House Study Bill 217 



                                       SENATE/HOUSE FILE       
                                       BY (PROPOSED DEPARTMENT OF
                                           HUMAN SERVICES BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for county and state financial responsibility
  2    for certain human services programs and treatment or support
  3    services.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1240DP 82
  6 jp/es/88

PAG LIN



  1  1                           DIVISION I
  1  2                  FINANCIAL RESPONSIBILITY FOR
  1  3                    CERTAIN MEDICAID SERVICES
  1  4    Section 1.  Section 225C.6, subsection 1, paragraph e, Code
  1  5 2007, is amended to read as follows:
  1  6    e.  Unless another governmental body sets standards for a
  1  7 service available to persons with disabilities, adopt state
  1  8 standards for that service.  The commission shall provide that
  1  9 a service provider's compliance with standards for a service
  1 10 set by a nationally recognized body shall be deemed to be in
  1 11 compliance with the state standards adopted by the commission
  1 12 for that service.  The commission shall adopt state standards
  1 13 for those residential and community=based providers of
  1 14 services to persons with mental illness or developmental
  1 15 disabilities that are not otherwise subject to licensure by
  1 16 the department of human services or department of inspections
  1 17 and appeals, including but not limited to remedial services
  1 18 and habilitation services payable under the adult
  1 19 rehabilitation option of the medical assistance program and
  1 20 other services payable from funds credited to a county mental
  1 21 health, mental retardation, and developmental disabilities
  1 22 services fund created in section 331.424A.  In addition, the
  1 23 commission shall review the licensing standards used by the
  1 24 department of human services or department of inspections and
  1 25 appeals for those facilities providing services to persons
  1 26 with mental illness or developmental disabilities.
  1 27    Sec. 2.  Section 249A.26, subsection 4, Code 2007, is
  1 28 amended to read as follows:
  1 29    4.  a.  The county of legal settlement shall pay for one
  1 30 hundred percent of the nonfederal share of the cost of
  1 31 services provided to adult persons with chronic mental illness
  1 32 implemented under the adult rehabilitation option of the state
  1 33 medical assistance plan who qualify for remedial services in
  1 34 accordance with the rules adopted for the services.  The state
  1 35 shall pay for one hundred percent of the nonfederal share of
  2  1 the cost of such services provided to such persons who have no
  2  2 legal settlement or the legal settlement is unknown so that
  2  3 the persons are deemed to be state cases.
  2  4    b.  The county of legal settlement shall pay for one
  2  5 hundred percent of the nonfederal share of the costs of
  2  6 services provided to adult persons who qualify for
  2  7 habilitation services.  The state shall pay for one hundred
  2  8 percent of the nonfederal share of the cost of habilitation
  2  9 services provided to such persons who have no legal settlement
  2 10 or the legal settlement is unknown so that the persons are
  2 11 deemed to be state cases.
  2 12    Sec. 3.  Section 249A.31, Code 2007, is amended to read as
  2 13 follows:
  2 14    249A.31  COST=BASED REIMBURSEMENT == MENTAL HEALTH AND
  2 15 DEVELOPMENTAL DISABILITIES PROVIDERS.
  2 16    All of the following shall receive cost=based reimbursement
  2 17 for one hundred percent of the reasonable costs for the
  2 18 provision of services to recipients of medical assistance:
  2 19    1.  Providers of individual case management services for
  2 20 persons with mental retardation, a developmental disability,
  2 21 or chronic mental illness shall receive cost=based
  2 22 reimbursement for one hundred percent of the reasonable costs
  2 23 for the provision of the services in accordance with standards
  2 24 adopted by the mental health, mental retardation,
  2 25 developmental disabilities, and brain injury commission
  2 26 pursuant to section 225C.6.
  2 27    2.  Providers of services to persons with chronic mental
  2 28 illness implemented under the adult rehabilitation option of
  2 29 the state medical assistance plan.
  2 30    Sec. 4.  Section 331.440A, subsection 7, paragraph b,
  2 31 subparagraph (1), Code 2007, is amended to read as follows:
  2 32    (1)  The oversight committee may make a determination that
  2 33 implementation by the department of human services of a new
  2 34 significant funding provision such as the rehabilitation
  2 35 option for persons with chronic mental illness remedial
  3  1 services or a waiver under the medical assistance program, or
  3  2 another good cause reason, justifies delay of the
  3  3 implementation of the pilot project phases as provided in
  3  4 subsection 6.  If such a determination is made, the department
  3  5 of human services and pilot project counties shall delay
  3  6 implementation of the pilot project phases until a date
  3  7 identified by the oversight committee.
  3  8    Sec. 5.  Section 249A.26A, Code 2007, is repealed.
  3  9    Sec. 6.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection
  3 10 3, shall not apply to this division of this Act.
  3 11                           DIVISION II
  3 12                     LEGAL SETTLEMENT STATUS
  3 13    Sec. 7.  Section 252.16, subsection 8, Code 2007, is
  3 14 amended to read as follows:
  3 15    8.  a.  A person receiving treatment or support services
  3 16 from any provider, whether organized for pecuniary profit or
  3 17 not or whether supported by charitable or public or private
  3 18 funds, that who provides treatment or services for mental
  3 19 retardation, developmental disabilities, mental health, brain
  3 20 injury, or substance abuse does not acquire legal settlement
  3 21 in a county unless the person continuously resides in that
  3 22 county for one year from the date of the last treatment or
  3 23 support service received by the person.
  3 24    b.  For the purposes of this section, "treatment or support
  3 25 services" means treatment or support services provided under
  3 26 the authority of a mental health professional, as defined in
  3 27 section 228.1.  A person's receipt of a prescription for a
  3 28 psychotropic drug from a mental health professional other than
  3 29 a psychiatrist does not constitute receiving treatment or
  3 30 support services under this section.
  3 31                           EXPLANATION
  3 32    This bill provides for county and state financial
  3 33 responsibility for certain human services programs and
  3 34 treatment or support services.  The bill is organized into
  3 35 divisions.
  4  1    FINANCIAL RESPONSIBILITY FOR CERTAIN MEDICAID SERVICES.
  4  2 This division addresses state and county financial
  4  3 responsibility for certain medical assistance (Medicaid)
  4  4 program services provided to adults.  Under current law, the
  4  5 county of legal settlement is responsible for the nonfederal
  4  6 share of the cost of services provided to persons with chronic
  4  7 mental illness who receive services under the adult
  4  8 rehabilitation option of the state plan for the services.  The
  4  9 state is responsible for the nonfederal share for state cases.
  4 10 The department of human services is in the process of
  4 11 eliminating the adult rehabilitation option under Medicaid and
  4 12 is instead implementing a new approach.  The new approach is
  4 13 to offer remedial services and habilitation services as part
  4 14 of the regular Medicaid benefit package.
  4 15    The bill eliminates Code references to the rehabilitation
  4 16 option and the limitation of the option's application to
  4 17 persons with chronic mental illness.  Code section 249A.26,
  4 18 relating to state and county participation in funding for
  4 19 services to persons with disabilities, is amended to replace
  4 20 the references to the rehabilitation option in the
  4 21 requirements for county of legal settlement and state
  4 22 financial responsibility with references to remedial services
  4 23 and habilitation services.
  4 24    Conforming amendments are made in Code section 225C.6,
  4 25 relating to the responsibility of the mental health, mental
  4 26 retardation, developmental disabilities, and brain injury
  4 27 commission to adopt rules for service providers; and Code
  4 28 section 331.440A, relating to grounds which may be used for
  4 29 delaying implementation of an adult mental health, mental
  4 30 retardation, and developmental disabilities services funding
  4 31 decategorization pilot project.
  4 32    Code section 249.26A, which relates to the same
  4 33 requirements addressed in the bill in Code section 249A.26, is
  4 34 repealed.
  4 35    Code section 249A.31, relating to providers who are
  5  1 reimbursed for 100 percent of the reasonable costs for the
  5  2 provision of services, is amended to eliminate the requirement
  5  3 for cost=based reimbursement for adult rehabilitation option
  5  4 services and to reorganize the section.
  5  5    The division may include a state mandate as defined in Code
  5  6 section 25B.3.  The division makes inapplicable Code section
  5  7 25B.2, subsection 3, which would relieve a political
  5  8 subdivision from complying with a state mandate if funding for
  5  9 the cost of the state mandate is not provided or specified.
  5 10 Therefore, political subdivision are required to comply with
  5 11 any state mandate included in the division.
  5 12    LEGAL SETTLEMENT STATUS.  This division amends Code section
  5 13 252.16, relating to establishing a county of legal settlement.
  5 14 Current law provides that a person receiving treatment or
  5 15 support services from any provider that provides treatment or
  5 16 services for mental retardation, developmental disabilities,
  5 17 mental health, brain injury, or substance abuse does not
  5 18 acquire legal settlement in a county unless the person
  5 19 continuously resides in that county for one year from the date
  5 20 of the last treatment or support service received by the
  5 21 person.
  5 22    The bill defines the term "treatment or support services"
  5 23 as used in Code section 252.16 to mean treatment or support
  5 24 services provided by a mental health professional, as defined
  5 25 in Code section 228.1.  Code section 228.1 defines the term
  5 26 "mental health professional" to mean an individual who has all
  5 27 of the following qualifications:  the individual holds at
  5 28 least a master's degree in a mental health field including but
  5 29 not limited to psychology, counseling and guidance, nursing,
  5 30 and social work, or the individual is a physician and surgeon
  5 31 or an osteopathic physician and surgeon; the individual holds
  5 32 a current Iowa license if practicing in a field covered by an
  5 33 Iowa licensure law; and the individual has at least two years
  5 34 of post=degree clinical experience, supervised by another
  5 35 mental health professional, in assessing mental health needs
  6  1 and problems and in providing appropriate mental health
  6  2 services.
  6  3    In addition, the bill provides a person's receipt of a
  6  4 prescription for a psychotropic drug from a mental health
  6  5 professional other than a psychiatrist does not constitute
  6  6 receiving treatment or support services.
  6  7 LSB 1240DP 82
  6  8 jp:sc/es/88.1