SACRAMENTO – Many California Counties are waiting for Medi-Cal reimbursements for State mandated Mental Health Services that go back to FY 2003-04.  One-Quarter Billion Dollars is owed to Counties, Los Angeles County topping the list with $110 million in un-reimbursed services for the Early Periodic Screening, Diagnosis and Treatment Program (EPSDT).

Assemblymember Cathleen Galgiani introduced AB308, an act to appropriate $243 million (as estimated by the Department of Finance) to provide prompt reimbursement to counties for unpaid Medi-Cal claims for services provided for the 2003-04, 2004-05, 2005-06 and current fiscal years. 
 
“It is unacceptable that the state has not paid counties for services rendered three years ago.  The State has a financial obligation and there is no excuse for making counties wait any longer,” said Galgiani. “The worst part is that it is putting some of our most vulnerable citizens at greater risk, when the original legislative purpose was to ensure the availability of services.”

The Department of Mental Health attributed the problem to accounting and technical procedure changes 3 years ago.  Furthermore the funds appropriated for those payments reverted to the General Fund and were used for other budget items.  The Department of Mental Health had $66 million identified in the 05-06 Budget to cover the oldest claims but still required enabling legislation to make the payments.  The status of the remaining $186 million has become a matter of debate between the Legislative Analyst, the Joint Legislative Budget Committee and the Departments of Finance and Mental Health.

Galgiani presented the bill for hearing before the Assembly Health Committee on Tuesday.  Mark Hendrickson, representing Merced County, and Patricia Ryan, representing all 58 County Mental Health Directors, both testified that the nonpayment by the State is having a detrimental affect on many counties abilities to provide services.  Eight other witnesses, representing Counties, Mental Health Professionals and Children’s Advocates, expressed support for the measure.

Despite early concerns of the Health Committee staff and reticence expressed by the Budget Health and Human Services Subcommittee, the measure passed the Health Committee with a final vote of 13-0 late on Tuesday.  AB 308 will go to the Appropriations Committee in the next few weeks for hearing about the fiscal implications of the bill.

“I think that all of the committee members felt that this problem has dragged on too long and that the debt to the counties must be paid,” said Galgiani.  “This bill provides a legislative vehicle to take the necessary measures to move that process forward as quickly as possible.”