BILL ANALYSIS �
SB 870
Page 1
( Without Reference to File )
SENATE THIRD READING
SB 870 (Budget and Fiscal Review Committee)
As Amended June 13, 2014
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE :Vote not relevant
SUMMARY : This is one of two Omnibus Health Trailer Bills for
2014-15. This bill contains necessary changes related to the
Budget Act of 2014. This bill makes various statutory changes
to implement the 2014-15 budget. Specifically, this bill :
1)Requires behavioral health treatment (BHT) to be a covered
Medi-Cal service for individuals under age 21 to the extent
required by the federal government. Requires the Department
of Health Care Services (DHCS) to implement this benefit only
after: a) receiving all necessary federal approvals to obtain
federal funds for these services; b) an appropriation for
necessary state funding has been made; and c) DHCS has
consulted with stakeholders. Authorizes DHCS to enter into
new contracts, and amend existing contracts, to provide or
arrange for BHT services. Authorizes DHCS to seek approval of
necessary state plan amendments or waivers to implement this
benefit.
2)Expresses the intent of the Legislature that Medi-Cal rates be
adjusted on an ongoing basis to ensure adequate access to
services based on access monitoring performed by DHCS.
3)Increases the Medi-Cal reimbursement rates for Programs of All
Inclusive Care for the Elderly (PACE), beginning April 1,
2015, by increasing payments from a minimum of 90% of the
equivalent fee-for-service cost to a minimum of 95% of the
equivalent fee-for-service cost.
4)Authorizes DHCS to collect supplemental rebates on specialty
high cost drugs, such as hepatitis C treatments and blood
factor. Requires DHCS to set the clinical guidelines for
these drugs. Requires that capitation payments to managed
care plans be reduced to account for these classes of drugs,
and instead, provide plans with a "kick" payment when drugs in
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the class are prescribed.
5)Establishes a three-year pilot program in Los Angeles County
to enable school districts to allow students enrolled in
Medi-Cal managed care plans to receive vision care services at
school through a mobile vision service provider. Requires the
Medi-Cal managed care plans in a participating county to
contract with one or more mobile vision care service providers
to deliver the services if a school district enters into a
memorandum of understanding with a mobile vision care service
provider. Requires the Medi-Cal managed care plan to
compensate the mobile vision services provider for the cost of
the vision examination, dispensing of the lenses, and eyeglass
frames. Requires DHCS to annually adjust capitation rates for
participating Medi-Cal managed care plans.
6)Authorizes a one-time appropriation of $3.2 million from the
Major Risk Medical Insurance Fund to be allocated to health
benefit plans that are funded by contributions made by
agricultural employers, where 85% or more of the plan's
eligible participants are agricultural employees for work
performed and covered under a collective bargaining agreement,
and meet other specified requirements.
7)Authorizes a one-time appropriation of $37.5 million from the
Major Risk Medical Insurance Fund to be allocated to DHCS for
purposes of electronic health records technical assistance in
accordance with the State Medicaid Health Information
Technology Plan, as specified in Welfare and Institutions Code
Section 14046.1.
8)Requires the Department of Public Health (DPH) to establish up
to four two-year public health demonstration projects by
awarding competitive grants for innovative, evidence-based
approaches to provide outreach, human immunodeficiency virus
(HIV) and hepatitis C screenings, and linkage to, and
retention in, quality health care for vulnerable and
underserved individuals with a high risk for HIV infection.
Requires DPH to evaluate the projects to determine statewide
applicability and specifies the qualifications of grant
applicants.
9)Authorizes the Office of Statewide Health Planning and
Development to make grants, through contracts with medical
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residency programs, to support new residency slots that meet
all of the qualifications of the Song Brown Program. Requires
that the new residency slots, in order to receive financial
support, give priority to graduates of California-based
medical schools.
10)Reappropriates Department of Developmental Services Funds.
COMMENT : This bill is a budget trailer bill within the 2014-15
budget package to implement actions taken affecting the
Departments of Developmental Services, Health Care Services and
Public Health, and the Office of Statewide Health Planning and
Development.
Analysis prepared by : Andrea Margolis / BUDGET / (916)
319-2099
FN: 0003961