Bill Text: CA AB2577 | 2013-2014 | Regular Session | Enrolled
Bill Title: Medi-Cal: ground emergency medical transportation services.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB2577 Detail]
Download: California-2013-AB2577-Enrolled.html
BILL NUMBER: AB 2577 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 27, 2014
PASSED THE ASSEMBLY AUGUST 28, 2014
AMENDED IN SENATE AUGUST 22, 2014
AMENDED IN SENATE JUNE 12, 2014
AMENDED IN ASSEMBLY MAY 23, 2014
AMENDED IN ASSEMBLY MAY 1, 2014
AMENDED IN ASSEMBLY APRIL 7, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Members Cooley and Pan
FEBRUARY 21, 2014
An act to amend Section 14105.94 of, and to add Section 14105.941
to, the Welfare and Institutions Code, relating to Medi-Cal.
LEGISLATIVE COUNSEL'S DIGEST
AB 2577, Cooley. Medi-Cal: ground emergency medical transportation
services.
Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Care Services, and
under which qualified low-income individuals receive health care
services. The Medi-Cal program is, in part, governed and funded by
federal Medicaid Program provisions. Existing law authorizes certain
ground emergency medical transportation providers to receive
supplemental Medi-Cal reimbursement in addition to the rate of
payment the provider would otherwise receive for those services.
Existing law provides that participation in the supplemental
reimbursement program by an eligible provider is voluntary, and
requires the nonfederal share of the supplemental reimbursement to be
paid only with funds from specified governmental entities.
This bill would authorize the department to provide supplemental
reimbursement under these provisions for the cost of paramedic
services at a rate of payment equal to cost.
This bill would also require the department to develop and
implement an intergovernmental transfer (IGT) program in order to
increase capitation payments to Medi-Cal managed care plans for
covered ground emergency medical transportation services, as
specified. The bill would require the department to implement the IGT
program on January 1, 2015, or a later date if otherwise required
pursuant to any necessary federal approvals obtained. The bill would
provide that participation in the IGTs is voluntary on the part of
the transferring entity and would require Medi-Cal managed care plans
to pay 100% of any amount of increased capitation payments made to
eligible providers for providing and making available ground
emergency medical transportation services.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14105.94 of the Welfare and Institutions Code
is amended to read:
14105.94. (a) An eligible provider, as described in subdivision
(b), may, in addition to the rate of payment that the provider would
otherwise receive for Medi-Cal ground emergency medical
transportation services, receive supplemental Medi-Cal reimbursement
to the extent provided in this section.
(b) A provider shall be eligible for supplemental reimbursement
only if the provider has all of the following characteristics
continuously during a state fiscal year:
(1) Provides ground emergency medical transportation services to
Medi-Cal beneficiaries.
(2) Is a provider that is enrolled as a Medi-Cal provider for the
period being claimed.
(3) Is owned or operated by the state, a city, county, city and
county, fire protection district organized pursuant to Part 2.7
(commencing with Section 13800) of Division 12 of the Health and
Safety Code, special district organized pursuant to Chapter 1
(commencing with Section 58000) of Division 1 of Title 6 of the
Government Code, community services district organized pursuant to
Part 1 (commencing with Section 61000) of Division 3 of Title 6 of
the Government Code, health care district organized pursuant to
Chapter 1 (commencing with Section 32000) of Division 23 of the
Health and Safety Code, or a federally recognized Indian tribe.
(c) An eligible provider's supplemental reimbursement pursuant to
this section shall be calculated and paid as follows:
(1) The supplemental reimbursement to an eligible provider, as
described in subdivision (b), shall be equal to the amount of federal
financial participation received as a result of the claims submitted
pursuant to paragraph (2) of subdivision (f).
(2) In no instance shall the amount certified pursuant to
paragraph (1) of subdivision (e), when combined with the amount
received from all other sources of reimbursement from the Medi-Cal
program, exceed 100 percent of actual costs, as determined pursuant
to the Medi-Cal State Plan, for ground emergency medical
transportation services.
(3) The supplemental Medi-Cal reimbursement provided by this
section shall be distributed exclusively to eligible providers under
a payment methodology based on ground emergency medical
transportation services provided to Medi-Cal beneficiaries by
eligible providers on a per-transport basis or other federally
permissible basis. The department may, to the extent permitted under
federal law and regulations, provide supplemental reimbursement for
the cost of paramedic services at a rate of payment equal to cost.
The department shall obtain approval from the federal Centers for
Medicare and Medicaid Services for the payment methodology to be
utilized, and may not make any payment pursuant to this section prior
to obtaining that approval.
(d) (1) It is the Legislature's intent in enacting this section to
provide the supplemental reimbursement described in this section
without any expenditure from the General Fund. An eligible provider,
as a condition of receiving supplemental reimbursement pursuant to
this section, shall enter into, and maintain, an agreement with the
department for the purposes of implementing this section and
reimbursing the department for the costs of administering this
section.
(2) The nonfederal share of the supplemental reimbursement
submitted to the federal Centers for Medicare and Medicaid Services
for purposes of claiming federal financial participation shall be
paid only with funds from the governmental entities described in
paragraph (3) of subdivision (b) and certified to the state as
provided in subdivision (e).
(e) Participation in the program by an eligible provider described
in this section is voluntary. If an applicable governmental entity
elects to seek supplemental reimbursement pursuant to this section on
behalf of an eligible provider owned or operated by the entity, as
described in paragraph (3) of subdivision (b), the governmental
entity shall do all of the following:
(1) Certify, in conformity with the requirements of Section 433.51
of Title 42 of the Code of Federal Regulations, that the claimed
expenditures for the ground emergency medical transportation services
are eligible for federal financial participation.
(2) Provide evidence supporting the certification as specified by
the department.
(3) Submit data as specified by the department to determine the
appropriate amounts to claim as expenditures qualifying for federal
financial participation.
(4) Keep, maintain, and have readily retrievable, any records
specified by the department to fully disclose reimbursement amounts
to which the eligible provider is entitled, and any other records
required by the federal Centers for Medicare and Medicaid Services.
(f) (1) The department shall promptly seek any necessary federal
approvals for the implementation of this section. The department may
limit the program to those costs that are allowable expenditures
under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et
seq.). If federal approval is not obtained for implementation of
this section, this section shall not be implemented.
(2) The department shall submit claims for federal financial
participation for the expenditures for the services described in
subdivision (e) that are allowable expenditures under federal law.
(3) The department shall, on an annual basis, submit any necessary
materials to the federal government to provide assurances that
claims for federal financial participation will include only those
expenditures that are allowable under federal law.
(g) (1) If either a final judicial determination is made by any
court of appellate jurisdiction or a final determination is made by
the administrator of the federal Centers for Medicare and Medicaid
Services that the supplemental reimbursement provided for in this
section must be made to any provider not described in this section,
the director shall execute a declaration stating that the
determination has been made and on that date this section shall
become inoperative.
(2) The declaration executed pursuant to this subdivision shall be
retained by the director, provided to the fiscal and appropriate
policy committees of the Legislature, the Secretary of State, the
Secretary of the Senate, the Chief Clerk of the Assembly, and the
Legislative Counsel, and posted on the department's Internet Web
site.
(h) Notwithstanding Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code, the
department may implement and administer this section by means of
provider bulletins, or similar instructions, without taking
regulatory action.
SEC. 2. Section 14105.941 is added to the Welfare and Institutions
Code, immediately following Section 14105.94, to read:
14105.941. (a) The department shall design and implement, in
consultation with eligible providers as described in subdivision (b),
an intergovernmental transfer program relating to Medi-Cal managed
care, ground emergency medical transport services in order to
increase capitation payments for the purpose of increasing
reimbursement to eligible providers.
(b) A provider shall be eligible for increased reimbursement
pursuant to this section only if the provider meets both of the
following conditions in an applicable state fiscal year:
(1) Provides ground emergency medical transport services to
Medi-Cal managed care enrollees pursuant to a contract or other
arrangement with a Medi-Cal managed care plan.
(2) Is owned or operated by the state, a city, county, city and
county, fire protection district organized pursuant to Part 2.7
(commencing with Section 13800) of Division 12 of the Health and
Safety Code, special district organized pursuant to Chapter 1
(commencing with Section 58000) of Division 1 of Title 6 of the
Government Code, community services district organized pursuant to
Part 1 (commencing with Section 61000) of Division 3 of Title 6 of
the Government Code, health care district organized pursuant to
Chapter 1 (commencing with Section 32000) of Division 23 of the
Health and Safety Code, or a federally recognized Indian tribe.
(c) (1) To the extent intergovernmental transfers are voluntarily
made by, and accepted from, an eligible provider described in
subdivision (b), or a governmental entity affiliated with an eligible
provider, the department shall make increased capitation payments to
applicable Medi-Cal managed care plans for covered ground emergency
medical transportation services.
(2) The increased capitation payments made pursuant to this
section shall be in amounts actuarially equivalent to the
supplemental fee-for-service payments available for eligible
providers pursuant to Section 14105.94, to the extent permissible
under federal law.
(3) Except as provided in subdivision (f), all funds associated
with intergovernmental transfers made and accepted pursuant to this
section shall be used to fund additional payments to eligible
providers.
(4) Medi-Cal managed care plans shall pay 100 percent of any
amount of increased capitation payments made pursuant to this section
to eligible providers for providing and making available ground
emergency medical transportation services pursuant to a contract or
other arrangement with a Medi-Cal managed care plan.
(d) The intergovernmental transfer program developed pursuant to
this section shall be implemented on January 1, 2015, or a later date
if otherwise required pursuant to any necessary federal approvals
obtained, and only to the extent intergovernmental transfers from the
eligible provider, or the governmental entity with which it is
affiliated, are provided for this purpose. To the extent permitted by
federal law, the department may implement the intergovernmental
transfer program and increased capitation payments pursuant to this
section on a retroactive basis as needed.
(e) Participation in the intergovernmental transfers under this
section is voluntary on the part of the transferring entities for
purposes of all applicable federal laws.
(f) This section shall be implemented without any additional
expenditure from the state General Fund. As a condition of
participation under this section, each eligible provider as described
in subdivision (b), or the governmental entity affiliated with an
eligible provider, shall agree to reimburse the department for any
costs associated with implementing this section. Intergovernmental
transfers described in this section are not subject to the
administrative fee assessed under paragraph (1) of subdivision (d) of
Section 14301.4.
(g) As a condition of participation under this section, Medi-Cal
managed care plans, eligible providers as described in subdivision
(b), and governmental entities affiliated with eligible providers
shall agree to comply with any requests for information or similar
data requirements imposed by the department for purposes of obtaining
supporting documentation necessary to claim federal funds or to
obtain federal approvals.
(h) This section shall be implemented only if and to the extent
federal financial participation is available and is not otherwise
jeopardized, and any necessary federal approvals have been obtained.
(i) To the extent that the director determines that the payments
made pursuant to this section do not comply with federal Medicaid
requirements, the director retains the discretion to return or not
accept an intergovernmental transfer, and may adjust payments
pursuant to this section as necessary to comply with federal Medicaid
requirements.
(j) To the extent federal approval is obtained, the increased
capitation payments under this section may commence for dates of
service on or after January 1, 2015.
(k) Notwithstanding Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code, the
department may implement, interpret, or make specific this section by
means of all-county letters, plan letters, plan or provider
bulletins, or similar instructions, without taking regulatory action.
