description and orders;


             b)   Is made to order or adapted to meet the specific needs  
               of the beneficiary; and,


             c)   Is uniquely constructed, adapted, or modified to  
               permanently preclude the use of the equipment by another  
               individual, and is so different from another item used for  
               the same purpose that the two items cannot be grouped  
               together for pricing purposes.


          18)Permits DHCS to extend the continuity of care duration for  
            highly specialized or customized DME that is under warranty.


          Prescription Drug Continuity of Care








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          19)Requires each MCMC plan to permit a CCS-eligible child or  
            youth enrolled as part of the WCM program to continue use of  
            any prescription drug that is part of a prescribed therapy for  
            the enrollee's CCS-eligible condition or conditions  
            immediately prior to the date of enrollment, whether or not  
            the prescription drug is covered by the plan, until the  
            prescription drug is no longer prescribed by the enrollee's  
            plan-contracting CCS provider.


          Case Manager Continuity of Care 


          20)Requires each MCMC plan participating in the WCM program to  
            ensure that children and youth are provided expert case  
            management, care coordination, service authorization, and  
            provider referral.  Requires each MCMC plan to meet this  
            requirement by, at the request of the child, youth, or his or  
            her parent or guardian, allowing the child or youth to  
            continue to receive case management, care coordination,  
            provider referrals and service authorizations from his or her  
            public health nurse.  Requires this election to be made within  
            90 days of the transition of CCS services into the MCMC plan.  
            Requires a MCMC to meet this requirement by either or both of  
            the following:


             a)   By entering into a MOU with the county for case  
               management, care coordination, provider referral, and  
               service authorization services to the child; or,


             b)   By collocating county public health nurses who provide  
               case management and coordination within the MCMC plan.


          21)Permits the MCMC plan, in the event the county public health  








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            nurse leaves the CCS program, to transition the care  
            coordination and case management of a child or youth to an  
            employee of the plan who has education, knowledge, and  
            experience with the CCS program and pediatric patients or who  
            has knowledge and experience treating CCS-eligible conditions  
            in pediatric patients.


          MCMC Plan Care Guidelines Regarding Credentialed Providers


          22)Requires a MCMC plan to meet all of the following  
            requirements:


             a)   Use all current and applicable CCS program guidelines,  
               including CCS program regulations, CCS numbered letters,  
               and CCS program information notices in developing criteria  
               for use by the plan's chief medical officer or the  
               equivalent and other care management staff;


             b)   In cases in which CCS program guidelines do not exist,  
               use evidence-based guidelines or treatment protocols that  
               are medically appropriate given the child's CCS-eligible  
               condition;


             c)   Utilize only CCS providers to treat CCS conditions; and,


             d)   Utilize a provider dispute resolution process that  
               includes the following requirements:


               i)     Includes health plan contracts with providers that  
                 contain provisions requiring a fast, fair, and  
                 cost-effective dispute resolution mechanism under which  
                 providers may submit disputes to the plan, and require  








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                 the plan to inform its providers upon contracting with  
                 the plan, or upon change to these provisions, of the  
                 procedures for processing and resolving disputes,  
                 including the location and telephone number where  
                 information regarding disputes may be submitted;


               ii)    Is accessible to non-contracting providers for the  
                 purpose of resolving billing and claims disputes; and,


               iii)   A health care service plan to annually submit a  
                 report to DHCS regarding its dispute resolution mechanism  
                 that includes information on the number of providers who  
                 utilized the dispute resolution mechanism and a summary  
                 of the disposition of those disputes.


          Rates Paid to MCMC Plans and Rates Paid to Providers


          23)Requires DHCS to pay any managed care plan participating in  
            the WCM program a separate, actuarially sound rate  
            specifically for CCS children and youth, as long as an  
            actuarially sound rate can be developed for the managed care  
            plan's CCS population.  Permits DHCS, when contracting with  
            managed care plans, to allow the use of risk corridors or  
            other methods to appropriately mitigate a plan's risk for this  
            population.


          24)Requires MCMC plans to pay physician and surgeon provider  
            services at rates that are equal to or exceed the applicable  
            CCS FFS rates, unless the physician and surgeon enters into an  
            agreement on an alternative payment methodology mutually  
            agreed to by the physician and surgeon and the MCMC plan.


          State and MCMC Plan Advisory Committees








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          25)Requires a MCMC plan participating in the WCM program to  
            create and maintain a clinical advisory committee composed of  
            the managed care contractor's chief medical officer or the  
            equivalent, the county CCS medical director, and at least four  
            CCS-paneled providers to advise on clinical issues relating to  
            CCS conditions, including treatment authorization guidelines,  
                     and serve as clinical advisers on other clinical issues  
            relating to CCS conditions.


          26)Requires each MCMC plan participating in the WCM program to  
            establish a family advisory group for CCS families and  
            requires family representatives who serve on this advisory  
            group to receive a reasonable per diem payment to enable  
            in-person participation in the advisory group. 


          27)Requires DHCS to establish a statewide WCM program  
            stakeholder advisory group (SAG), or modify an existing Whole  
            Child Model program stakeholder advisory group, comprised of  
            representatives of CCS providers, county CCS program  
            administrators, health plans, family resource centers,  
            regional centers, labor organizations, CCS case managers, CCS  
            MTUs, and representatives from family advisory groups.


          28)Sunsets the statewide WCM program SAG on December 31, 2021.


          Evaluation


          29)Requires DHCS to contract with an independent entity that has  
            experience in performing robust program evaluations to conduct  
            an evaluation to assess MCMC plan performance and the outcomes  
            and the experience of CCS-eligible children and youth  
            participating in the WCM program, including access to primary  








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            and specialty care, and youth transitions from WCM program to  
            adult Medi-Cal coverage.


          30)Requires DHCS to provide a report on the results of this  
            evaluation to the Legislature by no later than January 1,  
            2021. 


          31)Requires the evaluation to evaluate the performance of the  
            plans participating in the WCM program as compared to the  
            performance of the CCS program prior to the implementation of  
            the WCM in those same counties and whether the inclusion of  
            CCS services in a managed care delivery system improves access  
            to care, quality of care, and the patient experience, as  
            specified. 


          32)Requires the evaluation to also evaluate the performance of  
            managed care plans participating in the WCM program as  
            compared to the performance of the CCS program in counties  
            where CCS services are not incorporated into managed care, and  
            collect appropriate data to evaluate whether inclusion of CCS  
            services in a managed care delivery system improves access to  
            care, quality of care, and the patient experience, by  
            analyzing all of the following:


             a)   The rate of new CCS enrollment in each county;


             b)   The percentage of CCS-eligible children and youth with a  
               diagnosis requiring a referral to a CCS special care center  
               who have been at a CCS special care center; and,


             c)   The percentage of CCS children and youth discharged from  
               a hospital who had at least one followup contact or visit  
               within 20 days after discharge.








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          Regulations and Use of Contract Authority 


          33)Requires DHCS, without taking regulatory action, to  
            implement, or interpret any applicable federal waivers and  
            state plan amendments by means of all-county letters, plan  
            letters, CCS numbered letters, plan or provider bulletins, or  
            similar instructions until the time regulations are adopted. 


          34)Requires DHCS, by July 1, 2019, to adopt regulations.   
            Requires DHCS, commencing July 1, 2017, to provide a status  
            report to the Legislature on a semiannual basis, until  
            regulations have been adopted and permits the Director to  
            enter into exclusive or nonexclusive contracts on a bid,  
            nonbid, or negotiated basis and to amend existing managed care  
            plan contracts to provide or arrange for services, as  
            specified.


          EXISTING LAW:  


          1)Prohibits CCS covered services from being incorporated into  
            any MCMC contract entered into after August 1, 1994 until  
            January 1, 2017, with the exception of contracts entered into  
            by a COHS or RHA in the Counties of San Mateo, Santa Barbara,  
            Solano, Yolo, Marin, and Napa.


          2)Specifies that CCS covered services means any or all of the  
            following, regardless of the funding sources:


             a)   Expert diagnosis;










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             b)   Medical treatment;


             c)   Surgical treatment;


             d)   Hospital care;


             e)   Physical therapy;


             f)   Occupational therapy;


             g)   Special treatment;


             h)   Materials;


             i)   Appliances and their upkeep, maintenance, care and  
               transportation; and,


             j)   Maintenance, transportation, or care incidental to any  
               other form of "services."


          3)Requires managed care contractors serving CCS-eligible  
            children to maintain and follow standards of care established  
            by the program, including the use of paneled providers and  
            CCS-approved special care centers and to follow treatment  
            plans approved by the program, including specified services  
            and providers of services. .


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:








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          1)This bill largely aligns with existing administrative plans to  
            implement a WCM program.  However, there are several required  
            activities that will result in costs (General Fund/federal):
             a)   Monitoring and oversight standards:  $500,000 per year. 
             b)   Stakeholder advisory group:  $50,000 per year. 


             c)   Independent evaluation:  $300,000-$500,000 one-time. 


          2)The requirements for managed care plans to pay providers at  
            existing rates results in unknown fiscal impact.  To the  
            extent access to care could be maintained with lower payment  
            rates, this may lead to potential unrealized savings.   
          3)Extending the carve-out result in non-COHS counties results in  
            an unknown, potentially significant fiscal impact to the  
            extent it reduces flexibility to provide care in a more  
            cost-efficient manner.  However, there are no plans to "carve  
            in" CCS services for non-COHS counties. 


          COMMENTS:  According to the author, this bill authorizes the  
          creation of a WCM in counties served by a Medi-Cal COHS.  CCS  
          has been carved out of MCMC since 1994 because the Legislature  
          recognized this population required a unique approach.  In over  
          two decades since that time, the CCS carve-out has been extended  
          numerous times, and the state has engaged in periodic efforts to  
          pilot CCS alternative arrangements.  The current carve out ends  
          December 31, 2016, and the Administration has signaled that they  
          will support an extension of the carve-out only if it is  
          accompanied by a plan for an organized delivery system that  
          combines CCS-services in a WCM.  This bill responds to that call  
          by establishing a WCM in COHS MCMC plans.  This bill extends the  
          carve-out in non-COHS counties, ensures there is an incentive to  
          continue to identify CCS-eligible children and adequately funds  
          their care by requiring a stand-alone capitation payment paid to  
          MCMC plans, ensures access to physician specialists by requiring  








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          a payment floor for CCS physician services, provides extended  
          continuity of care so that children can continue to see their  
          current providers, ensures continuity and consistency of CCS  
          program expertise in care coordination and service  
          authorization, requires an evaluation of the WCM, and ensures  
          family involvement in the WCM at both the state and local level.


          Originally established in 1927, the CCS program provides  
          diagnostic and treatment services, medical case management, and  
          physical and occupational therapy services to children under age  
          21 with CCS-eligible medical conditions.  Some examples of  
          CCS-eligible conditions include chronic medical conditions such  
          as cystic fibrosis, hemophilia, cerebral palsy, heart disease,  
          cancer, traumatic injuries, and certain infectious diseases.   
          CCS also provides medical therapy services that are delivered at  
          public schools.  As of January 2012, there were 190,507 children  
          enrolled in CCS.  According to DHCS, 90% of CCS enrollees are  
          also eligible for Medi-Cal and 10% were CCS-only or were covered  
          by other insurance.  The Medi-Cal program reimburses providers  
          for Medi-Cal eligible beneficiaries. 


          In 1994, legislation was enacted to provide that CCS-covered  
          services for CCS-eligible children would not be incorporated  
          into managed care, termed a "carve out" and would be provided  
          and paid for on a FFS basis through the CCS program.  The  
          carve-out was approved for three years and authorized pilot  
          projects to test alternative managed care models tailored to the  
          special health care needs of CCS program, including using  
          different payment and incentive models.  No pilot projects were  
          ever approved.  The 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 allowed Yolo and Marin counties to include CCS  
          services










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          1)MCMC.  MCMC contracts for health care services through  
            established networks of organized systems of care, which  
            emphasize primary and preventive care.  Managed care plans are  
            intended to be a cost-effective use of health care resources  
            that improve health care access and assure quality of care.   
            According to DHCS, approximately 10.3 million Medi-Cal  
            beneficiaries in all 58 California counties receive their  
            health care through six main models of managed care:   
            Two-Plan, COHS, Geographic Managed Care, Regional Model,  
            Imperial, and San Benito.  Medi-Cal providers who wish to  
            provide services to managed care enrollees must participate in  
            the managed care plan's provider network.  
          2)COHS.  This bill permits DHCS, beginning July 1, 2017, to  
            establish a WCM program for Medi-Cal eligible CCS children  
            enrolled in a managed care plan under a COHS, one of the six  
            models of managed care, as discussed above.  Each COHS is  
            created by a county board of supervisors and governed by an  
            independent commission.  In COHS counties, a single plan  
            serves all Medi-Cal beneficiaries who are enrolled in managed  
            care.  There are currently six COHS, operating in 22 counties,  
            as follows:


























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                ---------------------------------------------------------- 
               |        COHS         |      Counties       |  Number of   |
               |                     |                     |  enrollees   |
               |                     |                     |  as of May   |
               |                     |                     |     2015     |
               |---------------------+---------------------+--------------|
               |      CalOptima      |       Orange        |   746,767    |
               |---------------------+---------------------+--------------|
               |    CenCal Health    |    Santa Barbara    |   163,264    |
               |                     |   San Luis Obispo   |              |
               |---------------------+---------------------+--------------|
               | Central California  |     Santa Cruz,     |   331,148    |
               | Alliance for Health |  Monterey, Merced   |              |
               |---------------------+---------------------+--------------|
               |  Gold Coast Health  |       Ventura       |   190,750    |
               |        Plan         |                     |              |
               |---------------------+---------------------+--------------|
               | Health Plan of San  |      San Mateo      |   106,080    |
               |        Mateo        |                     |              |
               |---------------------+---------------------+--------------|
               | Partnership Health  |Del Norte, Humboldt, |   542,890    |
               | Plan of California  |Lake, Lassen, Marin, |              |
               |                     |  Mendocino, Modoc,  |              |
               |                     |    Napa, Shasta,    |              |
               |                     |  Siskiyou, Solano,  |              |








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               |                     |Sonoma, Trinity, and |              |
               |                     |    Yolo Counties    |              |
                ---------------------------------------------------------- 
                ----------------------------------------------------------- 
               |                      Total COHS Enrollment |2,080,899     |
               |                                            |              |
               |                                            |              |
               |                                            |              |
               |                                            |              |
                ----------------------------------------------------------- 


            MCMC plans are generally subject to:  a) consumer protections  
            provided by the California Knox-Keene Health Care Service Plan  
            Act of 1975 (Knox-Keene) and overseen by the Department of  
            Managed Health Care (DMHC); b) federal and state rules and  
            regulations for Medi-Cal; and, c) terms set forth and agreed  
            upon in contracts between the plans and DHCS.


            However, unlike other MCMC plans, COHS plans are not required  
            to obtain Knox Keene licensure for their Medi-Cal lines of  
            business, and unless they choose to obtain a Knox-Keene  
            license, they are not directly regulated by the DMHC.  Rather  
            than operating under specific statutory mandates, the county  
            is bound by the rules, terms, and conditions negotiated by the  
            contract.  Despite the exemption, one COHS, the Health Plan of  
            San Mateo, voluntarily obtained a Knox-Keene license.   
            Additionally, all other COHS, except for Gold Coast Health  
            Plan, have obtained a Knox-Keene license for other,  
            non-Medi-Cal lines of business.  


          3)DHCS Proposal.  In September of 2014, DHCS implemented a  
            stakeholder process to investigate potential improvements or  
            changes to the CCS program, in partnership with the University  
            of California, Los Angeles Center for Health Policy Research.   
            The CCS Redesign Stakeholder Advisory Board (RSAB) is composed  
            of individuals from various organizations and backgrounds with  








                                                                     SB 586


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            expertise in both the CCS program and care for children and  
            youth with special health care needs, and meets on a  
            bi-monthly bases.  In August of 2015, DHCS released proposed  
            bill language, based in part on feedback received by the RSAB.  
             This language was the starting point for extensive  
            negotiations between DHCS, stakeholders, and legislative staff  
            on the future of the CCS program. Some of the key issues on  
            which there is still disagreement include whether or not  
            sign-off from affected entities prior to implementation of WCM  
            should be required, the relationship between the plans and the  
            counties regarding case management, care coordination,  
            provider referral and service authorization, the role and  
            responsibilities of county CCS workers regarding care  
            coordination and management services they currently provide,  
            the duration of continuity of care provisions, standards for  
            care, whether there should be a stand-alone rate paid to plans  
            for children enrolled in CCS, and tracking outcomes and health  
            for CCS children for 10 years.
          The California Children's Hospital Association (CCHA), the  
          California Chronic Care Coalition, Children Now, Hemophilia  
          Council of California and other supporters state that the WCM  
          has the potential to improve the coordination of services for  
          children along the whole continuum of medical care, but as with  
          any major health care transition, it also has the potential to  
          cause disruptions to care delivery.  CCHA is particularly  
          concerned that the transition could jeopardize long-standing  
          relationships between CCS-eligible children and the providers  
          who currently treat them, and upset the State's high quality  
          pediatric specialty network.  In addition, integrating the CCS  
          program with managed care does not necessarily guarantee that  
          coordination will occur.  CCHA states that this bill sets forth  
          a comprehensive framework for implementing the WCM that will  
          help ensure a smoother transition and preserve the positive  
          aspects of the CCS program while creating an integrated delivery  
          system tailored to the needs of children with complex medical  
          conditions and their families.  In particular, CCHA believes  
          several components of this bill are particularly critical to  
          ensuring CCS-eligible children and youth continue to receive the  
          highest quality of care through the WCM. 








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          Disability Rights California (DRC) states that the CCS program  
          is critically important to their clients and constituents.  It  
          is the means by which disabled individuals receive the health  
          care services that enable them to live and to progress to  
          realize their potential including progressing towards greater  
          independence and quality of life.  Access to CCS program paneled  
          physicians and the hospitals in which they work as well as  
          registered nurse case management is critical.  Because a number  
          of DRC clients and constituents have low incidence disabilities,  
          access to CCS program paneled providers who are out of county is  
          important in order to ensure access to CCS program providers  
          with experience and expertise to address their particular  
          medical condition.  Of particular importance for DRC clients and  
          constituents with the most severe and complex disabilities have  
          access to special care centers.  DRC also stresses the  
          importance of due process procedures and access to the Medicaid  
          EPSDT medical necessity standard. 




          Analysis Prepared by:                                             
                          Paula Villescaz / HEALTH / (916) 319-2097  FN:  
          0004071