BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 1401 --------------------------------------------------------------- |AUTHOR: |McGuire | |---------------+-----------------------------------------------| |VERSION: |March 28, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |April 13, 2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Scott Bain | --------------------------------------------------------------- SUBJECT : Pediatric and Home Care Expansion Act SUMMARY : Requires the Department of Health Care Services to develop at least 3 regional pilot projects in counties located in the San Francisco Bay Area, the Central Valley and Los Angeles County to increase access for children receiving Medi-Cal or California Children's Services Program benefits who are eligible for in-home, shift nursing care services by increasing private duty nursing reimbursement rates by 20% for participating licensed home health agencies. Sunsets the provisions of this bill on July 1, 2020. Existing law: 1)Establishes the Medi-Cal program, administered by the Department of Health Care Services (DHCS), under which qualified low-income individuals receive health care services. 2)Establishes a schedule of benefits under the Medi-Cal program, which includes Early and Periodic Diagnosis, Screening and Treatment (EPSDT) for any individual under 21 years of age, consistent with federal Medicaid requirements. Home health care services are covered Medi-Cal benefits, subject to utilization controls. 3)Establishes the California Childrens Services (CCS) Program to provide specified medical care and therapy services to children with CCS-eligible conditions. CCS eligible conditions are generally described in regulation and include severe genetic diseases, chronic medical conditions, infectious diseases producing major sequelae, and traumatic injuries. This bill: 1)Requires DHCS, on or before January 1, 2017, to establish at SB 1401 (McGuire) Page 2 of ? least three regional pilot projects, located in counties in the San Francisco Bay area, the Central Valley, and the County of Los Angeles, applicable to home health agencies that treat children who receive skilled nursing services through the Medi-Cal program. 2)Requires the three regional pilot project areas, at a minimum, to include the following counties: a) San Francisco Bay Area (Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma Counties); b) Central Valley region (Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare Counties); and, c) Los Angeles County. 3)Requires the pilot projects to be targeted to increase access to in-home, private duty nursing care for children receiving Medi-Cal benefits who are eligible for in-home, shift nursing care services and participate in the In-Home Operations Waiver (IHO), CCS, or EPSDT. 4)Increases the applicable reimbursement rate for licensed home health agencies that are currently providing private duty nursing care by 20% above the Medi-Cal rate schedule in effect as of July 1, 2015. Requires this increased reimbursement rate to remain in effect for at least three years. 5)Implements this bill only to the extent that federal financial participation is available. Requires DHCS to submit any necessary application to the federal Centers for Medicare and Medicaid Services for a state plan amendment, waiver, or amendment to a waiver to implement the pilot project. 6)Permits DHCS, in collaboration with home health agencies, to establish reasonable provider eligibility standards and participation requirements for the pilot projects. Requires collaborating home health agencies to include, but are not limited to, agencies in good standing with the Department of Public Health, agencies that are participating in the Medi-Cal program, and agencies that are accredited by the Accreditation Commission for Health Care. 7)Requires, no later than April 1, 2020, DHCS, or a qualified academic institution or other entity with which DHCS contracts, to submit a report evaluating the effectiveness of SB 1401 (McGuire) Page 3 of ? the pilot projects to the Senate Committee on Health, the Assembly Committee on Health, the Senate Committee on Budget and Fiscal Review, and the Assembly Committee on Budget. 8)Permits DHCS, in order to compare access to necessary and approved services before and after the establishment of the pilot projects, to request participating home health agencies to report on key access to care indicators identified by DHCS, the participating agencies, and referring hospitals. Requires the key access to care indicators to include, but need not be limited to: a) The increase or decrease in hospital discharges to home health agencies' b) The number of nursing hours filled, as compared to the number of hours that have been approved; and, c) The number of available licensed home health agencies that accept pediatric patients. 9)Requires DHCS, in evaluating the effectiveness of the pilot projects, to cooperate with, and consider input from, home health agencies, consumer groups, hospitals, and other provider associations. 10)Makes legislative findings and declarations regarding home care services, the pediatric patients served by home health agencies, federal Medicaid law regarding reimbursement, barriers to home health services, the reduction in home health services to Medi-Cal patients. 11)Sunsets this bill on July 1, 2020, and repeals its provisions January 1, 2021. FISCAL EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : 1)Author's statement. According to the author, there are almost 5,000 children statewide with severe long term, complex and catastrophic health needs eligible for Medi-Cal in-home nursing care. Most of these children are medically fragile, permanently disabled, are on continuous life support or require life-sustaining equipment such as ventilators and feeding tubes. In-home skilled nursing care allows these children to be safely discharged from expensive ICU-level hospital care back into their homes at a fraction of the cost to the state. In the last decade, Californians have seen SB 1401 (McGuire) Page 4 of ? growing barriers to accessing care. Factors such as out-of-date reimbursement rates and difficulty recruiting nurses with a unique combination of skills have resulted in waiting lists and in some counties, no in-home care options. Typically, medically fragile children are being treated in expensive neonatal or pediatric intensive care units but can come home if the appropriate care is available. Without the access to skilled in-home nursing, the state is unnecessarily spending limited resources and preventing children from being at home with their families. This bill provide a targeted Medi-Cal rate increase paid to eligible licensed home health agencies for private duty nursing services provided to children in three regional pilot areas that are currently facing access to care challenges. 2)Background on Medi-Cal coverage of home health services. Medi-Cal coverage of home health agency services is outlined in its manual of criteria. In order for a patient to be eligible to receive home health agency services, the patient must have a medical condition requiring skilled care so as to prevent further disability and/or promote improvement, and the patient's medical condition for which services are being prescribed must be reasonably responsive to the prescribed service. Home health services are authorized only after being prescribed by a physician as to the extent and duration of the services and in accordance with a written treatment plan. The treatment plan must be reviewed by a physician every 60 days. The treatment plan must include a need for one or more covered services such as skilled nursing care, physical therapy, occupational therapy, speech therapy, medical social worker, home health aide, and appropriate medical supplies. Medi-Cal covers home health agency services in the following two general situations: a) During the convalescent phase of post-hospital or institutional discharge or during the convalescent phase following an acute episode or exacerbation of an illness of a homebound patient; and, b) When a homebound patient can be maintained at home in lieu of institutional placement with skilled nursing or other care. Home health agency rates were reduced by 1% in 2009 but home health agencies were not subject to the 10% rate reduction required by AB 97 (Committee on Budget, Chapter 3, Statutes of 2011), because of potential access concerns. Home health agency rates were last increased in 2001. SB 1401 (McGuire) Page 5 of ? 1)Study on home health access for Medi-Cal patients. A 2015 study by Leavitt Partners funded by Maxim Healthcare Services (a home health agency) entitled "Analysis of California Home Health Care: Decreasing Access for Medi-Cal Patients" found that while total capacity of the home health care market is growing, services available for Medi-Cal patients have remained stagnant since 2002. The report states significant growth in new Medi-Cal enrollees and lack of growth in agencies willing to provide services to enrollees suggests a substantial access-to-care gap materializing between Medi-Cal patients and non-Medi-Cal patients for home health services. Key findings from the report are as follows: a) That the Medi-Cal population has grown by 39% in seven years (1.8 million more people), while the number of home health visits provided to Medi-Cal patients has stayed relatively stable during the same time period; An increasing percentage of home health agencies are not treating Medi-Cal patients (22% in 2002 to 56% in 2013); b) Home health agencies are significantly more likely to immediately accept new patients if they are privately insured than if they are on Medi-Cal; c) 60% of all the agencies treating Medi-Cal patients are only able to provide 0 to 25% of the approved hours to Medi-Cal patients; d) 17% of all agencies have a cap on the number of Medi-Cal patients they will accept; and, e) By 2018, only four in 10 Medi-Cal certified agencies will actually accept Medi-Cal patients in a given year. The report concluded that the movement of home health agencies away from providing services to Medi-Cal suggests three important conclusions: a) Growth in the home health care market has not increased access to care for Medi-Cal patients as might have been expected; b) When entering the home health market, new agencies are less likely to provide services to Medi-Cal patients; and, c) Access-to-care problems are exacerbated for certain sub-populations, such as high-needs pediatric patients. 1)Support. This bill is supported by home health agencies and children's specialty providers. Maxim Healthcare Services (Maxim) writes in support that children throughout the state SB 1401 (McGuire) Page 6 of ? with severe medical conditions are eligible for in-home nursing services through Medi-Cal, but the current fee schedule causes access problems for in-home nursing services as inadequate reimbursement rates to licensed home health agencies restrict their ability to recruit and retain nurses for this medically fragile pediatric population. When in-home nursing services are not readily available, these children are treated in expensive hospital neonatal or pediatric intensive care units longer than necessary or they are being discharged to family members without trained nurses available to assist these families. A likely result of the poor access is longer hospital admissions days or readmissions due to the lack of nursing care available in the community. Maxim states this bill addresses this urgent problem by establishing a pilot project in three geographic areas where home health agency Medi-Cal reimbursement rates are increased by 20%. To provide accountability for the rate increase, this bill requires data to be reported to the Legislature on the effectiveness of the pilot by assessing the number of nursing hours provided and Medi-Cal savings through moving children from hospital stays and to care in their homes. Maxim concludes that, without an increase in reimbursement rates, the access gap to home health agency service will continue to grow, as fewer home health agencies are willing to accept Medi-Cal patients, which will result in increased wait times for those seeking in-home nursing services and higher state costs as these patients remain in acute care hospitals. SUPPORT AND OPPOSITION : Support: American Academy of Pediatrics, California California Association for Health Services at Home California Children's Hospital Association Children's Specialty Care Coalition Premier Health Maxim Healthcare Services An individual Oppose: None received -- END