BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1445 
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 1445 (Chesbro) - As Amended:  April 15, 2009  

          Policy Committee:                              Health Vote:17-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes reimbursement to federally qualified health  
          centers (FQHCs) and rural health centers (RHCs) for multiple  
          visits for a single patient, in the same day, under specified  
          conditions. 

           FISCAL EFFECT  

          Annual costs of $1.7 million (50% GF) to provide an additional  
          11,500 same-day visits. This estimate assumes that less than  
          half of FQHCs and RHCs provide mental health services, which is  
          the most likely kind of visit to be added to an existing visit  
          for patients in need of additional care. In addition, of those  
          clinics providing mental health services, only a small  
          proportion provides same day appointments for mental health.  
          Single patient visits are reimbursed at a rate of $151 each. 

           COMMENTS  

           1)Rationale  . This bill, sponsored by the California Primary Care  
            Association (CPCA), authorizes FQHCs and RHCs to provide  
            medical and mental health services to a patient in a single  
            day and be reimbursed for each service. Under current state  
            law, payment may be made for patients seen for more than one  
            type service. However, the services are reimbursed as a single  
            visit. Federal law allows for same-day medical and mental  
            health services to be reimbursed separately. This bill creates  
            this reimbursement option under state law. 

           2)Clinic Mental Health Treatment  . Mental health diagnoses are  
            the third most common condition requiring treatment in  
            community health center settings. Early intervention with  








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            mental health issues may reduce costly emergency care and  
            crisis-intervention services. In addition, effective mental  
            health treatment has been shown to reduce the need for other  
            medical services. Integration of mental health services in a  
            primary care setting has been shown to be particularly  
            effective. However, such integration is difficult to achieve  
            without financing and infrastructure to support such  
            integration. This bill increases the ability of clinics to  
            integrate behavioral health services. 

           3)Background  . FQHCs and RHCs are a type of provider defined by  
            federal Medicaid and Medicare statutes. These designations  
            enable qualified providers in medically underserved areas to  
            receive enhanced reimbursement and allows for the direct  
            reimbursement of nurse practitioners, physician assistants,  
            and certified nurse midwives. These clinics provide  
            comprehensive primary health, dental, and mental health  
            services to beneficiaries of all ages throughout urban and  
            rural communities statewide. 

          There are several hundred community clinic FQHCs statewide that  
            provide medical care to patients in underserved communities  
            more than 6 million times each year. About 40 % of the  
            patients served in these clinics are covered by Medi-Cal while  
            the remainder are Medicare beneficiaries or uninsured. The  
            enhanced rates paid to these clinics, above the typical  
            Medi-Cal rates, accounts for the significant portion of  
            uncompensated care they provide statewide. 

          4)  Related Legislation  . SB 260 (Steinberg) in 2007 was similar  
            to this bill and vetoed due to concerns about impacts of the  
            bill on rate calculations. AB 1445 partially addresses this  
            concern. 

            SB 238 (Aanestaad), Chapter 638, statutes of 2007 adds dental  
            hygienist or dental hygienist in alternative practice to the  
            list of professionals who may provide services that compose a  
            reimbursable visit to a FQHC or a RHC.

            AB 363 (Berg) in 2007 authorized FQHCs to request enhanced  
            Medi-Cal reimbursement on behalf of patients served at  
            locations other than the FQHC pursuant to a written  
            professional services agreement. AB 363 was held on the  
            Suspense File of the Senate Appropriations Committee. 









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           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081