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		<ns0:Id>20250AB__022097AMD</ns0:Id>
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				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-01-08</ns0:ActionDate>
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				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-06-16</ns0:ActionDate>
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				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-07-08</ns0:ActionDate>
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			<ns0:SessionYear>2025</ns0:SessionYear>
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Jackson</ns0:AuthorText>
		<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Senator Menjivar)</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Jackson</ns0:Name>
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			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Menjivar</ns0:Name>
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		<ns0:Title> An act to amend Section 14132.25 of the Welfare and Institutions Code, relating to Medi-Cal. </ns0:Title>
		<ns0:RelatingClause>Medi-Cal</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Medi-Cal: subacute care services. </ns0:Subject>
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			<html:p>Existing law establishes 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 requires the department to establish a subacute care program in health facilities, as specified, to be available to patients in health facilities who meet subacute care criteria. Existing law requires that medical necessity for pediatric subacute care be substantiated by specified conditions. Existing regulations require a treatment authorization request for each admission to a subacute unit.</html:p>
			<html:p>This bill would require a provider seeking authorization for pediatric subacute or adult subacute care services pursuant to these provisions to submit with a
			 treatment authorization request, including an electronic treatment authorization request, a specified form when requesting authorization for subacute care services. The bill would prohibit a Medi-Cal managed care plan from developing or using its own criteria to substantiate medical necessity for pediatric subacute or adult subacute care services with a condition or standard not enumerated in those forms. The bill would prohibit a Medi-Cal managed care plan from requiring a subsequent treatment authorization request upon a patient’s return from a bed hold for acute hospitalization. The bill would authorize the department to impose sanctions on Medi-Cal managed care plans for violations of these provisions, as specified.</html:p>
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	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_59FBBD81-ABC9-4A50-AAD8-3E51D4F8605B">
			<ns0:Num>SECTION 1.</ns0:Num>
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				Section 14132.25 of the 
				<ns0:DocName>Welfare and Institutions Code</ns0:DocName>
				 is amended to read:
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					<ns0:Num>14132.25.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								On or before July 1, 1983, the State Department of Health Care Services shall establish a subacute care program in health facilities to more effectively use the limited Medi-Cal dollars available while at the same time ensuring needed services for these patients. The subacute care program shall be available to patients in health facilities who meet subacute care criteria. Subacute care may be provided by any facility designated by the director as meeting the subacute care criteria that has an approved provider participation agreement with the department.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								The department shall develop a rate of
						reimbursement for this subacute care program. Reimbursement rates shall be determined in accordance with methodology developed by the department, specified in regulation, and may include the following:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								All-inclusive per diem rates.
							</html:p>
							<html:p>
								(2)
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								Individual patient-specific rates according to the needs of the individual subacute care patient.
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							<html:p>
								(3)
								<html:span class="EnSpace"/>
								Other rates subject to negotiation with the health facility.
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							<html:p>
								(c)
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								Reimbursement at subacute care rates, as specified in subdivision (b), shall only be implemented if funds are available for this purpose pursuant to the annual Budget Act.
							</html:p>
							<html:p>
								(d)
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								The department may
						negotiate and execute an agreement with any health facility that meets the standards for providing subacute care. An agreement may be negotiated or established between the health facility and the department for subacute care based on individual patient assessment. The department shall establish level of care criteria and appropriate utilization controls for patients eligible for the subacute care program.
							</html:p>
							<html:p>
								(e)
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								For the purposes of this section, pediatric subacute services are the health care services needed by a person under 21 years of age who uses a medical technology that compensates for the loss of a vital bodily function.
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							<html:p>
								(f)
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								Medical necessity for pediatric subacute care services shall be substantiated in any one of the following ways:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								A tracheostomy with dependence on mechanical ventilation for a minimum of six hours each day.
							</html:p>
							<html:p>
								(2)
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								Dependence on tracheostomy care requiring suctioning at least every six hours, and room air mist or oxygen as needed, and dependence on one of the five treatment procedures listed in subparagraphs (B) to (F), inclusive:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Dependence on intermittent suctioning at least every eight hours and room air mist and oxygen as needed.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								Dependence on continuous intravenous therapy, including administration of a therapeutic agent necessary for hydration or of intravenous pharmaceuticals, or intravenous pharmaceutical administration of more than one agent, via a peripheral or central line, without continuous
						infusion.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								Dependence on peritoneal dialysis treatments requiring at least four exchanges every 24 hours.
							</html:p>
							<html:p>
								(D)
								<html:span class="EnSpace"/>
								Dependence on tube feeding by means of a nasogastric or gastrostomy tube.
							</html:p>
							<html:p>
								(E)
								<html:span class="EnSpace"/>
								Dependence on other medical technologies required
						continuously, which, in the opinion of the attending physician and the Medi-Cal consultant, require the services of a professional nurse.
							</html:p>
							<html:p>
								(F)
								<html:span class="EnSpace"/>
								Dependence on biphasic positive airway pressure at least six hours a day, including assessment or intervention every three hours and lacking either cognitive or physical ability of the patient to protect the patient’s airway.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								Dependence on total parenteral nutrition or other intravenous nutritional support, and dependence on one of the treatment procedures specified in subparagraphs (A) to (F), inclusive, of paragraph (2).
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							<html:p>
								(4)
								<html:span class="EnSpace"/>
								Dependence on skilled nursing care in the administration of any three of the six treatment procedures specified in subparagraphs (A)
						to (F), inclusive, of paragraph (2).
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								Dependence on biphasic positive airway pressure or continuous positive airway pressure at least six hours a day, including assessment or intervention every three hours and lacking either cognitive or physical ability of the patient to protect the patient’s airway and dependence on one of the five treatment procedures specified in subparagraphs (A) to (E), inclusive, of paragraph (2).
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							<html:p>
								(g)
								<html:span class="EnSpace"/>
								The medical necessity determination outlined in subdivision (f) is intended solely for the evaluation of a patient who is potentially eligible and meets the criteria to be transferred from an acute care setting to a subacute level of care.
							</html:p>
							<html:p>
								(h)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								A provider seeking authorization
						for pediatric subacute care services pursuant to this section shall submit with a treatment authorization request, including an electronic treatment authorization request, a completed form DHCS 6200, “Information For Authorization/Reauthorization of Subacute Care Services—Pediatric Subacute Program,” or a successor form, when requesting authorization for pediatric subacute care services.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A Medi-Cal managed care plan shall not develop or use its own criteria to substantiate medical necessity for pediatric subacute care services with a condition or standard not enumerated in the form DHCS 6200, “Information For Authorization/Reauthorization of Subacute Care Services—Pediatric Subacute Program,” or a successor form.
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								A provider seeking authorization
						for adult subacute care services pursuant to this section shall submit with a treatment authorization request, including an electronic treatment authorization request, a completed form DHCS 6200A, “Information For Authorization/Reauthorization of Subacute Care Services—Adult Subacute Program,” or a successor form, when requesting authorization for adult subacute care services. 
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A Medi-Cal managed care plan shall not develop or use its own criteria to substantiate medical necessity for adult subacute care services with a condition or standard not enumerated in the form DHCS 6200A, “Information For Authorization/Reauthorization of Subacute Care Services—Adult Subacute Program,” or a successor form.
							</html:p>
							<html:p>
								(j)
								<html:span class="EnSpace"/>
								A Medi-Cal managed care plan shall not require a subsequent
						treatment authorization request for subacute care services upon a patient’s return from a bed hold for acute hospitalization as described in Section 51535.1 of Title 22 of the California Code of Regulations.
							</html:p>
							<html:p>
								(k)
								<html:span class="EnSpace"/>
								The department may impose sanctions on Medi-Cal managed care plans
						pursuant to Section 14197.7 for violations of subdivisions (h), (i), and (j).
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