Bill Text: CA AB2051 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Medi-Cal: providers: affiliate primary care clinics.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2014-09-16 - Chaptered by Secretary of State - Chapter 356, Statutes of 2014. [AB2051 Detail]

Download: California-2013-AB2051-Amended.html

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BILL NUMBER: AB 2051	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 11, 2014
	AMENDED IN SENATE  MAY 22, 2014
	AMENDED IN ASSEMBLY  APRIL 29, 2014

INTRODUCED BY   Assembly Members Gonzalez and Bocanegra
   (Coauthor: Assembly Member V. Manuel Pérez)

                        FEBRUARY 20, 2014

   An act to  amend Section 24005 of, and to  add Section
14043.17 to  ,  the Welfare and Institutions Code, relating
to Medi-Cal.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2051, as amended, Gonzalez. Medi-Cal: providers: affiliate
primary care clinics.
   Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Care Services, 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 also establishes the
Family Planning, Access, Care, and Treatment (Family PACT) Program to
provide comprehensive clinical family planning services to
individuals who meet specified income requirements. Existing law
provides for a schedule of benefits under the Medi-Cal program,
including services provided under the Family PACT Program. 
   Existing law authorizes the department to adopt regulations for
certification of each applicant and each provider in the Medi-Cal
program. Existing law requires certain applicants or providers, as
defined, to submit a complete application package for enrollment,
continuing enrollment, or enrollment at a new location or a change in
location. Existing law generally requires the department to give
written notice regarding the status of an application to an applicant
or provider within a prescribed period of time, as specified.
   This bill would require the department,  except as specified,
 within  15 days after   30 calendar days
of  receiving an application for enrollment as a Medi-Cal
provider from an applicant that is an affiliate primary care clinic,
to provide specified written notice  of the status of the
application, or to approve the application effective on the date the
affiliate primary care clinic license was issued, as specified. The
bill would also require the department, within 15 days after the
approval of an application, to approve the provider's requested
participation in specified public health programs   to
the applicant informing the applicant that its Medi-Cal enrollment is
approved. The bill would require the department, if an affiliate
primary care clinic's Medi-Cal enrollment is not approved, to
collaborate with the State Department of Public Health to ensure that
the applicant receives written notification informing the applicant
of any deficiencies and providing the applicant with an opportunity
to cure the deficiencies within 30 days of the date of the written
notice, as specified. The bill would impose similar requirements upon
the department with respect to an application for enrollment into
the Family PACT Program. The bill would require the department to
concurrently review and approve an applicant's Family PACT Program
application and Medi-Cal enrollment, as specified, if an affiliate
primary care clinic files its Family PACT Program application either
before or on the same day that it files its affiliate primary car
  e clinic licensure application with the State Department
of Public   Health. The bill would also make the effective
date of enrollment into both programs retroactive to the date
Medi-Cal certification was approved by the State Department of Public
Health  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14043.17 is added to the Welfare and
Institutions Code, to read:
   14043.17.  (a) Notwithstanding any other law,  and except as
provided in subdivision (b),  within  15  
30 calendar  days of receiving an application for enrollment as
a Medi-Cal provider from an affiliate primary care clinic that is
licensed pursuant to Section 1218.1 of the Health and Safety Code and
that has been certified for enrollment by the State Department of
Public Health, the department shall  do either of the
following:   provide written notice to the applicant
informing the applicant that its Medi-Cal enrollment is approved.
 
   (1) Provide written notice to the applicant that one of the
following applies:  
   (A) The applicant is being granted provisional provider status for
a period of 12 months, effective from the date on the notice.
 
   (B) The application package is incomplete. The notice shall
identify additional information or documentation that is needed to
complete the application package.  
   (C) The application package is denied for any of the following
reasons: 
   (i) Pursuant to Section 14043.2 or 14043.36.  
   (ii) For lack of a primary care clinic license.  

   (iii) The period of time during which an applicant or provider has
been barred from reapplying has not passed.  
   (iv) For other stated reasons authorized by law. 

   (v) For failing to submit fingerprints as required by federal
Medicaid regulations.  
   (vi) For failing to pay an application fee as required by federal
Medicaid regulations.  
   (2) Approve the application effective on the date the affiliate
primary care clinic license was issued by the State Department of
Public Health.  
   (b) On the 16th day after receiving the application, if action is
not taken pursuant to paragraph (1) or (2) of subdivision (a), then
the application is deemed approved and that approval is effective on
the date the affiliate primary care clinic license was issued by the
State Department of Public Health.  
   (c) Notwithstanding any other law, within 15 days of the approval
of an application pursuant to subdivision (a) or (b), the department
shall approve the provider's requested participation in any of the
programs described in Section 1222 of the Health and Safety Code. On
the 16th day after approving the application, if action is not taken,
the provider's requested participation in any of those programs is
deemed approved.  
   (b) If an affiliate primary care clinic's Medi-Cal enrollment is
not approved, the department shall collaborate with the State
Department of Public Health to ensure that the applicant receives
written notification informing the applicant of any deficiencies and
providing the applicant with an opportunity to cure the deficiencies
within 30 days of the date of the written notice. The department
shall have 30 days from the receipt of information from the applicant
under this subdivision to approve or deny the Medi-Cal enrollment.
 
   (c) The department shall enroll the affiliate primary care clinic
retroactive to the date of certification. 
   (d) This section shall not be construed to limit the department's
authority pursuant to Section 14043.37, 14043.4, or 14043.7 to
conduct background checks, preenrollment inspections, or unannounced
visits.
   SEC.   2.    Section 24005 of the  
Welfare and Institutions Code   is amended to read: 
   24005.  (a) This section shall apply to the Family Planning  ,
 Access  ,  Care  ,  and Treatment 
Waiver program   Program  identified in subdivision
(aa) of Section 14132 and this program.
   (b) Only licensed medical personnel with family planning skills,
knowledge, and competency may provide the full range of family
planning medical services covered in this program.
   (c) Medi-Cal enrolled providers, as determined by the department,
shall be eligible to provide family planning services under the
program when these services are within their scope of practice and
licensure. Those clinical providers electing to participate in the
program and approved by the department shall provide the full scope
of family planning education, counseling, and medical services
specified for the program, either directly or by referral, consistent
with standards of care issued by the department.
   (d) The department shall require providers to enter into clinical
agreements with the department to ensure compliance with standards
and requirements to maintain the fiscal integrity of the program.
Provider applicants, providers, and persons with an ownership or
control interest, as defined in federal medicaid regulations, shall
be required to submit to the department their social security numbers
to the full extent allowed under federal law. All state and federal
statutes and regulations pertaining to the audit or examination of
Medi-Cal providers shall apply to this program.
   (e) Clinical provider agreements shall be signed by the provider
under penalty of perjury. The department may screen applicants at the
initial application and at any reapplication pursuant to
requirements developed by the department to determine provider
suitability for the program.
   (f) The department may complete a background check on clinical
provider applicants for the purpose of verifying the accuracy of
information provided to the department for purposes of enrolling in
the program and in order to prevent fraud and abuse. The background
check may include, but not be limited to, unannounced onsite
inspection prior to enrollment, review of business records, and data
searches. If discrepancies are found to exist during the
preenrollment period, the department may conduct additional
inspections prior to enrollment. Failure to remediate significant
discrepancies as prescribed by the director may result in denial of
the application for enrollment. Providers that do not provide
services consistent with the standards of care or that do not comply
with the department's rules related to the fiscal integrity of the
program may be disenrolled as a provider from the program at the sole
discretion of the department.
   (g) The department shall not enroll any applicant who, within the
previous 10 years:
   (1) Has been convicted of any felony or misdemeanor that involves
fraud or abuse in any government program, that relates to neglect or
abuse of a patient in connection with the delivery of a health care
item or service, or that is in connection with the interference with,
or obstruction of, any investigation into health care related fraud
or abuse.
   (2) Has been found liable for fraud or abuse in any civil
proceeding, or that has entered into a settlement in lieu of
conviction for fraud or abuse in any government program.
   (h) In addition, the department may deny enrollment to any
applicant that, at the time of application, is under investigation by
the department or any local, state, or federal government law
enforcement agency for fraud or abuse. The department shall not deny
enrollment to an otherwise qualified applicant whose felony or
misdemeanor charges did not result in a conviction solely on the
basis of the prior charges. If it is discovered that a provider is
under investigation by the department or any local, state, or federal
government law enforcement agency for fraud or abuse, that provider
shall be subject to immediate disenrollment from the program.
   (i) (1) The program shall disenroll as a program provider any
individual who, or any entity that, has a license, certificate, or
other approval to provide health care, which is revoked or suspended
by a federal, California, or other state's licensing, certification,
or other approval authority, has otherwise lost that license,
certificate, or approval, or has surrendered that license,
certificate, or approval while a disciplinary hearing on the license,
certificate, or approval was pending. The disenrollment shall be
effective on the date the license, certificate, or approval is
revoked, lost, or surrendered.
   (2) A provider shall be subject to disenrollment if the provider
submits claims for payment for the services, goods, supplies, or
merchandise provided, directly or indirectly, to a program
beneficiary, by an individual or entity that has been previously
suspended, excluded, or otherwise made ineligible to receive,
directly or indirectly, reimbursement from the program or from the
Medi-Cal program and the individual has previously been listed on
either the Suspended and Ineligible Provider List, which is published
by the department, to identify suspended and otherwise ineligible
providers or any list published by the federal Office of the
Inspector General regarding the suspension or exclusion of
individuals or entities from the federal Medicare and medicaid
programs, to identify suspended, excluded, or otherwise ineligible
providers.
   (3) The department shall deactivate, immediately and without prior
notice, the provider numbers used by a provider to obtain
reimbursement from the program when warrants or documents mailed to a
provider's mailing address, its pay to address, or its service
address, if any, are returned by the United States Postal Service as
not deliverable or when a provider has not submitted a claim for
reimbursement from the program for one year. Prior to taking this
action, the department shall use due diligence in attempting to
contact the provider at its last known telephone number and to
ascertain if the return by the United States Postal Service is by
mistake and shall use due diligence in attempting to contact the
provider by telephone or in writing to ascertain whether the provider
wishes to continue to participate in the Medi-Cal program. If
deactivation pursuant to this section occurs, the provider shall meet
the requirements for reapplication as specified in regulation.
   (4) For purposes of this subdivision:
   (A) "Mailing address" means the address that the provider has
identified to the department in its application for enrollment as the
address at which it wishes to receive general program
correspondence.
   (B) "Pay to address" means the address that the provider has
identified to the department in its application for enrollment as the
address at which it wishes to receive warrants.
   (C) "Service address" means the address that the provider has
identified to the department in its application for enrollment as the
address at which the provider will provide services to program
beneficiaries.
   (j) Subject to Article 4 (commencing with Section 19130) of
Chapter 5 of  Part 2 of  Division 5 of Title 2 of the
Government Code, the department may enter into contracts to secure
consultant services or information technology including, but not
limited to, software, data, or analytical techniques or methodologies
for the purpose of fraud or abuse detection and prevention.
Contracts under this section shall be exempt from the Public Contract
Code.
   (k) Enrolled providers shall attend specific orientation approved
by the department in comprehensive family planning services. Enrolled
providers who insert IUDs or contraceptive implants shall have
received prior clinical training specific to these procedures.
   (l) Upon receipt of reliable evidence that would be admissible
under the administrative adjudication provisions of Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, of fraud or willful misrepresentation by a
provider under the program or commencement of a suspension under
Section 14123, the department may do any of the following:
   (1) Collect any State-Only Family Planning program or Family
Planning  ,  Access  ,  Care  ,  and
Treatment  Waiver program   Program 
overpayment identified through an audit or examination, or any
portion thereof from any provider. Notwithstanding Section 100171 of
the Health and Safety Code, a provider may appeal the collection of
overpayments under this section pursuant to procedures established in
Article 5.3 (commencing with Section 14170) of  Chapter 7 of
 Part 3 of Division 9. Overpayments collected under this section
shall not be returned to the provider during the pendency of any
appeal and may be offset to satisfy audit or appeal findings, if the
findings are against the provider. Overpayments shall be returned to
a provider with interest if findings are in favor of the provider.
   (2) Withhold payment for any goods or services, or any portion
thereof, from any State-Only Family Planning program or Family
Planning Access Care and Treatment  Waiver program 
 Program  provider. The department shall notify the provider
within five days of any withholding of payment under this section.
The notice shall do all of the following:
   (A) State that payments are being withheld in accordance with this
paragraph and that the withholding is for a temporary period and
will not continue after it is determined that the evidence of fraud
or willful misrepresentation is insufficient or when legal
proceedings relating to the alleged fraud or willful
misrepresentation are completed.
   (B) Cite the circumstances under which the withholding of the
payments will be terminated.
   (C) Specify, when appropriate, the type or types of claimed
payments being withheld.
   (D) Inform the provider of the right to submit written evidence
that is evidence that would be admissible under the administrative
adjudication provisions of Chapter 5 (commencing with Section 11500)
of Part 1 of Division 3 of Title 2 of the Government Code, for
consideration by the department.
   (3) Notwithstanding Section 100171 of the Health and Safety Code,
a provider may appeal a withholding of payment under this section
pursuant to Section 14043.65. Payments withheld under this section
shall not be returned to the provider during the pendency of any
appeal and may be offset to satisfy audit or appeal findings.
   (m) As used in this section:
   (1) "Abuse" means either of the following:
   (A) Practices that are inconsistent with sound fiscal or business
practices and result in unnecessary cost to the medicaid program, the
Medicare program, the Medi-Cal program, including the Family
Planning  ,  Access  ,  Care  ,  and
Treatment  Waiver program,   Program, 
identified in subdivision (aa) of Section 14132, another state's
medicaid program, or the State-Only Family Planning program, or other
health care programs operated, or financed in whole or in part, by
the federal government or any state or local agency in this state or
any other state.
   (B) Practices that are inconsistent with sound medical practices
and result in reimbursement, by any of the programs referred to in
subparagraph (A) or other health care programs operated, or financed
in whole or in part, by the federal government or any state or local
agency in this state or any other state, for services that are
unnecessary or for substandard items or services that fail to meet
professionally recognized standards for health care.
   (2) "Fraud" means an intentional deception or misrepresentation
made by a person with the knowledge that the deception could result
in some unauthorized benefit to himself or herself or some other
person. It includes any act that constitutes fraud under applicable
federal or state law.
   (3) "Provider" means any individual, partnership, group,
association, corporation, institution, or entity, and the officers,
directors, owners, managing employees, or agents of any partnership,
group, association, corporation, institution, or entity, that
provides services, goods, supplies, or merchandise, directly or
indirectly, to a beneficiary and that has been enrolled in the
program.
   (4) "Convicted" means any of the following:
   (A) A judgment of conviction has been entered against an
individual or entity by a federal, state, or local court, regardless
of whether there is a post-trial motion or an appeal pending or the
judgment of conviction or other record relating to the criminal
conduct has been expunged or otherwise removed.
   (B) A federal, state, or local court has made a finding of guilt
against an individual or entity.
   (C) A federal, state, or local court has accepted a plea of guilty
or nolo contendere by an individual or entity.
   (D) An individual or entity has entered into participation in a
first offender, deferred adjudication, or other program or
arrangement where judgment of conviction has been withheld.
   (5) "Professionally recognized standards of health care" means
statewide or national standards of care, whether in writing or not,
that professional peers of the individual or entity whose provision
of care is an issue, recognize as applying to those peers practicing
or providing care within a state. When the United States Department
of Health and Human Services has declared a treatment modality not to
be safe and effective, practitioners that employ that treatment
modality shall be deemed not to meet professionally recognized
standards of health care. This definition shall not be construed to
mean that all other treatments meet professionally recognized
standards of care.
   (6) "Unnecessary or substandard items or services" means those
that are either of the following:
   (A) Substantially in excess of the provider's usual charges or
costs for the items or services.
   (B) Furnished, or caused to be furnished, to patients, whether or
not covered by Medicare, medicaid, or any of the state health care
programs to which the definitions of applicant and provider apply,
and which are substantially in excess of the patient's needs, or of a
quality that fails to meet professionally recognized standards of
health care. The department's determination that the items or
services furnished were excessive or of unacceptable quality shall be
made on the basis of information, including sanction reports, from
the following sources:
   (i) The professional review organization for the area served by
the individual or entity.
   (ii) State or local licensing or certification authorities.
   (iii) Fiscal agents or contractors, or private insurance
companies.
   (iv) State or local professional societies.
   (v) Any other sources deemed appropriate by the department.
   (7) "Enrolled or enrollment in the program" means authorized under
any and all processes by the department or its agents or contractors
to receive, directly or indirectly, reimbursement for the provision
of services, goods, supplies, or merchandise to a program
beneficiary.
   (n) In lieu of, or in addition to, the imposition of any other
sanctions available, including the imposition of a civil penalty
under Sections 14123.2 or 14171.6, the program may impose on
providers any or all of the penalties pursuant to Section 14123.25,
in accordance with the provisions of that section. In addition,
program providers shall be subject to the penalties contained in
Section 14107.
   (o) (1) Notwithstanding any other provision of law, every primary
supplier of pharmaceuticals, medical equipment, or supplies shall
maintain accounting records to demonstrate the manufacture, assembly,
purchase, or acquisition and subsequent sale, of any
pharmaceuticals, medical equipment, or supplies, to providers.
Accounting records shall include, but not be limited to, inventory
records, general ledgers, financial statements, purchase and sales
journals, and invoices, prescription records, bills of lading, and
delivery records.
   (2) For purposes of this subdivision, the term "primary supplier"
means any manufacturer, principal labeler, assembler, wholesaler, or
retailer.
   (3) Accounting records maintained pursuant to paragraph (1) shall
be subject to audit or examination by the department or its agents.
The audit or examination may include, but is not limited to,
verification of what was claimed by the provider. These accounting
records shall be maintained for three years from the date of sale or
the date of service.
   (p) Each provider of health care services rendered to any program
beneficiary shall keep and maintain records of each service rendered,
the beneficiary to whom rendered, the date, and such additional
information as the department may by regulation require. Records
required to be kept and maintained pursuant to this subdivision shall
be retained by the provider for a period of three years from the
date the service was rendered.
   (q) A program provider applicant or a program provider shall
furnish information or copies of records and documentation requested
by the department. Failure to comply with the department's request
shall be grounds for denial of the application or automatic
disenrollment of the provider.
   (r) A program provider may assign signature authority for
transmission of claims to a billing agent subject to Sections 14040,
14040.1, and 14040.5.
   (s) Moneys payable or rights existing under this division shall be
subject to any claim, lien, or offset of the State of California,
and any claim of the United States of America made pursuant to
federal statute, but shall not otherwise be subject to enforcement of
a money judgment or other legal process, and no transfer or
assignment, at law or in equity, of any right of a provider of health
care to any payment shall be enforceable against the state, a fiscal
intermediary, or carrier. 
   (t) (1) Notwithstanding any other law, and only with respect to a
Medi-Cal provider that is also an affiliate primary care clinic
licensed under Section 1218.1 of the Health and Safety Code, the
department shall, within 30 calendar days of receiving a complete
application for enrollment into the Family PACT Program, do one of
the following:  
   (A) Approve the provider's Family PACT Program application,
provided the applicant meets the Family PACT Program provider
eligibility requirements set forth in this section.  
   (B) Notify the applicant in writing of any deficiencies in the
Family PACT Program enrollment application. The applicant shall have
30 days from the date of written notice to correct any cited
deficiencies. Upon receipt of all requested corrections, the
department shall approve the application within 30 calendar days.
 
   (2) If an affiliate primary care clinic files its Family PACT
Program application either before or on the same day that it files
its affiliate primary care clinic licensure application with the
State Department of Public Health, the department shall concurrently
review and approve the applicant's Family PACT Program application
and Medi-Cal enrollment in accordance with this subdivision and
Section 14043.17. The effective date of enrollment into both programs
shall be retroactive to the date Medi-Cal certification was approved
by the State Department of Public Health.