BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1291| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 1291 Page 2 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 SB 1291 Page 3 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); SB 1291 Page 4 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 SB 1291 Page 5 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. SB 1291 Page 6 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). SB 1291 Page 7 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 | SB 1291 Page 8 |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 | | | ------------------------------------------------------ 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 SB 1291 Page 9 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 ****