MINUTES CMSP GOVERNING BOARD Thursday, May 28, Governing Board Conference Room 1451 River Park Drive, Suite 213 Sacramento, CA 95815
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1 MINUTES CMSP GOVERNING BOARD Thursday, Governing Board Conference Room 1451 River Park Drive, Suite 213 Sacramento, CA MEMBERS PRESENT Jill Cook, Health Director, Yolo County Ann Connolly, Director, Tuolumne County Human Services Birgitta Corsello, County Administrator, Solano County Mark Lovelace, Supervisor, Humboldt County Rita Scardaci, Health Director, Sonoma Elliott Smart, Social Services Director, Plumas County Larry Spikes, County Administrative Officer, Kings County Brad Wagenknecht, Supervisor, Napa County MEMBERS ABSENT Richard Forster, Supervisor, Amador County Rick Haffey, County Executive Officer, Nevada County Mike Wilkening, Undersecretary, California Health and Human Services Agency Welcoming Remarks and Public Comments Elliott Smart, Chair, opened the meeting and asked for public comments. There were no public comments. Correspondence and Consent Calendar Mr. Smart requested a motion on the Correspondence and Consent Calendar. ACTION MSC: Approve the Correspondence and Consent Calendar for May 28, 2015 with a minor correction (delete redundant word the ) to the April 23, 2015 meeting minutes. Report on Closed Session APPROVED Votes: Aye 7 Nay 0 Cathy Salenko, CMSP General Counsel, reported that the Governing Board met in Closed Session and provided direction to the General Counsel and Governing Board staff concerning contract terms pertaining to negotiations with specified health care providers.
2 Page 2 The Board also discussed one potential Governing Board litigation matter and provided direction to the General Counsel and Governing Board staff on this matter. Report from Legislative Representative Karen Lange of Shaw, Yoder, Antwih, Inc. greeted the Governing Board. The CSAC Legislative Conference is going on currently and Paul Yoder is attending meetings there. In both the Senate and Assembly, the Appropriation Committee Suspense Files are being heard today. All bills with a fiscal impact will be given consideration today by these committees. Additionally, the Legislature s policy and budget subcommittees are in the budget zone, as both houses have adopted their subcommittee actions and the full Conference Committee should begin next week. The goal for final action is the week of June 8. The two biggest legislative issues at this time are: 1) Tension between the Administration and Democratic leadership on what the revenue picture is, with competing forecasts from the Department of Finance and the Legislative Analyst; and, 2) The $10 billion to be allocated to schools under Prop 98 and legislative priorities set by Senate Democrats associated with early childhood care and education. The fight is generally over whether to move this component of childcare under Prop 98. The California Teachers Association has not been shy in its arguments that early childhood care and education should not be funded by amounts allocated to schools under Prop 98. Another fight relates to continued dynamics over redevelopment and its impacts on certain cities, and legislation to address this matter contains a variety of additional provisions that could be beneficial to counties. Governor Brown spoke at the CSAC Legislative Conference yesterday. The Governor reminded counties that he was paying down amounts owed by the state for unfunded state mandates. Payment In Lieu of Taxes (PILT) is still in the mix and is a matter before the Legislative Conference Committee. The continuing question remains whether the State will pay for all costs in arrears or just going forward annual costs. While there is projected revenue of $14 billion, with Prop 98 drawing down most of that revenue, Prop 2 taking a portion, and the Governor approving payment of unfunded state mandates, there is very little revenue left over for other priorities. Within this context, efforts are underway to restore the 10% Medi-Cal cuts, but there s no indication the Governor will approve this.
3 Page 3 DHCS Presentation on California s Proposed Medi-Cal Waiver Hannah Katch, DHCS Assistant Deputy Director, Health Care Delivery Systems, made a presentation to the Governing Board entitled Medi-Cal 2020: Continuing on the Path to Delivery System Transformation and Sustainability. Board members asked questions of Ms. Katch and Governing Board discussion ensued. Report from Eligibility Committee Proposed CMSP Eligibility Manual Update Elliott Smart, Eligibility Committee Chair, reported that the Committee reviewed and recommended for Governing Board approval a short set of revisions to the CMSP Eligibility Manual designed to update and align the manual with certain Medi-Cal eligibility processes. The proposed changes to the manual were briefly presented. ACTION MSC: Approve the proposed changes to the CMSP Eligibility Manual recommended by the Eligibility Committee. Strategic Planning Discussion APPROVED Votes: Aye 8 0 Mr. Smart reported that the Committee engaged in a vigorous discussion of the same strategic planning topics discussed by the Planning and Benefits Committee. The Committee will present its recommendations at the Governing Board s June 25, 2015 Strategic Planning Meeting. Report from Planning and Benefits Committee Jill Cook, Planning and Benefits Committee Chair, reported that a quorum of the committee was in attendance and approved the minutes of all prior meetings. Strategic Planning Discussion Ms. Cook reported that the Committee had a robust strategic planning discussion concerning the proposed eligibility and benefit concepts. The goal of the Committee was to develop a prioritized list of recommendations for consideration by the Governing Board. A representative of the committee will present the recommendations to the Governing Board on June 25.
4 Page 4 Yolo County Participation in CMSP Kari Brownstein briefed the Governing Board on the proposed agreement with Yolo County for participation in CMSP. The agreement takes the base agreement for CMSP participation and makes a handful of changes that are unique to Yolo County. The agreement includes a meet and confer process to reconcile the final dollar amount that will be payable by Yolo County. ACTION MSC: Approve the proposed CMSP Participation Agreement with Yolo County APPROVED Votes: Aye 7 No 0 Abstain 1 (Jill Cook) Ms. Brownstein further briefed the Board on a proposed amendment to the existing Agreement with Yolo County for CMSP participation. This amendment revises the amount payable by Yolo County to the Participation Fee. ACTION MSC: Approve the proposed amendment to the existing CMSP Participation Agreement with Yolo County APPROVED Votes: Aye 7 No 0 Abstain 1 (Jill Cook) Low Income Health Program (LIHP) Transition Ms. Brownstein reported on various activities associated with the end of the Low Income Health Program, Path2Health. Federal CPE Claiming for Path2Health Ms. Brownstein reported that $14.3 million in administrative claims have been processed and a check in this amount was received in May. Another $16 million in administrative claiming is in process. Federal CPE Claiming by Non-Designated Public Hospitals for LIHP Enrollee Services Ms. Brownstein reported that some funding has been received for the hospitals and these amounts will be allocated to the facilities by June.
5 Page 5 Ms. Salenko reported that she received a marked-up contract draft from Palm Drive Hospital for participation in the program, but there are a number of issues that need further review and consideration. Ms. Salenko also reported that she has not received specified banking documents that she requested from Palm Drive s counsel regarding the hospital s bankruptcy. Supplemental Payments to Out-of-Network Hospitals for LIHP Enrollee Services Ms. Brownstein reported there was no new information to report at this time. CMSP Financial Reports CMSP Balance Sheet Ms. Brownstein presented the CMSP Balance Sheets as of March 31, The CMSP Balance Sheet shows: ITEM 4/30/15 Total CMSP Funds $188,213,180 Total Assets $229,977,092 Total Liabilities and Equity $229,977,092 Cash balances in CMSP Fund 896 $0 Cash balance in CMSP Fund 359 $0 FY Program Budget Expenditures Year-to-Date Ms. Brownstein presented a report on year-to-date actual versus budgeted Program expenditures. As of April 30, 2015 there were Program expenditures of $4,037,818. The approved Program Budget for FY is $7,732,000. FY Administrative Office Budget Expenditures Year-to-Date Ms. Brownstein presented a report on year-to-date actual versus budgeted Administrative Office expenditures. As of April 30, 2015 there were expenditures of $1,410,717. The approved budget for FY is $2,461,000.
6 Page 6 Preliminary FY CMSP Budget Ms. Brownstein presented a proposed preliminary CMSP Budget for FY that was updated from the document originally provided in the Board s agenda materials. Ms. Brownstein briefed the Board on budget assumptions and line items. Ms. Brownstein presented a proposed preliminary Administrative Office Budget for FY and briefed the Board on budget assumptions and line items. It was noted by the Board that the proposed budget does not address any additional administrative costs that would be associated with program changes approved by the Board following the Board s strategic planning session. Program Administration Advanced Medical Management (AMM) Alison Kellen, Program Manager, introduced Melanie Hodoh, AMM Account Executive. Ms. Kellen reported that primary AMM efforts are focused on provider contracting and counter-signatures by the Board. AMM is currently holding claims for non-contracting providers to solicit their participation as contracting providers. Work continues with DHCS to get the CMSP eligibility files transferred to AMM on a monthly and daily basis. Anthem Blue Cross (Anthem) Ms. Brownstein reported that Anthem is closing out the services for CMSP and the main effort is on the close out plan for completion September 30. MedImpact Chris Salmon, Information Technology Administrator reported that MedImpact s current connection to the State for receipt of CMSP eligibility files is less secure than MedImpact desires. This issue has been pending with DHCS for over a year, and MedImpact will soon be shutting down the current channel for delivery of the CMSP eligibility file. CMSP staff are working with DHCS to get the CMSP eligibility data to MedImpact in a more secure fashion in order to address their concerns. Public Comments Donnel Ewart, Shasta County Health and Human Services Agency Director, thanked the Governing Board for the input process through the Planning and Benefits Committee and Eligibility Committee for CMSP strategic planning. Mr. Ewart reported that Del Norte,
7 Page 7 Humboldt, Mendocino, Shasta, Modoc, Lassen, and Trinity have been meeting. These counties believe that the CMSP county participation fee should be waived for the next couple of years, at least. Further, these counties believe that the CMSP fund balance should be allocated to the CMSP counties. Mr. Ewart suggested that three-quarters of the fund balance be allocated to the counties. Ms. Cook thanked the CMSP staff for the good work that has been undertaken over the past several months, noting that they have been balancing competing demands of the program s transition to AMM benefit administration, strategic planning, and the entry of a new county to CMSP participation. The meeting was adjourned.
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