REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  July  17, 2018
CATEGORY:  Consent - Health and Human Services-8.

SUBJECT:

Retroactive Amendment with California Department of Health Care Services for the Mental Health Plan

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Donnell Ewert, Director, Health and Human Services Agency, (530) 225-5899

STAFF REPORT APPROVED BY:  Donnell Ewert, Select Title, Health and Human Services Agency

RECOMMENDATION

Adopt a resolution which: (1) Approves a retroactive revenue amendment (No. 12-89397 A01) with California Department of Health Care Services (DHCS) for the Mental Health Plan (MHP) in Shasta County retroactively changing the end date from June 30, 2018 to June 30, 2017; and (2) delegates signature authority to the Health and Human Services Agency Director, Donnell Ewert, to sign retroactive revenue Agreement Amendment No. 12-89397 A01, and accompanying certification documents, including retroactive, with DHCS for Medi-Cal covered specialty mental health services through the MHP, changing the contract end term to end one year early on June 30, 2017 (originally June 30, 2018), provided they otherwise comply with Administrative Policy 6-101, Shasta County Contracts Manual.

SUMMARY

N/A

DISCUSSION

On April 23, 2013, the Board of Supervisors approved an agreement with the California Department of Health Care Services (DHCS) with an original contract term of July 1, 2013 through June 30, 2018. The Health and Human Services Agency (HHSA) is returning to the Board for approval of an amendment from DHCS to change the end date of this agreement from June 30, 2018 to June 20, 2017. Many of the requirements in the Medicaid Managed Care regulations became effective and applicable on July 1, 2017. In order to avoid overlapping terms with the subsequent agreement DHCS is now retroactively amending Agreement #12-89397 to change the end date to June 30, 2017.

ALTERNATIVES

DHCS has indicated that there is no ability for counties to further modify the terms of the agreement.  The Board could choose not to approve the recommendations.  If the MHP amendment is not approved, it could result in a loss of significant amounts of realignment funding to the County and/or the state administration of the County’s mental health program.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the amendment as to form.  Risk Management and County Information Technology have reviewed and approved the amendment. This recommendation has been reviewed by the County Administrative Office.

FINANCING

Compensation payable to Shasta County by the federal Medicaid funding can be obtained over the five years through expenditure of local general funds and 1991 and 2011 mental health realignment as match.  Federal reimbursement is contingent on certified public expenditures made by Shasta County and then claimed through the Medi-Cal billing process. The agreement will allow for the continued pass-through of approximately $14.1 million in federal Medicaid funds annually to Shasta County.  Payment to Shasta County is processed as claims are made for mental health services provided by the HHSA as well as through contractors.  A cost reporting/reconciliation process takes place after the close of the fiscal year and any differences between the billed costs and the cost of providing services are paid to or recouped from Shasta County’s Mental Health Fund.  Matching funds are provided through a combination of 1991 and 2011 realignment as well as a County General Fund contribution of $266,778. There is no additional General Fund impact.