BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 540
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     AB 540 (Beall) - As Amended:  April 7, 2011 

          Policy Committee:                              HealthVote:17-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes the Medi-Cal Alcohol and Drug Screening 
          and Brief Intervention (SBI) Services Matching program to draw 
          down federal funds to match voluntary county spending on 
          screening services for pregnant women and women of child bearing 
          age.  It also directs the Department of Health Care Services to 
          create a mechanism by which local drug treatment programs may 
          leverage federal Med-Cal funding for SBI services. 

           FISCAL EFFECT  

          1)One-time state administrative costs of $200,000 to $300,000 to 
            the Department of Health Care Services (DHCS) to develop and 
            manage a federal waiver to qualify local SBI expenditures for 
            matched funding. On-going state administrative costs in the 
            range of $50,000. This bill requires local programs to pay the 
            state costs associated with the program, but the mechanisms of 
            payment would need to be established by DHCS. 

          2)The DHCS submitted a budget change proposal on a similar 
            subject in 2008 that included $1.6 million (GF) and was 
            rejected by the Legislature. 

          3)Although this bill expresses legislative intent to not use any 
            GF to support the activities in the bill, it unclear the 
            workload to garner federal support and document local 
            expenditures can be accomplished without an initial GF 
            investment. 

          4)Potentially significant savings to the extent SBI reduces or 
            prevents substance abuse or results in improved birth 
            outcomes. 








                                                                  AB 540
                                                                  Page  2


          COMMENTS  

           1)Rationale  . The author indicates that new billing codes 
            approved by the federal government allow Medi-Cal 
            reimbursement for SBI services, and that the federal funding 
            opportunity is designed to increase the early identification 
            of individuals in need of treatment.  Some counties currently 
            screen individuals through county-funded prenatal SBI 
            programs, and the author states that this bill would allow 
            counties to receive reimbursement for the services provided.

           2)Screening and Brief Intervention (SBI)  .  SBI features 
            screening questions intended to identify and prevent risky 
            alcohol and substance abuse behavior before it causes health 
            problems or other personal problems. A recent study based on a 
            Kaiser Permanente trial in Northern California indicates that 
            SBI services for pregnant women result in better birth 
            outcomes. 

           3)Comprehensive Perinatal Services Program (CPSP).   CPSP is a 
            Medi-Cal program through which eligible women receive enhanced 
            perinatal services, including prenatal care, health education, 
            nutrition services, and psychosocial support for up to 60 days 
            after delivery of their infants.  The extent to which the 
            proposed program would interact with or compliment the CPSP is 
            unclear. 
           
            4)Related Legislation  . AB 1599 (Beall) in 2010 was similar to 
            this bill and was held on the Suspense File of this committee. 
             AB 1599 and the current bill do not appear to address the 
            concerns noted in the veto message for AB 217 (below). 

            AB 217 (Beall) in 2009 was similar to this bill and was vetoed 
            due to concerns about implementation and GF risk. 

            AB 2124 (Beall) in 2008 was similar to this bill and was held 
            on the Suspense File of the Senate Appropriations Committee. 

           Analysis Prepared by :    Lisa Murawski / APPR. / (916) 319-2081