BILL ANALYSIS Ó SB 1466 Page 1 Date of Hearing: June 14, 2016 ASSEMBLY COMMITTEE ON HEALTH Jim Wood, Chair SB 1466 (Mitchell) - As Amended May 31, 2016 SENATE VOTE: 39-0 SUBJECT: Early and Periodic Screening, Diagnosis, and Treatment Program: trauma screening. SUMMARY: Requires that screening services provided under the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) Program include screening for trauma and establishes that eligible Medi-Cal children who are found to have experienced trauma and have been abused, neglected, or removed from the home to be referred to county mental health plans (MHPs) for assessment for specialty mental health services. Defines trauma as any physiological response to an event, series of events, or set of circumstances that is experienced by an individual as physically or emotionally harmful or life threatening and that has lasting adverse effects on the individual's functional and mental, physical, social, emotional, or spiritual well-being. EXISTING FEDERAL LAW: Places responsibility for caring for a child who has been removed from home and placed in foster care SB 1466 Page 2 with the state and any public agency which is administering the foster care plan with the state. EXISTING STATE 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 EPSDT for any individual less than 21 years of age, consistent with federal Medicaid requirements. Defines, through regulation, "screening services" for purposes of EPSDT to mean: a) An initial, periodic, or additional health assessment of a Medi-Cal eligible individual under 21 years of age provided in accordance with the requirements of the Child Health and Disability Prevention (CHDP) program; b) A health assessment, examination, or evaluation of a Medi-Cal eligible individual under 21 years of age by a licensed health care professional acting within his or her scope of practice, at intervals other than the CHDP intervals, to determine the existence of physical or mental illnesses or conditions; or, c) Any other encounter with a licensed health care professional that results in the determination of the existence of a suspected illness or condition or a change or complication in a condition for a Medi-Cal eligible person under 21 years of age. 3)Requires MHPs to provide specialty mental health services to eligible Medi-Cal beneficiaries, including both adults and children. Includes EPSDT within the scope of specialty mental health services for eligible Medi-Cal beneficiaries under the age of 21 pursuant to federal Medicaid law. SB 1466 Page 3 4)Requires DHCS, in collaboration with the California Health and Human Services Agency, and in consultation with the Mental Health Services Oversight and Accountability Commission, to create a plan for a performance outcome system for EPSDT mental health services provided to eligible Medi-Cal beneficiaries under the age of 21. 5)Establishes the MHSA, enacted by voters in 2004 by Proposition 63, to provide funds to counties to expand services, develop innovative programs, and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Increased costs in the low millions per year for additional screening provided to Medi-Cal eligible children (General Fund (GF) and federal funds). By specifically requiring screening for trauma, this bill is likely to increase the costs to provide screening services due to additional time spent by providers with eligible children. 2)Increased costs of $5 million to $10 million per year to provide assessments for specialty mental health services by county MHPs (GF and federal funds). This bill would require all children who have been removed from the home to be assessed by a county mental health plan for specialty mental health services. There are about 15,000 new foster care placements per year in the state. The cost to provide an assessment for specialty mental health services is around $500. 3)Likely increase in specialty mental health services in the hundreds of millions per year (GF and federal funds). Under this bill, about 6.5 million children are likely to get SB 1466 Page 4 additional screening for trauma. It is likely that the requirement for additional screening in this bill will result in a significant number of children being referred for specialty mental health services who are not currently receiving those services. 4)Unknown potential future costs savings for Medi-Cal services (GF, federal funds, local funds). Under this bill, it is likely that a significant number of Medi-Cal children will be determined to have experienced trauma and are in need of mental health services - over and above those who are currently being identified. By identifying those children, it is possible that early mental health interventions could improve those children's long-term prognoses and reduce future costs, such as psychiatric hospitalizations and other health care costs associated with trauma (for example health care services related to alcohol or substance abuse). COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, children in foster care have suffered from abuse, neglect, or exploitation, and have suffered secondary trauma as a result of being removed from their parents. This bill is needed to ensure that distressed children are appropriately screened for trauma without delay. Under California law, the treatment of children's mental health needs is determined by the severity of the diagnosis. Because we do not currently screen under EPSTD for trauma, we run the risk of delaying treatment to this vulnerable population because of this complicated delivery model. By requiring trauma screening by a designated agency on the front-end, we minimize possible delays in critically-needed treatment. 2)BACKGROUND. SB 1466 Page 5 a) ESPDT. EPSDT is a Medi-Cal benefit for individuals under the age 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 services include all services otherwise covered by Medi-Cal and EPSDT beneficiaries can receive additional medically necessary services. EPSDT mental health services are Medi-Cal services that correct or improve mental health problems that have been determined by a physician, psychologist, counselor, social worker, or other health or social services provider. EPSDT provides eligible children access to a range of mental health services that include, but are not limited to: i) Mental health assessment; ii) Collateral contracts; iii) Therapy; iv) Rehabilitation; v) Mental health services; vi) Medication support services; vii) Day rehabilitation; day treatment intensive; SB 1466 Page 6 viii) Crisis intervention/stabilization; ix) Targeted case management; and, x) Therapeutic behavioral services. a) Section 1915(b) Medi-Cal Specialty Mental Health Services Waiver. Specialty Medi-Cal mental health services are provided under the terms of the federal Medicaid/Medi-Cal Specialty Mental Health Services Consolidation 1915(b) waiver program. The waiver established a managed care program for specialty mental health services separate from the overall Medi-Cal program. Medi-Cal beneficiaries must receive specialty mental health services through county-operated MHPs. County MHPs provide services directly or through contracts in the local community using a combination of county funds, realignment revenues, and Mental Health Services Act funds. Counties pay for services locally, incurring Certified Public Expenditures, which the state then uses as the state match to claim federal Medicaid reimbursement and the state, in turn, returns the federal funds to the county MHPs. The Medi-Cal Specialty Mental Health Services Consolidation waiver has been in place since the mid-1990s and was approved for a new five-year term, from July 1, 2015, through June 30, 2020. 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 or 4.4%, received specialty mental health services. The count of children and youth with five or more specialty mental health visits was SB 1466 Page 7 201,192 or 3.3%. The average per beneficiary expenditure for approved services in 2013-14 was $6,092. b) Federal Guidance. A 2013 letter from the U.S. Department of Health and Human Services encouraged state social services and Medicaid directors to use trauma-focused screening, assessments, and evidence-based practices. "Complex trauma is a common yet serious concern for children, especially those referred to child welfare services. Rates of trauma exposure are approximately 90% among children in foster care," said the letter, which was signed by the directors of three key federal agencies. The letter drew a link between high rates of untreated, complex trauma and high prescribing rates of psychotropic medications for foster youth. "These high rates of trauma have far-reaching consequences. The term "complex trauma" describes children's exposure to multiple or prolonged traumatic events, which are often invasive and interpersonal in nature. Complex trauma exposure involves the simultaneous or sequential occurrence of child maltreatment, including psychological maltreatment, neglect, exposure to violence and physical and sexual abuse. c) Class Action Lawsuit. In 2002, plaintiffs filed a class action lawsuit, Katie A. vs Bonta 2.02-cv-5662 (C.D. Cal.), alleging violations of federal Medicaid laws, and the American with Disabilities Act. The suit sought to improve the provision of mental health and supportive services for children and youth in, or at imminent risk of placement in, foster care in California. Katie A. entered foster care at age four, received a mental health assessment at age five, and, by age 14, had been assigned 37 foster care placements, 19 psychiatric institution placements, and seven stays in children's shelters. The Katie A. lawsuit alleged a failure to properly assess her mental health needs, a failure to provide adequate SB 1466 Page 8 mental health treatment and an overuse of congregate and shelter care. A subsequent settlement requires children in foster care, who are being considered for high-level group care, inpatient psychiatric care or other intensive treatments, as specified, to be eligible for EPSDT services. The state subsequently developed a series of intensive mental health services for such children, a manual for care coordination between state and local mental health and child welfare providers, and a program of therapeutic foster care. 3)SUPPORT. Californians for Safety and Justice (CSJ) writes in support that this bill ensures that medical professionals conducting already mandated health screenings look for signs of trauma to ensure that children who have suffered trauma receive the care they need - care they are legally entitled to receive. In light of the overwhelming evidence confirming the traumatic nature of child abuse and neglect and the secondary trauma of removal from one's home, this measure unambiguously establishes that foster children have suffered trauma and should be assessed for appropriate EPSDT services. CSJ argues that the state has the legal and moral obligation to act as the parent of all children in the child welfare system, and this bill is consistent with long-standing policies that ensure children in the child welfare system receive the best possible care that will help them thrive as adults. The San Luis Obispo County Department of Social Services (SLOCDSS) states that it serves, in conjunction with its partners in the County Probation Department, over 300 foster children who have experienced abuse or neglect that span the spectrum of severity. SLOCDSS states it has encountered difficulties in ensuring that these children receive the therapeutic services they need, as mental health providers debate with one another over the relative severity of the trauma these children have endured. Too often, these children-especially those who suffered secondary trauma as a result of being removed from their caregivers-are shuffled back and forth between unresponsive systems of care, are SB 1466 Page 9 denied the therapy they need to heal from the impacts of trauma, and ultimately suffer the cumulative effects of untreated trauma as they transition to adulthood. 4)RELATED LEGISLATION. SB 1291 (Beall) requires each county MHP 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. In addition, SB 1291 requires a MHP review to be conducted annually by an external quality review organization that includes specific data for Medi-Cal eligible children and youth under the jurisdiction of the juvenile court and their families. SB 1291 is pending in this Committee. 5)PREVIOUS LEGISLATION. SB 1009 (Committee on Budget and Fiscal Review), Chapter 34, Statutes of 2012), requires DHCS, in collaboration with the California Health and Human Services Agency, and in consultation with the Mental Health Services Oversight and Accountability Commission and a stakeholder advisory committee to develop a plan for a performance outcomes system for EPSDT specialty mental health services provided to eligible Medi-Cal beneficiaries under the age of 21. The purpose of the system is to improve beneficiary outcomes and inform decisions regarding the purchase of services. 6)DOUBLE REFERRAL. This bill is double-referred and upon passage will be referred to the Committee on Human Services. REGISTERED SUPPORT / OPPOSITION: Support SB 1466 Page 10 Californians for Safety and Justice (co-sponsor) Youth Law Center (co-sponsor) Advokids Alliance for Children's Rights California Alliance of Child and Family Services California Pan-Ethnic Health Network Children Now County Welfare Directors Association of California Fight Crime Invest in Kids California Futures Without Violence National Health Law Program San Luis Obispo County Department of Social Services Western Center on Law and Poverty SB 1466 Page 11 Youth Law Center Opposition None on file. Analysis Prepared by:Paula Villescaz / HEALTH / (916) 319-2097