BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1113 (Beall) - Pupil health: mental health ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 14, 2016 |Policy Vote: ED. 8 - 1, HEALTH | | | 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill authorizes local educational agencies (LEAs) to enter into partnerships, as specified, with county mental health plans for the provision of Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) mental health services and to expand the allowable uses of specified mental health funds. It also requires the California Department of Education (CDE) and the Department of Health Care Services (DHCS) to enter into an agreement and update their reporting systems to track academic outcomes and other measures for individuals enrolled in Medi-Cal and special education who receive mental health services. Fiscal Summary: Unknown costs to implement the grant program as it would depend upon the amount of funding that is transferred into the County and Local Educational Agency Partnership Fund (Partnership Fund). The author's office intends for this bill to fund about 10 LEAs at $600,000 each year for three schools per LEA. Under this scenario, costs would be $18 million per year. Actual costs could be higher or lower SB 1113 (Beall) Page 1 of ? depending upon available funding. See staff comments. (Proposition 98) To the extent Partnership funds are used for mental health services not required by an individualized education program (IEP), there would be a cost pressure to increase state funds by a similar amount that is transferred, to backfill the special education program to meet the federal maintenance of effort requirement. (Proposition 98) CDE estimates the costs to prepare and report required data and to administer the competitive grant process, to be up to $150,000 General Fund across several positions. Unknown, potentially significant costs to the Department of Health Care Services and CDE to enter into a data sharing agreement. Associated cost pressures and potential significant mandate for LEAs to report the required data to CDE (Proposition 98). To the extent the use of moneys from the Partnership Fund leads to increased access to federal Medi-Cal funds, LEAs would presumably be able to provide additional services to eligible students in their jurisdiction. (Federal funds) Background: This bill is in response to a finding of an audit conducted by the Bureau of State Audits, Student Mental Health Services: Some Students' Services were affected by a New State Law, and the State Needs to Analyze Student Outcomes and Track Service Costs, (January 2016) that LEAs and counties could benefit financially and improve student access to mental health services by collaborating to provide services to Medi-Cal eligible students. According to a survey conducted of the SELPA Administrators of California members, six SELPAs report having an EPSDT partnership in place. In 2011, AB 114 shifted the responsibility of providing educationally-related mental health services from county mental health agencies to LEAs. LEAs are required to ensure services are provided to students regardless of who provides or pays. The EPSDT program is a Medi-Cal benefit for people under the age SB 1113 (Beall) Page 2 of ? of 21 who have "full scope" Medi-Cal eligibility. This benefit allows for periodic screenings to determine health care needs and, based upon the identified health care need and diagnosis, treatment services are provided. EPSDT provides eligible children access to a range of mental health services including, mental health assessments, mental health services, therapy, rehabilitation, therapeutic behavioral services, crisis intervention/stabilization, day rehabilitation/day treatment, medication support, and case management. LEAs are prohibited from directly providing or billing for EPSDT services unless the county mental health department chooses to contract with the LEA for those services. EPSDT is considered specialty mental health. According to CDE, LEAs can use one or more of the following options for sourcing mental health services to Medi-Cal eligible students: (1) provide and pay for services without seeking Medi-Cal reimbursement; (2) use the LEA Medi-Cal Billing Option Program (which does not cover as many services as EPSDT); or (3) for EPSDT services, collaborate with county mental health departments to secure the specialty mental health services through the county mental health plan. LEAs can do this by entering into a Memorandum of Understanding with the county mental health plan for specialty mental health services. In this case, county mental health plans provide the service and incur the cost, and bill Medi-Cal for federal reimbursement. The LEA can also request to be a certified provider of Medi-Cal specialty mental health services from the county mental health plan. This would allow the LEA to provide the specialty mental health services through an LEA qualified employee and submit a claim to the county mental health plan for federal reimbursement. Proposed Law: Requires the CDE to expand its reporting system to include academic performance and any measures with the DHCS' EPSDT mental health services performance outcome system, as specified. Requires the CDE and the DHCS to enter into an agreement to provide relevant academic data, to the DHCS for utilization in its performance outcome system regarding individuals enrolled in Medi-Cal and special education who receive mental health services. SB 1113 (Beall) Page 3 of ? Authorizes a county and LEA to enter into a partnership that, among other things, utilizes designated governmental funds for eligible EPSDT reimbursement for services provided to students enrolled in Medi-Cal, for mental health service costs for non-Medi-Cal enrolled students in special education with IEPs, and for students not part of special education; utilizes, with consent, information of the health insurance carrier for each student; allows participation of the county mental health plan and the LEA in a performance outcome system, as specified. This bill creates the Partnership Fund for which moneys are available upon appropriation by the Legislature to the CDE to fund these partnerships through a competitive grant program. This bill requires that to the extent there is an appropriation in the annual budget act for educationally related mental health services, the Superintendent of Public Instruction allocate these funds to the Partnership Fund. This bill also requires that funding for educationally related mental health services pursuant to an IEP provided in the budget be used only for that purpose unless the State Board of Education grants a waiver allowing these funds to be expended for other purposes. Related Legislation: SB 884 (Beall) requires, among other things, LEAs and SELPAs to collect and report specific information relative to mental health services, and requires CDE to monitor and compare specified information related to the level of special education services being provided. SB 884 is scheduled to be heard by this Committee on May 9, 2016. Staff Comments: The bill requires, to the extent educationally related mental health services funding is appropriated in the budget (which has been an ongoing appropriation for several years), those funds are to be transferred into the Partnership Fund. Though the current year budget provides $431 million for this purpose, it is unclear how much would be transferred into the new fund. The bill provides that agreements entered into between the county mental health plan and the LEA may include provisions for the delivery of mental health services to students not in special education. However, this bill requires that before providing services outside an IEP using these funds, SB 1113 (Beall) Page 4 of ? a waiver must first be granted by the State Board of Education. Staff notes that the federal Individuals with Disabilities Education Act prohibits states from providing state financial support for special education and related services below the amount of the preceding fiscal year. Therefore the state would not be able to count mental health services provided to students not required by an IEP towards the maintenance of effort (MOE) requirement. This would either require a Proposition 98 backfill to maintain the same level of state program support, or the state could be required to return the portion of federal funds to the United States Department of Education that it fell short from meeting the MOE requirement. LEAs are also held to a similar MOE requirement at the local level. This bill authorizes the partnerships to address how to cover the costs of mental health provider services not reimbursed by Medi-Cal EPSDT and how to pay the required match. Though these obstacles are similar to those experienced today, in order to receive a grant pursuant to this bill, counties and LEAs would have to come to an agreement, locally, on the provision of services and the corresponding financial responsibility. -- END --