BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1291|
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                                   THIRD READING 


          Bill No:  SB 1291
          Author:   Beall (D) 
          Amended:  6/1/16  
          Vote:     21 

           SENATE HEALTH COMMITTEE:  9-0, 4/6/16
           AYES:  Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,  
            Pan, Roth, Wolk

           SENATE HUMAN SERVICES COMMITTEE:  5-0, 4/12/16
           AYES:  McGuire, Berryhill, Hancock, Liu, Nguyen

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
           
           SUBJECT:   Medi-Cal:  specialty mental health:  children and  
                     youth


          SOURCE:    National Center for Youth Law

          DIGEST:  This bill requires each county mental health plan to  
          submit an annual foster care mental health service plan to the  
          Department of Health Care Services (DHCS) detailing the services  
          available to Medi-Cal eligible children and youth under the  
          jurisdiction of the juvenile court and their families. Requires  
          a mental health plan review to be conducted annually by an  
          external quality review organization (EQRO) that includes  
          specific data for Medi-Cal eligible children and youth under the  
          jurisdiction of the juvenile court and their families.

          ANALYSIS:  
          








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          Existing law:

          1)Establishes the Medi-Cal program, which is administered by the  
            DHCS, under which qualified low-income individuals receive  
            health care services. 

          2)Requires DHCS to implement managed mental health care for  
            Medi-Cal beneficiaries through contracts with mental health  
            plans. Mental health plans may include individual counties,  
            counties acting jointly, or an organization or nongovernmental  
            entity determined by DHCS to meet mental health plan  
            standards. A contract may be exclusive and may be awarded on a  
            geographic basis.

          3)Requires mental health plans to provide specialty mental  
            health services to eligible Medi-Cal beneficiaries, including  
            both adults and children.

          4)Requires DHCS to be responsible for conducting investigations  
            and audits of claims and reimbursements for expenditures for  
            specialty mental health services provided by mental health  
            plans to Medi-Cal eligible individuals.

          5)Requires DHCS to provide oversight to the mental health plans  
            to ensure quality, access, cost efficiency, and compliance  
            with data and reporting requirements. Requires DHCS, at a  
            minimum, through a method independent of any agency of the  
            mental health plan contractor, to monitor the level and  
            quality of services provided, expenditures pursuant to the  
            contract, and conformity with federal and state law.

          This bill:

          1)Requires each mental health plan to submit an annual foster  
            care mental health service plan to DHCS detailing the service  
            array, from prevention to crisis services, available to  
            Medi-Cal eligible children and youth under the jurisdiction of  
            the juvenile court and their families. Requires the plans to  
            be consistent with the Special Terms and Conditions of the  
            federal Medicaid waiver for specialty mental health waiver and  
            specified provisions of federal regulation. Requires plans to  
            be submitted by July 1 of each year, beginning in 2017. 

          2)Requires each mental health plan to submit an annual foster  







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            care mental health service plan to DHCS detailing the service  
            array, from prevention to crisis services, available to  
            Medi-Cal eligible children and youth under the jurisdiction of  
            the juvenile court and their families. Requires plans to be  
            submitted by July 1st of each year, beginning in 2017. 

          3)Requires the board of supervisors of each mental health plan  
            to approve the plan prior to submission of the plan. 

          4)Requires a mental health plan review to be conducted annually  
            by an external quality review organization (EQRO). Requires  
            the review to include specific data for Medi-Cal eligible  
            children and youth under the jurisdiction of the juvenile  
            court and their families.

          5)Requires the mental health plan and the mental health plan  
            review done by the EQRO to include, but not be limited to, all  
            of the following elements:

             a)   The number of Medi-Cal eligible children and youth under  
               the jurisdiction of the juvenile court served each year;
             b)   The number of family members, including foster parents,  
               of children and youth under the jurisdiction of the  
               juvenile court served by the county mental health plans;
             c)   Details on the types of services provided to children  
               and youth under the jurisdiction of the juvenile court and  
               their families, including prevention and treatment  
               services;
             d)   Access to and timeliness of mental health services  
               available to Medi-Cal eligible children and youth under the  
               jurisdiction of the juvenile court, using specified  
               standards for appointments and geographic accessibility  
               applicable to health plans regulated under the Knox-Keene  
               Act;
             e)   Quality of mental health services available to Medi-Cal  
               eligible children and youth under the jurisdiction of the  
               juvenile court;
             f)   Translation and interpretation services available to  
               Medi-Cal eligible children and youth under the jurisdiction  
               of the juvenile court;
             g)   Coordination with other systems, including regional  
               centers, special education local plan areas, child welfare,  
               and probation (this requirement is limited to mental health  
               service plan);







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             h)   Family and caregiver education and support (this  
               requirement is limited to mental health service plan);
             i)   Performance data for Medi-Cal eligible children and  
               youth under the jurisdiction of the juvenile court in the  
               annual EQRO report required by this bill;
             j)   Utilization data for Medi-Cal eligible children and  
               youth under the jurisdiction of the juvenile court in the  
               annual EQRO report required by this bill; and,
             aa)  Medication monitoring, consistent with specified  
               Healthcare Effectiveness Data and Information Set measures.

          6)Requires DHCS to post each plan on its Internet Web site.

          7)Requires DHCS to review the EQRO data for Medi-Cal eligible  
            children and youth under the jurisdiction of the juvenile  
            court and their families. Requires DHCS to notify the mental  
            health plans in writing of identified deficiencies if the EQRO  
            identifies deficiencies in a mental health plan's ability to  
            serve Medi-Cal eligible children and youth under the  
            jurisdiction of the juvenile court.

          8)Requires the mental health plan to provide a written  
            corrective action plan to DHCS within 60 days of receiving the  
            notice. Requires DHCS to notify the mental health plan of  
            approval of the corrective action plan or request changes, if  
            necessary, within 30 days after receipt of the corrective  
            action plan. Requires final corrective action plans to be made  
            publicly available by, at minimum, posting on the DHCS  
            Internet Web site.

          Comments
          
          1)Author's statement. According to the author, as the  
            Legislature passed legislation last year to stop the  
            over-prescription of psychotropic drugs to control foster  
            youth with behavioral problems, there were lingering questions  
            about the responsiveness and efficient delivery of mental  
            health services. To get answers and increase accountability,  
            this bill proposes to consolidate data from existing sources  
            into one plan under the oversight of the appropriate  
            regulatory agency. Specifically, it requires county mental  
            health plans to report out this data for children in the  
            dependency and juvenile systems in a standardized format. It  
            empowers the DHCS to take corrective action. To increase  







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            transparency, the data will be posted on the web.

          2)EQRO. Federal Medicaid regulations require states to contract  
            with an EQRO to perform external quality review activities.  
            The EQRO must have staff with demonstrated experience and  
            knowledge of (a) Medicaid beneficiaries, policies, data  
            systems, and processes; (b) managed care delivery systems,  
            organizations, and financing; (c) quality assessment and  
            improvement methods; and (d) research design and methodology,  
            including statistical analysis. The EQRO and its  
            subcontractors are independent from the state Medicaid agency  
            and the health plans that they review. States must ensure that  
            the EQR produces at least the following information: 

             a)   A detailed technical report that describes the manner in  
               which the data from all activities conducted were  
               aggregated and analyzed and conclusions were drawn as to  
               the quality, timeliness, and access to the care furnished  
               by the plan; 
             b)   An assessment of each plan's strengths and weaknesses  
               with respect to the quality, timeliness, and access to  
               health care services furnished to Medicaid beneficiaries; 
             c)   Recommendations for improving the quality of health care  
               services furnished by each plan;
             d)   As the State determines methodologically appropriate,  
               comparative information about all plans; and,
             e)   An assessment of the degree to which each health plan  
               has addressed effectively the recommendations for quality  
               improvement made by the EQRO during the previous year's  
               EQR. 

          3)Specialty mental health "carve out." The Medi-Cal Specialty  
            Mental Health Services Program is "carved-out" of the broader  
            Medi-Cal program and is administered by DHCS under a federal  
            waiver approved by the Centers for Medicare and Medicaid  
            Services (CMS). DHCS contracts with a MHP in each county to  
            provide or arrange for the provision of Medi-Cal specialty  
            mental health services. All MHPs are county mental health  
            departments. Specialty mental health services are Medi-Cal  
            entitlement services for adults and children that meet medical  
            necessity criteria, which consist of having a specific covered  
            diagnosis, functional impairment, and meeting intervention  
            criteria. MHPs must certify that they incurred a cost before  
            seeking federal reimbursement through claims to the State.  







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            MHPs are responsible for the non-federal share of Medi-Cal  
            specialty mental health services. Mental health services for  
            Medi-Cal beneficiaries who do not meet the criteria for  
            specialty mental health services are provided under the  
            broader Medi-Cal program either through managed care plans (by  
            primary care providers within their scope of practice) or  
            fee-for-service (for children exempt from mandatory enrollment  
            in Medi-Cal managed care). Children's specialty mental health  
            services are provided under the federal requirements of the  
            EPSDT benefit, which is available to full-scope beneficiaries  
            under age 21.

            DHCS has reported data on the number of children and youth  
            eligible to receive Medi-Cal services in 2013-14 as slightly  
            over 6 million. Of these 6 million children, 262,318 received  
            specialty mental health services, for a penetration rate of  
            4.4%. The count of children and youth with 5 or more specialty  
            mental health visits was 201,192, for a penetration rate of  
            3.3%. The average per beneficiary expenditure for approved  
            services in 2013-14 was $6,092.

            An estimated 66,000 children and youth are in foster care  
            under the jurisdiction of the juvenile court due a finding of  
            abuse or neglect or who have been removed from their home and  
            are under supervised probation. Except for foster youth in the  
            six county organized health systems (COHS, which operate in 22  
            counties), foster youth are exempt from mandatory enrollment  
            in Medi-Cal managed care plans.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee: 

          1)Ongoing costs likely in the hundreds of thousands per year for  
            the Department of Health Care Services to review county plans,  
            EQRO reports, and take necessary enforcement actions (General  
            Fund [GF] and federal funds).

          2)Ongoing costs of about $450,000 per year for additional items  
            to be reviewed by the external quality review organization (GF  
            and federal funds).








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          3)Likely administrative costs in the low millions for county  
            mental health plans to develop the required foster youth  
            mental health service plans (GF and federal funds). Much of  
            the information required for the plans is already possessed by  
            county mental health plans. However, there are likely to be  
            administrative costs to compile that information and develop  
            the required plans. Under the state constitution, the state  
            would be responsible for reimbursing counties for any  
            additional administrative costs incurred due to the bill.

          4)Unknown impact on the costs for counties to provide additional  
            specialty mental health services (local funds or GF and  
            federal funds). By increasing the scrutiny on the provision of  
            services to Medi-Cal beneficiaries by county mental health  
            plans, the bill may bring to light shortcomings in the  
            provision of those services (such as delays in access to  
            services or provider shortages). To the extent that occurs, it  
            may result in counties providing additional services. To the  
            extent that there is an increase is services due to the bill  
            and to the extent that counties could demonstrate that the  
            increase in utilization was due to the effects of the bill,  
            the state could be responsible for those costs. Whether that  
            would actually occur is unknown, as there is no formal process  
            yet in place for determining when and how the state should  
            reimburse counties for additional costs relating to realigned  
            programs.
          
          SUPPORT:  (Verified 5/31/16)

          National Center for Youth Law (source)

           ------------------------------------------------------ 
          |American Association for Marriage and Family Therapy, |
          |  California Division                                 |
          |Bay Area Youth Center                                 |
          |California Alliance of Child and Family Services      |
          |California Council of Community Behavioral Health     |
          |          Agencies                                    |
          |California Court Appointed Special Advocates          |
          |          Association                                 |
          |California Youth Connection                           |
          |California Youth Empowerment Network                  |
          |California Association of Marriage and Family         |
          |Therapists                                            |







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          |CASA of Santa Cruz County                             |
          |Center for the Study of Social Policy                 |
          |Children Now                                          |
          |Children's Advocacy Institute                         |
          |Consumer Watchdog                                     |
          |Contra Costa County                                   |
          |Family Voices of California                           |
          |First Focus Campaign for Children                     |
          |Hillsides                                             |
          |Jamestown Community Center, San Francisco             |
          |John Burton Foundation for Children Without Homes     |
          |Kids in Common                                        |
          |Mental Health America of California                   |
          |National Association of Social Workers, California    |
          |Chapter                                               |
          |Pacific Juvenile Defender Center                      |
          |Peers Envisioning and Engaging in Recovers Services   |
          |San Luis Obispo County Department of Social Services  |
          |The Children's Partnership                            |
          |Therapists for Peace & Justice                        |
          |Woodland Community College Foster and Kinship Care    |
          |Education                                             |
          |Therapists for Peace and Justice                      |
          |An individual                                         |
          |                                                      |
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          OPPOSITION:   (Verified5/31/16)


          County Behavioral Health Directors Association


          ARGUMENTS IN SUPPORT: This bill is sponsored by the National  
          Center for Youth Law, which argues the vast majority of  
          California's children and youth in foster care do not receive  
          safe, quality mental health services during their time in care  
          despite a well-documented need. An August 2011 report found  
          California's child welfare system reported only 34.7% of foster  
          children and youth received mental health services, excluding  
          medication and case management, well below national prevalence  
          rates showing need in 60% of the foster care population. At the  
          same time, 25% of foster children ages 6-17 are receiving one or  







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          more psychotropic medications and over 50% of children in group  
          homes are receiving these powerful drugs. Guidelines establish  
          that the decision to treat children with psychotropic  
          medications cannot be taken lightly, the benefits must outweigh  
          the risks, and other treatments must have been tried prior to  
          their use. Unfortunately, it is common for foster children to be  
          quickly referred for medication without other supports that will  
          help address their underlying mental and behavioral health  
          needs. This bill requires county mental health plans to create a  
          subsection for foster youth and include an annual foster care  
          mental health plan detailing the service array-from prevention  
          to crisis services-available to these children and youth to  
          enable the state and county to track access, quality and  
          outcomes specific to foster children.

          ARGUMENTS IN OPPOSITION: The County Behavioral Health Directors  
          Association (CBHDA) writes in opposition that this bill would  
          duplicate existing county reporting requirements. CBHDA argues  
          California's EQRO conducts reviews of county Medi-Cal Specialty  
          Mental Health Services annually. These reviews are conducted in  
          accordance with Medi-Cal regulations and address, in detail,  
          quality, outcomes, timeliness of services, and access to  
          services provided by Mental Health Plans. CBHDA states the  
          reporting requirements established in this bill will create  
          substantial county workload, and this duplicative demand on  
          county staffing would result in a net loss of available  
          resources to serve youth. Finally, CBHDA writes that it is  
          concerned about the requirements in the bill that would apply  
          Knox-Keene Act standards to counties, arguing county mental  
          health plans are in no way Knox-Keene full service managed care  
          plans and applying this standard is not appropriate. 

          Prepared by:Scott Bain / HEALTH /6/1/16 18:41:36
                                   ****  END  ****