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Home My WebLink AboutSTATE Department of Health Care Services-Intergovernmental Transfer Certification for MCIP FY 2021-22_A-22-233.pdf COjl County of Fresno Hall of Records,Room 301 2281 Tulare Street Fresno,California Board of Supervisors 93721-2198 O i856 0 Telephone:(559)600-3529 FRE`'� Minute Order Toll Free: 1-800-742-1011 www.co.fresno.ca.us June 7, 2022 Present: 5- Vice Chairman Sal Quintero, Supervisor Steve Brandau, Supervisor Nathan Magsig, Supervisor Buddy Mendes, and Chairman Brian Pacheco Agenda No. 60. Public Health File ID:22-0476 Re: Approve and authorize the Chairman to execute a retroactive Intergovernmental Transfer Certification with the California Department of Health Care Services for voluntary contribution of County non-Federal funds to cover the non-Federal share of Medicaid eligible expenditures through the Medi-Cal County Inmate Program for State Fiscal Year 2021-22, effective July 1,2021 through June 30,2022, estimated total$295,762 APPROVED AS RECOMMENDED Ayes: 5- Quintero, Brandau, Magsig, Mendes, and Pacheco Agreement No. 22-233 County of Fresno Page 60 co Board Agenda Item 60 O 1856 O � FrzES� DATE: June 7, 2022 TO: Board of Supervisors SUBMITTED BY: David Luchini, RN, PHN, Director, Department of Public Health Margaret Mims, Sheriff-Coroner-Public Administrator SUBJECT: Retroactive Intergovernmental Certification RECOMMENDED ACTION(S): Approve and authorize the Chairman to execute a retroactive Intergovernmental Transfer Certification with the California Department of Health Care Services for voluntary contribution of County non-Federal funds to cover the non-Federal share of Medicaid eligible expenditures through the Medi-Cal County Inmate Program for State Fiscal Year 2021-22, effective July 1, 2021 through June 30, 2022, estimated total$295,762. Approval of the recommended action will certify the County's use of non-Federal funds to reimburse for the administration and non-Federal share of eligible inpatient hospitalization cost through the California Department of Health Care Services (DHCS)administered Medi-Cal County Inmate Program (MCIP). DHCS, implemented the Intergovernmental Transfer(IGT) Certification process as a condition of participating in the program as of FY 2019-20. The IGT Certification certifies that County funds used to reimburse DHCS for the administration and non-Federal share of MCIP eligible services qualify for Federal Financial Participation (FFP), pursuant to 42 Code of Federal Regulations (CFR) part 433, subpart B, and are not derived from impermissible sources. This item is countywide. ALTERNATIVE ACTION(S): Should your Board not approve the recommended action, DHCS's Policy and Procedure Letter(PPL) No. 20-016 states that it will result in the immediate revocation of the current MCIP agreements and termination of the County's participation in the MCIP. This would result in the DHCS no longer claiming for FFP under Title XIX of the Social Security Act and therefore no longer making inpatient medical service provider payments for County adult inmates and juvenile wards. Cost for inpatient medical services for this population would revert to 100% County responsibility retroactively to July 1, 2021. Year to date cost liability is unknown at this time as invoices for DHCS non-federal share of cost related to FY 2021-22 are pending. RETROACTIVE AGREEMENT: The recommended IGT Certification is retroactive to July 1, 2021 and was not presented to your Board earlier due to the delay in receiving the Certification from DHCS, which was received by the Department on April 15, 2022. FISCAL IMPACT: There is no increase in Net County Cost associated with the recommended action. DHCS will continue to reimburse medical providers for eligible inmates' inpatient hospital service cost and invoice the County for County of Fresno Page 1 File Number:22-0476 File Number:22-0476 the Non-Federal Share estimated to be$295,762 in FY 2021-22. Non-Federal share of cost invoice payments for FY 2019-20 and FY 2020-21 are still pending and the Department is waiting for updated invoices and/or direction from DHCS based on the established invoice reconciliation process. The reconciliation process allows the County to review the Non-Federal share of cost to assure cost is related to county inmates only. DHCS has assured the Department the reconciliation process will continue and the IGT Certification will not impact our ability to reconcile claims. Sufficient appropriations and estimated revenues are included in the Department's Org 5620 FY 2021-22 Adopted Budget, to make invoice payments. DISCUSSION: Assembly Bill 1628 (Chapter 729, Statutes of 2010) and Assembly Bill 396 (Chapter 394, Statues of 2011) authorized DHCS and counties to claim FFP for medical and psychiatric inpatient hospital services provided to County Medi-Cal eligible inmates housed in county correctional facilities. On April 3, 2018, the Board approved Agreement Nos. 18-169 and 18-170 with California Forensic Medical Group, Inc., (now Wellpath), which provide for participation in MCIP for inpatient hospitalization services. On October 8, 2019, your Board executed the FY 2019-20 MCIP service participation and administrative Agreement No. 19-524. For FY 2020-21, DHCS adjusted the agreement processes and created a three-year administrative agreement and a 12-month service agreement that will automatically renew for unlimited 12-month periods as long as an administrative agreement is in place. The agreements were executed by your Board on July 7, 2020 (Agreement Nos. 20-262 and 20-263). The IGT certification has been approved by your Board for the last two years, FY 2019-20 and FY 2020-21 respectively. Per DHCS's PPL No. 20-016, the certification will be needed on a yearly basis. The MCIP Participation Agreement allows providers direct submittal of service claims to DHCS MCIP Division and sets forth the terms that the County must abide by in order to participate in the MCIP. Terms include the County responsibility to reimburse DHCS based on invoices received for the non-Federal share of DHCS claimed Title XIX eligible services. DHCS retains responsibility to make direct medical provider payments at applicable Medi-Cal rates and therefore retain all Title XIX FFP received. The administrative services agreement provides for DHCS to charge the County an annual administrative service fee for the County's share of DHCS administrative costs, this cost is shared between all MCIP participating counties. The agreements allow DHCS to draw Federal funds for allowable services, which in turn allows the County to realize a savings for costs that would have otherwise been a 100% county liability. DHCS has continued to communicate that the yearly MCIP IGT Certification will not change the current contractual reimbursement process to an advancement of funds process. The IGT Certification serves to ensure the County's commitment to reimburse DHCS with funds from the County's General Fund or from any other funds allowed under Federal law and regulation, including but not limited to section 1903(w)of the Social Security Act and 42 CFR, Part 433, Subpart B. In late 2020, the Department, with County Counsel input, communicated with DHCS to attempt to capture language in the certification that assured the County a continued reimbursement relationship for the MCIP contracts, however DHCS would not accept any language amendments to the certification. The Department will return to the Board should the reimbursement process change to an actual IGT process, requiring an advance on estimated non-Federal share of cost for eligible MCIP services. The County will be required to submit an IGT Certification annually to DHCS by June 30th of each State fiscal year to be eligible for continued participation in MCIP. REFERENCE MATERIAL: BAI #50, May 25, 2021 BAI #69, December 15, 2020 County of Fresno page 2 File Number.22-0476 File Number. 22-0476 BAI #40, July 7, 2020 BAI #44, October 8, 2019 BAI #8.1, April 3, 2018 ATTACHMENTS INCLUDED AND/OR ON FILE: On file with Clerk-Certification CAO ANALYST: Ronald Alexander County of Fresno Page 3 File Number:22-0476 Agreement No. 22-233 MEDI-CAL COUNTYINMATE PROGRAM CERTIFICATION OF VOLUNTARY CONTRIBUTIONS TO NON-FEDERAL SHARE OF MEDICAID EXPENDITURES On behalf of the County of Fresno (the Governmental Funding Entity), I hereby certify that the intergovernmental transfer amount specified herein represents a voluntary contribution by the Governmental Funding Entity to the non-federal share of Medicaid expenditures for purposes of all federal laws, including, but not limited to Section 10201(c)(6)of the Patient Protection and Affordable Care Act (Public Law No. 111-148). The funds transferred qualify for Federal Financial Participation (FFP) pursuant to 42 C.F.R. part 433, subpart B, and are not derived from impermissible sources. Govern- mental Funding Entity shall indemnify DHCS for any deferral or disallowance of FFP should funds transferred pursuant to this certification be deemed ineligible for FFP. This voluntary contribution in the amount of$ 295,762 is intended to fulfill the Governmental Funding Entity's responsibility for the non-federal share of certain payments under the Medi-Cal County Inmate Program (MCIP) implemented in accordance with California Welfare and Institutions Code (WIC) Section 14053.7 and 14053.8. These funds are provided solely to enable DHCS to obtain FFP for MCIP payments as permitted by federal law. In the event DHCS is unable to obtain FFP for these MCIP payments, or the full MCIP payments cannot otherwise be made to and retained by hos- pital providers of acute inpatient services under the MCIP, and therefore all or a portion of the transferred amount cannot be used as intended, DHCS will notify the Govern- mental Funding Entity and return the applicable portion of the unused intergovernmental transfer amount. Amounts due to or owed by the Governmental Funding Entity may be offset against future transfers related to MCIP as determined by DHCS. The govern- mental funding entity may not receive and retain any of the Medicaid payments funded by the IGT funds. All records of public funds constituting the non-federal share are subject to review and audit by DHCS.The Governmental Funding Entity understands that DHCS must deny payment under WIC sections14053.7, 14053.8, and Penal Code 5072 if it is determined that the IGT, the certification, or both is not adequately supported for purposes of claim- ing FFP. I am authorized to sign this certification of voluntary contributions on behalf of the Gov- ernmental Funding Entity. I understand that knowingly filing a false or fraudulent state- ment in support of a claim may violate the Federal False Claim Act or other applicable statue, and be punishable thereunder. L OL Brian Pacneco, Chairman of the Board of Supervisors of the County of Fresno Attest: Bernice E. Seidel, Clerk of the Board of Supervisors, County of Fresno, State of California By: G0 D