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Medicaid Contract Purchasing Specifications

PURCHASING MEDICAID MANAGED CARE FOR CHILDREN WITH BEHAVIORAL HEALTH NEEDS

A TECHNICAL ASSISTANCE DOCUMENT

Chapter I: "Prime/Prime" Approach


Table of Contents

Part 1. Services for Children with Behavioral Health Needs

§101. In General

§102. Scope of Benefit

§103. Mental Health Services

§104. Substance Abuse Services

§105. Case Management Services

§105A. Treatment Plan

§105B. Inpatient Discharge Plan

§106. Prescription Drugs

§107. Guidelines

§108. Coverage Determination Standards and Procedures

§109. Joint MCO/BHO Protocol

§110. Definitions

Commentary: Under the "prime/prime" approach to contracting for managed behavioral health services, the purchaser (generally the state Medicaid agency) enters into contracts with one or more MCOs and one or more BHOs for the provision of services to Medicaid enrollees and makes capitation payments directly to both the MCOs and the BHOs. The MCOs furnish medical care; the BHOs, behavioral health services. Of course, the line between medical care and behavioral health services is not always clear, and there can be substantial overlap between the two categories. The illustrative language in this Chapter is designed to assist interested purchasers, MCOs and BHOs in clarifying the allocation of responsibility for these overlapping service categories.

In some instances (e.g., Tennessee), all Medicaid beneficiaries are enrolled in both an MCO and a BHO, whether or not they have behavioral health needs. In other cases (e.g., Hawaii), all Medicaid beneficiaries are enrolled in MCOs, but only those identified as having behavioral health needs are enrolled in BHOs. The illustrative language in this Chapter assumes that a purchaser has decided to enroll Medicaid-eligible children in a BHO only if the children have been identified either by the purchaser or by the other "prime" contractor (e.g., the MCO), as needing behavioral health services. Thus, the Chapter does not contain language relating to the identification of children with behavioral health needs. Instead, it focuses on the duties that the BHO owes to the children enrolled in it: what services it must cover, how it should deliver those services, and how its service duties relate to those of the MCO in which the child is also enrolled. Purchasers that elect to enroll all Medicaid-eligible children in a BHO may wish to refer to the illustrative language in Chapter II: " Prime/Subprime" relating to identification of children with behavioral health needs (§102).

§101. In General

(a) Basic Service Duty — Contractor shall, for each enrolled child with behavioral health needs (as defined in §110(f)), cover and furnish, or arrange for the furnishing of, the items and services enumerated under §102(a)in accordance with:

(1) the guidelines enumerated in §107;1

(2) the coverage determination standards and procedures under §108;and

(3) the joint MCO/BHO protocol under §109.

(b) Treatment Plan and Inpatient Discharge Plan _ Contractor shall, for each enrolled child with behavioral health needs (as defined in §110(f)), comply with:

(1) the requirements of §105A relating to the development and implementation of a treatment plan; and

(2) in the case of a child who is admitted to a facility, the requirements of §105B relating to the development and implementation of an inpatient discharge plan.

(c) Delivery of Services — Contractor shall furnish, or arrange for the furnishing of, items and services covered under §102(a)for each enrolled child with behavioral health needs (as defined in §110(f)), in accordance with the requirements for delivery of services enumerated in Part 2.

Commentary: The following illustrative language provides for the participation of an enrolled child's family or caregiver in certain aspects of management of the child's behavioral health needs by the Contractor, such as the development and implementation of the child's treatment plan. Participation would be voluntary on the part of the family or caregiver. Note that under this language the enrolled child would have no opportunity to object to such participation.

(d) Family Participation

(1) In General — Contractor, and each provider participating in Contractor's provider network, shall facilitate the participation of the family or caregiver of an enrolled child with behavioral health needs (as defined in §110(f)), if such family or caregiver is willing, in:

(A) the development, implementation, review and update of a treatment plan described in §105A for the child;

(B) the activities of the child's multidisciplinary team under §204;

(C) the development of the discharge plan under §105B;

(D) the selection of a behavioral health provider for the child consistent with §204(b);

(E) the selection of a case manager for the child under §105(b); and

(F) the Family Advisory Board established and maintained by Contractor under paragraph (3).

(2) Responsibility of Case Manager to Family — Contractor shall ensure that a case manager selected or assigned (under §105(b)) to an enrolled child with behavioral health needs (as defined in §110(f)) shall comply with the requirements of:

(A) §105(c)(1) (relating to learning about the child's diagnosis and treatment needs and the needs of the family or caregiver in supporting the child);

(B) §105(c)(3) (relating to informing the child and the child's family or caregiver about the child's treatment options);

(C) §105(c)(4) (relating to informing the child's family or caregiver about the contents of the treatment plan developed under§105A);

(D) §105(c)(5) (relating to assisting the child's family or caregiver in understanding Contractor's systems and procedures for managing care);

(E) §105(c)(6) (relating to assisting the child in accessing covered items and services);

(F) §105(c)(7) (relating to assisting the child in accessing and identifying payment sources for items and services);

(G) §105(c)(8) (relating to assisting the child in accessing providers identified in the treatment plan developed under §105A);

(H) §105(c)(11) (relating to tracking the child's progress under the child's treatment plan under §105Aand recommending any updates or revisions to such plan based on the experience of the child and the child's family or caregiver);

(I) §105(c)(13)(relating to the establishment of working arrangements with care coordinators from other service systems);

(J) §105(c)(14) (relating to accessing, under §210(g), Contractor's grievance procedures and the state fair hearing process);

(K) §105(c)(15) (relating to assisting the child's family or caregiver in documenting, establishing, and maintaining the child's eligibility for public program benefits); and

(L) §105(c)(16) (relating to informing the child's family or caregiver about participation in voluntary networks of families or caregivers and in the Family Advisory Board).

(3) Family Advisory Board — Contractor shall establish and maintain a Family Advisory Board that:

(A) consists of up to [ ] individuals who are parents or caregivers of an enrolled child with behavioral health needs (as defined in §110(f)) and who volunteer to participate as members of the Board;

(B) meets as needed (but no less frequently than [ ]) to:

(i) discuss concerns of families or caregivers of enrolled children with behavioral health needs;

(ii) review the results of any enrollee satisfaction surveys conducted by Contractor under §208(b)(6);

(iii) review any data collected and reported to Purchaser under §209(b);

(iv) review the disposition by Contractor under §210 of grievances and appeals filed by families or caregivers of enrolled children with behavioral health needs; and

(v) review Contractor's enrollee information materials under §203; and

(C) has an opportunity on a [ ] basis to meet with Contractor's Chief Executive Officer and [drafter insert reference to Contractor's Medical Director and other appropriate officials] to advise the CEO [and other officials] on matters of concern to the Board.

§102. Scope of Benefit

Commentary: The December 17, 1997 letter from HCFA to State Medicaid Directors explains that each Medicaid risk contract with an MCO "...must include provisions that address the responsibility of the managed care entity to furnish care and services when medically necessary in sufficient detail to ensure that beneficiaries receive needed services to which they are entitled under the contract." With respect to behavioral health services for children, the most critical benefit category is Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) services.

All children eligible for Medicaid are entitled to EPSDT. This entitlement is of particular importance to children with behavioral health needs and the providers who serve them. See Medicaid Managed Care and Children with Special Needs: An EPSDT Checklist, http://www.nhelp.org/pubs/mc1997checklist-epsdt.html.

The EPSDT benefit guarantees coverage of "screening services" which must, at a minimum, include "a comprehensive health and developmental history (including assessment of both physical and mental health development)." Section 1905(r)(1)(B)(i) of the Social Security Act, 42 U.S.C. §1396d(r)(1)(B)(i). The EPSDT benefit also guarantees that if a "mental illness or condition" is discovered during the course of an EPSDT screening, whether periodic or interperiodic, the child will be covered for all "necessary health care, diagnostic services, treatment, and other measures ...to correct or ameliorate" the illness or condition, "whether or not such services are covered under the State plan," so long as the service is eligible for federal matching funds. Section 1905(r)(5) of the Social Security Act, 42 U.S.C.§1396d(r)(5). For example, if a child is determined through an EPSDT screening to require family education and support services, and the state has not opted to cover rehabilitative services under 42 C.F.R. 440.130(d), the child is entitled to coverage for the family education and support services. Similarly, if a child is determined through a screening to need 6 months of residential treatment, and the state Medicaid plan covers only 1 month of such treatment per year for an adult, the child is entitled to coverage for the full 6 months of treatment.

State Medicaid agencies are not required to contract with MCOs or BHOs for EPSDT services, or for the full scope of EPSDT services. Of course, the state remains responsible for coverage on a fee-for-service basis of those EPSDT services for which it does not contract with an MCO or BHO. To the extent that states do contract with BHOs for the provision of some or all EPSDT services, they remain accountable for the delivery of such services by the contracting BHOs. See Complaint and Consent Decree in John B. v. Menke, C.A. No. 3-98 0168 (M.D. Tenn., February 25, 1998), http://www.ichp.edu/managed/materials/902962074.html.

The following language is designed to assist interested purchasers in articulating which EPSDT services will be provided under the purchasing agreement with the BHO, and which will remain the responsibility of the state Medicaid agency to pay for directly or to purchase through an agreement with an MCO. The delineation of responsibilities between a BHO and an MCO for furnishing EPSDT services in a "prime/prime" contracting arrangement is addressed in the illustrative language at §109 relating to joint MCO/BHO protocols. For illustrative language spelling out the EPSDT benefit, see Part 1 of the Medicaid Pediatric Purchasing Specifications (September, 1999)("MEDICAIDSPECS"), www.gwu.edu/~chsrp. For an analysis of EPSDT provisions in state Medicaid managed care contracts, see Rosenbaum, S., et al., "Key Findings in Pediatric Coverage and Services," Negotiating the New Health System, (3rd Edition, 1999) Volume 1, pp. 12 - 17, www.gwu.edu/~chsrp.

(a) Covered Items and Services2 — Contractor shall furnish, or arrange for the furnishing of, to each enrolled child with behavioral health needs (as defined in §110(f)) the items and services that are:

(1) mental health services described in §103;

(2) substance abuse services described in §104;

(3) case management services described in §105; and

(4) prescription drugs described in §106.

(b) Items and Services for Which Purchaser or MCO Remains Responsible

(1) Items and Services Covered by Purchaser — Contractor has no duty under [drafter insert name of purchasing document] to furnish, or arrange for the furnishing of, the following items and services:

(A) [drafter insert list of items and services covered under state Medicaid plan (or, in the case of EPSDT services, eligible for federal matching payments) but excluded from coverage under this purchasing agreement].

(2) Duty of MCO — Contractor has no duty under [drafter insert name of purchasing document] to furnish, or arrange for the furnishing of, the items and services identified in the joint MCO/BHO protocol entered into under §109 as the duty of an MCO (as defined in §110(j)) with respect to an enrolled child with behavioral health needs (as defined in §110(f)) during the period for which the joint protocol (and any amendment thereof) is effective.

(3) Information to Enrolled Children — (C)ontractor shall comply with the requirements of §203(b)(2) relating to provision of information to enrolled children with behavioral health needs (as defined in §110(f))(and the families and caregivers of such children) regarding items and services described in paragraphs (1) and (2).

§103. Mental Health Services — Mental health services covered under [drafter insert name of purchasing document] are:

Commentary: The following illustrative language lists a number of categories of mental health services appropriate to children with behavioral health needs:

  • (a) Assessment, Diagnosis, and Related Services
    • (1) Information and Referral Services
    • (2) Screening, Assessment, Diagnosis, and Care Planning Services
  • (b) Crisis Services
    • (1) Telephone Crisis Services
    • (2) Walk-in Crisis Services
    • (3) Mobile Outreach Crisis Services
    • (4) Residential Crisis Services
    • (5) Crisis Respite Care Services
    • (6) Crisis Defined
  • (c) Non-Residential Treatment Services
    • (1) Medication Management
    • (2) Outpatient Clinical Services
    • (3) Family Education and Support Services
    • (4) Home-Based Services
    • (5) Therapeutic Respite Services
    • (6) Behavioral Aide Services
    • (7) Day Treatment/Partial Hospitalization Services
    • (8) Skill Development/Rehabilitation Services
    • (9) Therapeutic Nursery Services
  • (d) Residential Services
    • (1) Residential Treatment Services
    • (2) Therapeutic Foster Care/Therapeutic Family Home Services
    • (3) Theapeutic Group Home Services
    • (4) Supported Independent Living Services
    • (5) Acute Inpatient Hospital Services
  • (e) Service Supports and Coordination
    • (1) Collateral Contacts Services
    • (2) Consultation Services
    • (3) Transportation
    • (4) Wrap-Around Services and Supports
    • (5) Case Management Services

This listing is intended as guidance for interested purchasers in determining the particular benefits categories for which purchaser will contract with a "prime" BHO. A purchaser could select one, several, or all of these illustrative service categories as the basis for negotiating and purchasing a benefit package from a BHO. Because definitions of mental health services vary from state to state, the benefits categories set forth below may need to be adapted to a particular state's statutory and regulatory framework. For an overview of mental health service interventions for children and adolescents, see DHHS, Mental Health: A Report of the Surgeon General (1999), pp. 168-179.

It is important to understand what this illustrative language is NOT intended to do. First, this language is not a recommendation for a minimum benefit package for children with behavioral health needs to be purchased through a BHO. Nor is it intended to reflect a professional consensus on a uniform set of mental health service categories or definitions of those categories. Instead, this illustrative language simply reflects the views of knowledgeable professionals who reviewed these purchasing specifications. Interested purchasers may wish to adapt the format and content of the following illustrative language to the mental health service definitions in common use in the purchaser's state. Interested purchasers may also wish to refer to other sources such as Moss, Contracting for Managed Substance Abuse and Mental Health Services: A Guide for Public Purchasers Center for Substance Abuse Treatment, SAMHSA (1998), Appendix C.

Second, this language does not, and is not intended to, define mental health services to which Medicaid-eligible children are entitled or for which federal Medicaid matching funds are available. As discussed in the commentary accompanying §102 above, Medicaid-eligible children are entitled to EPSDT services, which include a range of mental health screening, diagnostic, and treatment services. These services are defined in each state's Medicaid plan or regulations in a manner consistent with applicable federal regulations, 42 C.F.R. 42 C.F.R. §§440.40(b), 441.50 et seq., and §§5150, 5123.2, 5240, and 5310 of the State Medicaid Manual, http://www.hcfa.gov/pubforms/progman, Pub. 45. Because these regulations and guidelines allow states discretion in the definition of individual services, these definitions tend to vary from state to state. For service categories and definitions used in state Medicaid risk contracts during 1997, see Negotiating the New Health System, (3rd Edition, 1999) Volume 2, Part 2, Table 2.2, pp. 2-390 - 2-600, www.gwu.edu/~chsrp.

The following illustrative language has not been approved by HCFA; interested purchasers should not assume that the definitions set forth below are either required by Federal EPSDT law or are qualified for federal Medicaid matching payments.

A recent review by the HHS Inspector General of Medicaid mental health managed care programs in 7 states concluded with a recommendation that HCFA encourage states to specify services for children's mental health in managed care contracts: "Providing more detailed specifications on services that managed care organizations will provide will help ensure that children receive the specialized care they require." DHHS Office of Inspector General, Mandatory Managed Care: Children's Access to Medicaid Mental Health Services (January 2000), OEI-04-97-00344, p. 2, www.dhhs.gov/progorg/oei.

(a) Assessment, Diagnosis, and Related Services

(1) Information and Referral Services — The undertaking of the following activities for an enrolled child with behavioral health needs (as defined in §110(f)) by a case manager under §105(c), by other members of the child's multidisciplinary team under §204, or by Contractor's staff:

(A) identification of the child's needs for behavioral health services; and

(B) the referral of the child to behavioral health providers (as defined in §110(b)) to address such needs.

(2) Screening, Assessment, Diagnosis, and Care Planning Services

Commentary: As discussed above, the contractor would be required under §102(a)(1) to furnish or arrange for the furnishing of the mental health services described in this section as selected by purchaser. If the screening services described in the following subparagraph (A) are included, the purchaser may wish to add language to §102(a)(1)allowing a contractor to waive the screening services requirement in the case of enrolled children who, within a specified time of enrollment, have been screened for developmental, health, and behavioral health needs.

(A) Screening Services — A face-to-face encounter by an enrolled child with behavioral health needs (as defined in §110(f)) with a provider participating in Contractor's provider network within [ ] days of the child's enrollment to determine:

(i) the child's developmental, health, and behavioral health needs; and

(ii) the necessity for referral of the child to a behavioral health provider (as defined in §110(b)) for an assessment under subparagraph (B), diagnostic services under subparagraph (C), or care planning services under subparagraph (D).

(B) Assessment Services — A comprehensive evaluation of an enrolled child with behavioral health needs (as defined in §110(f)) by a behavioral health provider (as defined in §110(b)) within [ ] days of the child's enrollment through a face-to-face evaluation and, as appropriate, diagnostic testing, of the child's symptomatology and psychosocial functioning in order to determine the child's treatment needs (whether or not for purposes of a coverage determination under §108(a)(3)(D)).

(C) Diagnostic Services _ A specific determination of the behavioral health conditions or disorders of an enrolled child with behavioral health needs (as defined in §110(f)) by a behavioral health provider (as defined in §110(b)) licensed under state law to make such determinations following:

(i) the DSM-IV guidelines under §107(f); or

(ii) the ICD-9-CM guidelines under §107(i).

(D) Care Planning Services — The activities under §105A(b)(1) (relating to the development of a treatment plan).

(b) Crisis Services

(1) Telephone Crisis Services — A telephone line, staffed on a 24-hour per day, 7-day per week basis in accordance with the standards described in §206(b)(1)(B), to respond to calls from or on behalf of a child who is in crisis (as defined in paragraph (6)) (whether or not the child is enrolled in Contractor) by:

(A) assessing the need for immediate face-to-face evaluation of the nature and severity of a behavioral health crisis of the child;

(B) in the case of an enrolled child with behavioral health needs,

(i) immediately arranging for the provision of mobile outreach crisis services under paragraph (3); or

(ii) immediately referring the child for appropriate treatment by a provider participating in Contractor's network; and

(C) in the case of a child not enrolled in Contractor, immediately referring the child, where indicated, for appropriate treatment by [drafter insert name of accessible public provider].

(2) Walk-in Crisis Services — The following services furnished on a 24-hour per day, 7 day per week basis, by behavioral health providers (as defined in §110(b)) participating in Contractor's provider network, or at hospitals or mental health centers participating in Contractor's provider network, to an enrolled child with behavioral health needs who is in crisis (as defined in paragraph (6)):

(A) immediate face-to-face evaluation of the nature and severity of the behavioral health crisis of the child and the need for immediate treatment of the child; and

(B) where indicated, immediate referral for treatment.

(3) Mobile Outreach Crisis Services — The following services furnished on a 24-hour per day, 7-day per week basis by behavioral health providers (as defined in §110(b)) to an enrolled child with behavioral health needs who is in crisis (as defined in paragraph (6)) at the location where the child is in crisis:

(A) an immediate face-to-face evaluation of the nature and severity of the child's behavioral health crisis and the need for immediate treatment of the child; and

(B) where indicated, immediate referral for treatment.

(4) Residential Crisis Services — Acute, short-term services furnished at a facility licensed under [drafter insert reference to applicable state law or regulation] by a behavioral health provider (as defined in §110(b)) to an enrolled child with behavioral health needs who is in crisis (as defined in paragraph (6)) for the purpose of stabilizing the child 's condition or disorder and reducing the risk of harm to the health or safety of the child or other individuals.

(5) Crisis Respite Care Services — Supervision by a behavioral health provider (as defined in §110(b)) of an enrolled child with behavioral health needs who is in crisis (as defined in paragraph (6)) and resides at home for the purpose of relieving the child's family or caregiver for a period of up to [ ] hours of the responsibility of caring for the child.

(6) Crisis Defined3 — A crisis exists when the behavioral health condition or disorder of an enrolled child with behavioral health needs (as defined in §110(f)) in the view of the child (if the child is [drafter insert] years or older), or of the child's family or caregiver, is likely to present, or presents, a risk of harm to the health or safety of the child or other individual.

(c) Nonresidential Treatment Services

(1) Medication Management — The prescription and monitoring of medications for the treatment of a behavioral health condition or disorder of an enrolled child with behavioral health needs (as defined in §110(f)) by a physician or other health professional participating in Contractor's provider network who has undertaken responsibility for treatment of the child and who is licensed to prescribe medications under state law.

(2) Outpatient Clinical Services — Individual therapy, family therapy, group therapy, and play therapy furnished to an enrolled child with behavioral health needs (as defined in §110(f)) by a behavioral health provider (as defined in §110(b)) at a location other than the child's home, an inpatient hospital setting, or a residential treatment facility.

(3) Family Education and Support Services — The provision of information and assistance by a provider participating in Contractor's provider network under §205(b), or by an employee of Contractor, to the family or caregiver of an enrolled child with behavioral health needs (as defined in §110(f)) in the care and management of the child's mental health disorder, including:

(A) provision of information regarding the nature of the child's disorder;

(B) training in, and assistance with, the administration and monitoring of medications prescribed for the child;

(C) provision of information regarding the relationship between the child's development and the child's mental health disorder; and

(D) teaching the skills necessary to manage the child's behavioral health needs.

(4) Home-based Services — Individual therapy, family therapy, occupational therapy, and case management services furnished to an enrolled child with behavioral health needs (as defined in §110(f)) and to the child's family or caregiver at the child's home.

(5) Therapeutic Respite Services — Supervision by a behavioral health provider (as defined in §110(b)) of an enrolled child with behavioral health needs (as defined in §110(f)) who resides at home to relieve the child's family or caregiver of the responsibility of caring for the child for a period of up to [ ] hours per [ ].

(6) Behavioral Aide Services — Counseling of an enrolled child with behavioral health needs (as defined in §110(f)) by a qualified individual employed by a behavioral health provider (as defined in §110(b)) participating in Contractor's provider network in the child's home, at the child's school, or at another location (other than a residential treatment facility or an inpatient hospital setting) for a period of up to [ ] hours per [ ].

Commentary: Many states employ day treatment models of service delivery that integrate educational and therapeutic services in neighborhood schools. These models offer an environment that more closely resembles an environment for children without disabilities or mental health conditions than do models involving institutionally based services. In these models, school districts, often in partnership with public mental health systems, implement programming that integrates educational and therapeutic components, using an IEP format that meets mental health and special education requirements.

(7) Day Treatment/Partial Hospitalization Services — A treatment program for an enrolled child with behavioral health needs (as defined in §110(f)) furnished on an ambulatory basis by a behavioral health provider (as defined in §110(b)) for a period of up to [ ] hours per day, [ ] days per week:

(A) within a [drafter insert reference to state law definition of structured therapeutic settings]; and

(B) consisting of one or more types of services covered under this section.

(8) Skill Development/Rehabilitation Services — Services furnished by a behavioral health provider (as defined in §110(b)) to enable an enrolled child with behavioral health needs (as defined in §110(f)) to achieve a maximum level of functioning within the community in which the child lives, including training of the child, the child's family or caregiver, and other individuals who have educational or child care responsibilities for the child, with respect to:

(A) socialization skills;

(B) daily living skills appropriate to the child's age; and

(C) recognition and management of symptoms of the child's behavioral health condition or disorder, including:

(i) medication management; and

(ii) behavioral management.

(9) Therapeutic Nursery Services — A treatment program for an enrolled child with behavioral health needs (as defined in §110(f)) who is under the age of [ ] furnished on an ambulatory basis by a behavioral health provider (as defined in §110(b)) for a period of up to [ ] hours per day, [ ] days per week:

(A) within a [drafter insert reference to state law definition of structured therapeutic settings]; and

(B) consisting of early intervention services as defined under §632(4) of Part C of the Individuals with Disabilities Education Act, 20 U.S.C. §1432(4), and one or more of the other types of services covered under this section.

(d) Residential Services

(1) Residential Treatment Services — Treatment for an enrolled child with behavioral health needs (as defined in §110(f)) provided at a facility licensed by the state under [drafter insert reference to state law relating to provision of residential behavioral health services], including:

(A) individual, group, or family therapies;

(B) behavioral management;

(C) social skill development;

(D) medication management; and

(E) case management services under §105.

(2) Therapeutic Foster Care/Therapeutic Family Home Services — Treatment provided to an enrolled child with behavioral health needs (as defined in §110(f)):

(A) in a home licensed or certified to furnish such treatment under [drafter insert reference to applicable state law or regulation];

(B) by individuals trained under [drafter insert reference to applicable state law or regulation] in the management of behavioral health needs of children.

(3) Therapeutic Group Home Services — Treatment provided to an enrolled child with behavioral health needs (as defined in §110(f)) in a group home licensed or certified under [drafter insert reference to applicable state law or regulation].

(4) Supported Independent Living Services — Services furnished to an enrolled child with behavioral health needs (as defined in §110(f)) who is an adolescent (as defined under §110(a)) and who does not live at home by an individual trained in behavioral management under [drafter insert reference to applicable state law or regulation] to prepare the adolescent to live independently and to engage in paid employment.

(5) Acute Inpatient Hospital Services — Inpatient psychiatric services for individuals under age 21 in psychiatric facilities or programs described in [drafter insert reference to state Medicaid plan provisions implementing 42 C.F.R. §§441.150 - 441.156].

(e) Service Supports and Coordination

Commentary: The following illustrative language describes two service categories, collateral contacts services and consultation services, that involve the exchange of medical information concerning an enrolled child with behavioral health needs. The provision of these services, like the provision of other covered services, would be subject to the confidentiality requirements set forth in §210.

(1) Collateral Contacts Services — The activities of a behavioral health provider (as defined in §110(b))participating in Contractor's provider network in connection with the provider's treatment of an enrolled child with behavioral health needs (as defined in §110(f)) that relate to obtaining information material to the child's treatment from individuals familiar with the child's behavioral health needs.

(2) Consultation Services — The activities of a behavioral health provider (as defined in §110(b))participating in Contractor's provider network who is treating an enrolled child with behavioral health needs (as defined in §110(f)) that relate to consulting, subject to the consent of the child's family or caregiver, for the purpose of more effectively treating the child's behavioral health needs:

(A) with the child's multidisciplinary team under §204; or

(B) with another provider (including the child's primary care provider) or individual having treatment or educational responsibilities for the child.

(3) Transportation — Services as defined in [drafter insert reference to state Medicaid plan provisions implementing 42 C.F.R. §440.170].

(4) Wrap-around Services and Supports — Items or services not otherwise described in this section that are:

(A) specified by the multidisciplinary team of an enrolled child with behavioral health needs under §204 in the child's treatment plan under §105A(c);

(B) necessary to the effective implementation of the items and services described in this section and specified in the child's treatment plan under §105A(c);and

(C) covered under [drafter insert reference to State Medicaid plan] or covered under [drafter insert reference to State EPSDT benefit].

(5) Case Management Services — The services described in §105.

§104. Substance Abuse Services — Substance abuse services covered under [drafter insert name of purchasing document] are:

Commentary: The following illustrative language lists a number of categories of substance abuse services appropriate to children with behavioral health needs. This listing is intended as guidance for interested purchasers in determining which particular categories to contract for on a risk basis with a "prime" BHO. A purchaser could select one, several, or all of these illustrative service categories as the basis for negotiating and purchasing a benefit package from a BHO. Because definitions of substance abuse services vary from state to state, the benefits categories set forth below may need to be adapted to a particular state's statutory and regulatory framework (see, e.g., footnotes to subsections (h) - (j) below).

It is important to understand what this illustrative language is NOT intended to do. First, this language is not a recommendation for a minimum benefit package for children with behavioral health needs to be purchased through a BHO. Nor is it intended to reflect a professional consensus on a uniform set of substance abuse service categories or definitions of those categories. Interested purchasers may wish to adapt the format and content of the following illustrative language to the substance abuse service definitions in common use in the purchaser's state. Interested purchasers may also wish to refer to other sources such as Moss, Contracting for Managed Substance Abuse and Mental Health Services: A Guide for Public Purchasers, Center for Substance Abuse Treatment, SAMHSA (1998), Appendix C.

Second, this language does not, and is not intended to, define substance abuse services to which Medicaid-eligible children are entitled or for which federal Medicaid matching funds are available. As discussed in the commentary accompanying §102 above, Medicaid-eligible children are entitled to EPSDT services, which include a range of mental health screening, diagnostic, and treatment services. These services are defined in each state's Medicaid plan or regulations in a manner consistent with applicable federal regulations, 42 C.F.R. 42 C.F.R. §§440.40(b), 441.50 et seq., and §§5150, 5123.2, 5240, and 5310 of the

State Medicaid Manual, http://www.hcfa.gov/pubforms/progman, Pub. 45. Because these regulations and guidelines allow states discretion in the definition of individual services, these definitions tend to vary from state to state. For service categories and definitions used in state Medicaid risk contracts during 1997, see Negotiating the New Health System, (3rd Edition, 1999) Volume 2, Part 2, Table 2.2, pp. 2-390 - 2-600, www.gwu.edu/~chsrp.

The illustrative language below has not been approved by HCFA; interested purchasers should not assume that the definitions set forth below are either required by Federal EPSDT law or are qualified for federal Medicaid matching payments.

(a) Assessment, Diagnosis, and Related Services — The services described in §103(a).

(b) Crisis Services — The services described in §103(b).

(c) Outpatient Services — Services for the evaluation of, treatment of, and recovery from substance abuse-related disorders furnished to an enrolled child with behavioral health needs (as defined in §110(f)) by a qualified substance abuse provider (as defined in §110(o)) in office practice sites, behavioral health clinics, primary care clinics, and other nonresidential sites that meet [drafter insert reference to state licensing or certification criteria] in regularly-scheduled sessions of fewer than [ ]4 hours per week.

(d) Intensive Outpatient Treatment Services — Counseling and education regarding substance abuse-related disorders furnished to an enrolled child with behavioral health needs (as defined in §110(f)) by a qualified substance abuse provider (as defined in §110(o)) for [ ]5 or more hours per week in a setting other than a hospital or a residential treatment facility.

(e) Partial Hospitalization Services — Medical, laboratory, and psychiatric services furnished on an ambulatory basis to an enrolled child with behavioral health needs (as defined in §110(f)) by a qualified substance abuse provider (as defined in §110(o)) for a period of up to [ ]6 hours per week in [drafter insert reference to state law definition of structured therapeutic settings].

(f) Residential Treatment Services — Services for the treatment of, and recovery from, substance abuse-related disorders furnished to an enrolled child with behavioral health needs (as defined in §110(f)) who lives in a residential treatment facility staffed 24 hours per day that is licensed or certified by the state under [drafter insert appropriate state law reference] by a qualified substance abuse provider (as defined in §110(o)).

(g) Inpatient Hospital Services — Services for the evaluation of, treatment of, and recovery from substance abuse-related disorders furnished to an enrolled child with behavioral health needs (as defined in §110(f)) who is admitted to an acute care general hospital or acute psychiatric hospital licensed by the state under [drafter insert appropriate regulatory reference] furnished by a qualified substance abuse provider (as defined in §110(o)).

(h) Ambulatory Detoxification Services — Services for the withdrawal from alcohol, opiates, or other drugs furnished by a qualified substance abuse provider (as defined in §110(o)) to an enrolled child with behavioral health needs (as defined in §110(f)) on an outpatient basis in a program certified by the state under [drafter insert reference to state licensure categories for outpatient chemical dependency programs for children and adolescents].7

(i) Residential Detoxification Services — Services for the withdrawal from alcohol, opiates, or other drugs furnished by a qualified substance abuse provider (as defined in §110(o)) to an enrolled child with behavioral health needs (as defined in §110(f)) in [drafter insert reference to state licensure categories for residential treatment facilities for children or adolescents with chemical dependency].8

(j) Inpatient Detoxification Services — Services for the withdrawal from alcohol, opiates, or other drugs furnished by a qualified substance abuse provider (as defined in §110(o)) to an enrolled child with behavioral health needs (as defined in §110(f)) in a hospital, [drafter insert state law term for "step-down" unit], or other facility licensed or certified by the state to medically manage detoxification of children or adolescents under [drafter insert appropriate state law references].9

(k) Service Supports and Coordination — The services described in §103(e) (relating to collateral contracts services, consultation services, transportation services, wrap-around services and supports, and case management services).

§105. Case Management Services

Commentary: The following illustrative language assumes that the Purchaser wishes to provide case management services to children with behavioral health needs through the contracting BHOs in which such children are enrolled. It should be noted that states are not required to offer case management services to Medicaid beneficiaries generally, or to this population in particular, and some states may not cover these services for this population as a whole. (Of course, for an individual child who is determined through an EPSDT screen to have a medical need for case management services, such services must be covered even if they are not generally covered by under the state's Medicaid program). For a review of the case management models used by Colorado, Delaware, New Mexico, Oregon, and Washington with respect to various beneficiary populations, see Rosenbach and Young, Care Coordination in Medicaid Managed Care: A Primer for States, Managed Care Organizations, Providers, and Advocates (March 2000), www.chcs.org.

The federal Medicaid statute does not contain a single "case management services" category. Instead, Medicaid covers services of this type under:

(1) the mandatory early and periodic screening, diagnostic, and treatment (EPSDT) services benefit category, §1905(r) of the Social Security Act, 42 U.S.C. §1396d(r);

(2) the optional targeted case management benefit, §1915(g) of the Social Security Act, 42 U.S.C. §1396n(g); and

(3)home and community-based services, §1915(c)(4)(B) of the Social Security Act, 42 U.S.C. §1396n(c)(4)(B).

Medicaid makes a further distinction between administrative case management services (such as intake processing, eligibility determinations, and outreach) which the federal government will match at a 50 percent rate, and non-administrative case management services, such as EPSDT services and targeted case management services, which are matched at each state's regular matching rate for services (ranging from 50 to 80 percent).

HCFA's State Medicaid Manual §4302.2H explains that when case management services are found to be medically necessary, states have several options:

(1) EPSDT: "Case management services may be provided to persons participating in the EPSDT program by an existing service provider such as a physician or clinic referring the child to a specialist.

(2) Administrative Case Management: "Case management services may be provided to EPSDT participants by the Medicaid agency or another state agency, such as Title V, the Health Department, or an entity with which the Medicaid agency has an interagency agreement."

(3) Targeted Case Management Services: "The service must meet the statutory definition of case management services as defined in §1915(g)" (e.g., "services which will assist individuals eligible under the plan in gaining access to needed medical, social, educational, and other services"). www.hcfa.gov/pubforms/pub45pdf/smm4t.htm.

The following sample specifications assume that, in the case of Medicaid-eligible children, that the services characterized as "case management" services for purposes of this purchasing agreement are covered under the state's Medicaid plan. These specifications also assume that these "case management" services are covered under the state Medicaid plan as services, not as administrative costs, and are therefore eligible for federal matching payments at the state's regular matching rate, just as any other Medicaid service covered under this purchasing agreement.  Note, however, that it is not possible to state with certainty that the case management services set forth in the following illustrative language would qualify for federal Medicaid matching funds. That determination can be made only by HCFA.

(a) In General — Contractor shall comply with the requirements of this section relating to:

(1) the selection of a case manager under subsection (b); and

(2) the duties of the case manager (as defined in §110(c)) under subsection (c).

(b) Selection of Case Manager

Commentary: The following illustrative language assumes that the family or caregiver of an enrolled child with behavioral health needs has the option of refusing to accept a case manager for the child. It also assumes that the family or caregiver has the option of declining to accept the particular case manager Contractor wishes to assign to the child. The language would not, however, require Contractor to hire or subcontract with any particular case manager in order to meet the wishes of the family or caregiver. The family or caregiver's choice would be limited to those case managers (including a member of the multidisciplinary team, if the family or caregiver so chooses).

(1) In General — Contractor shall, within [ ] days of enrollment, notify in writing each enrolled child with behavioral health needs (as defined in §110(f)) (and the child's family or caregiver) of:

(A) the child's options under paragraphs (2) and (3) to be assigned to a case manager selected by the child's family or caregiver (or, in the case of an adolescent, the adolescent) for purposes of receiving case management services under this section; and

(B) the child's option under paragraph (4) to refuse to accept the assignment of a case manager.

(2) Option to Receive Case Management Services from Member of Multidisciplinary Team — Contractor shall allow the family or caregiver of an enrolled child with behavioral health needs (or in the case of an adolescent, the adolescent) to select as the child's case manager a member of the child's multidisciplinary team under §204(b) who is willing to assume the responsibilities enumerated under subsection (c) with respect to the child.

(3) Option to Receive Case Manager Services from Case Manager not a Member of Multidisciplinary Team — Contractor shall allow the family or caregiver of an enrolled child with special behavioral health needs (or in the case of an adolescent, the adolescent) to receive case management services from a case manager (as defined in §110(c)) other than a member of the child's multidisciplinary team under §204if the case manager is approved by the child's multidisciplinary team and participates in Contractor's provider network under §205.

(4) Option to Refuse a Case Manager — Contractor may assign an enrolled child with behavioral health needs to a case manager (as defined in §110(c)) only if the child's family or caregiver (or, in the case of an adolescent, the adolescent):

(A) agrees to accept the assignment of a case manager; and

(B) selects a case manager under paragraph (2) or (3).

(5) Responsibilities of Case Manager — If a case manager has been selected by or assigned to an enrolled child or the child's family or caregiver under paragraphs (2) and (3), Contractor shall ensure that the case manager carries out the duties required under subsection (c).

(6) Capacity of Case Manager — Contractor shall ensure that each case manager participating in Contractor's provider network under §205(b) shall have case management responsibilities with respect to no more than [ ]10 enrolled children with behavioral health needs at any one time.

Note: need to address reassignment of case manager

(c) Responsibilities of Case Manager — Contractor shall ensure that, in the case of an enrolled child with behavioral health needs (as defined in §110(f)) who has selected or been assigned to a case manager under subsection (b), the case manager, consistent with the prohibition in §108(b)(3)(relating to utilization management), shall:

(1) make every effort to meet with the family or caregiver of the child, in person or by telephone, within [ ] of being assigned, in order to learn about:

(A) the child's diagnosis and treatment needs; and

(B) the needs of the family or caregiver in supporting the child;

(2) participate as a member of the child's multidisciplinary team under §204(a) and in the development of a treatment plan under §105A(b);

(3) assist the family or caregiver in understanding the child's diagnosis and treatment options (whether or not the family or caregiver participates in the child's multidisciplinary team);

(4) in the case of a family or caregiver who has not elected to participate in the child's multidisciplinary team under §204, inform the family or caregiver (or, in the case of an enrolled adolescent with behavioral health needs, the adolescent) of:

(A) the contents of the child's (or adolescent's) treatment plan developed under§105A; and

(B) the need for and management of any drugs prescribed to treat the child's behavioral health disorder or condition;

(5) assist the family or caregiver in understanding Contractor's procedures and systems for managing the care of enrolled children with behavioral health needs;

(6) assist the child in accessing items and services specified in the child's treatment plan under §105A(c)that are:

(A) the duty of Contractor under §102(a); and

(B) required under each of the following plans (if any) that has been developed for the child:

(i) an IFSP (as defined in §110(i));

(ii) an IEP (as defined in§110(h));

(iii) a plan developed for the child by [drafter insert name of state child welfare agency]; and

(iv) [drafter insert references to other applicable treatment plans];

Commentary: The illustrative language in paragraph (7) assumes that the BHO's case manager has the responsibility for assisting an enrolled child's family or caregiver in having payment made for services covered under a state's Medicaid program that are not the duty of the BHO. Another approach would be for the family or caregiver to be referred to appropriate state or local agencies.

(7) if requested by the child (or, except in the case of an adolescent, the child's family or caregiver), assist the child, in manner consistent with §210(d) (relating to confidentiality protections), in accessing and identifying payment sources for items and services that are:

(A) specified in the child's treatment plan under §105A(b); and

(B) the responsibility of Purchaser or MCO under §102(b);

(8) assist the child in accessing providers participating in Contractor's provider network that are identified in the child's treatment plan under §105A;

(9) refer the child to the [drafter insert reference to responsible agencies under Part B and Part C of the Individuals with Disabilities Education Act, 20 U.S.C. §1400 et seq.] when referral is determined by the child's multidisciplinary team under §204 to be indicated;

(10) facilitate, consistent with the confidentiality protections under §210(b), the exchange of information and medical records among Contractor, the child's multidisciplinary team under §204, and [drafter insert reference to responsible agencies under Part B and Part C of the Individuals with Disabilities Education Act, 20 U.S.C. §1400 et seq.];

(11) meet (in person or by telephone) with the child and the child's family or caregiver in order to track the child's progress under the child's treatment plan under §105Aand, based on the experience of the child and the child's family or caregiver, make recommendations to the child's multidisciplinary team under §204 with respect to updating the treatment plan under §105A(b)(5);

(12) in the case of a child discharged from an inpatient facility or residential treatment facility, carries out the case manager's responsibility under §105B(a)(3)and§105B(b)(1) for the implementation of the written discharge plan for the child;

(13) establish working arrangements with care coordinators or case managers (other than those employed by, or under contract to, Contractor) who have responsibilities with respect to the child or the child's non-behavioral health care needs;

(14) assist the child (and the child's family or caregiver) in:

(A) understanding the child's entitlement to a fair hearing under 42 C.F.R. §430.220 and to a continuation of services pending the fair hearing under 42 C.F.R. §430.230 and, in the case of denial, termination, or reduction of items and services covered under §102(a), in effectuating these entitlements; and

(B) accessing, under §210(g), Contractor's grievance procedures and the state fair hearing process;

(15) assist the child (and the child's family or caregiver) in documenting, establishing, and maintaining the child's eligibility for [drafter insert reference to state Medicaid program], the Supplemental Security Income (SSI) program under Title XVI of the Social Security Act, 42 U.S.C. §1381 et seq., and other public program benefits;

(16) inform the child's family or caregiver of the manner in which the child's family or caregiver may participate in:

(A) voluntary networks organized for mutual support by families or caregivers of children with behavioral health needs; and

(B) the Family Advisory Board established and maintained by Contractor under §101(d)(3); and

(17) in the case of a child with behavioral health needs who is an adolescent as defined in §110(a), assist the adolescent in identifying and overcoming transitional issues relating to accessing items and services described in paragraph (6).11

Commentary: In tracking a child's progress under a treatment plan, the child's case manager will need to have access to information regarding the services provided to the child. The following illustrative language assumes that Contractor will have such information with respect to the services received by the child from providers participating in Contractor's provider network, and that Purchaser will have information with respect to services received from providers outside of Contractor's provider network that bill Purchaser for the care they furnish to the child.

(d) Duty of Purchaser to Assist in Tracking Use of Out-of-Plan Services — Purchaser shall make available on request, to the case manager of an enrolled child with behavioral health needs, information relating to the payment by Purchaser of claims for items or services:

(1) furnished to the child by providers not participating in Contractor's provider network; and

(2) for which Contractor has not made out-of-network arrangements under §205(d).

§105A. Treatment Plan

Commentary: The following illustrative language would require Contractor to develop a treatment plan for each enrolled child with behavioral health needs. These children exhibit a wide variety of behavioral health conditions. Treatment plans will vary depending upon the complexity of a child's behavioral health needs: children with multiple diagnoses are likely to require more extensive treatment plans than those with less complex needs. The following illustrative language is designed to identify the elements of a treatment plan regardless of the complexity of the child's needs.

(a) Duty to Develop Treatment Plan for Enrolled Children with Behavioral Health Needs — In the case of an enrolled child with behavioral health care needs (as defined in §110(f)), Contractor shall comply with the requirements of subsections (b), (c) and (d).

(b) Development of Treatment Plan — Contractor shall ensure that the child's multidisciplinary team under §204 shall develop, no later than the date described in paragraph (3), a treatment plan for the child consistent with the consultation requirements of paragraph (1), the family participation requirements of paragraph (2), and the requirements to update the treatment plan under paragraph (5).

(1) Consultation — In developing a treatment plan under this subsection, the child's multidisciplinary team shall take into account:

(A) the findings of a formal or informal assessment or evaluation, if any, of the child conducted by a behavioral health provider within [ ] months prior to the effective date of the child's enrollment;

(B) any requirements (whether or not relating to health care items or services) contained in an IEP (as defined in §110(h)) or in an IFSP (as defined in §110(i)) obtained from:

(i) the child's family or caregiver; or

(ii) with the written consent of the family or caregiver, the educational agency described in §110(h) or the early intervention agency described in §110(i);

(C) the professional judgment of at least [ ] behavioral health providers (as defined in §110(b)) familiar with the child's behavioral health needs; and

(D) if available, the professional judgment of school, child protection, or juvenile justice personnel who are:

(i) knowledgeable about the child and the child's family or caregiver; and

(ii) not participating in the child's multidisciplinary team under §204(b)(6).

(2) Child and Family Participation — In the case of family or caregiver of an enrolled child that elects not to participate under §204(b)(3) as member of the multidisciplinary team that is responsible for the child, the team shall allow full participation in the development of the child's treatment plan under this subsection by:

(A) the child's family or caregiver consistent with §101(d)(1)(A); and

(B) the child unless clinically inappropriate or age-inappropriate.

(3) Date — The date described in this paragraph is the date within [ ] days of the first notification of Contractor under §201(b) by Purchaser that the child is enrolled.

(4) Access to Treatment Plan — Contractor shall ensure that each treatment plan developed under this subsection:

(A) in the case of an enrolled child with behavioral health needs (as defined in §110(f)) who is not an adolescent, is promptly made available to the child's family or caregiver (as defined in §110(g));

(B) in the case of an enrolled child with behavioral health needs who is an adolescent (as defined in §110(a)), is promptly made available to the adolescent and to the adolescent's family or caregiver;

(C) is explained to the enrolled child (and the child's family or caregiver) by the child's case manager (consistent with §105(c)(3));

(D) is incorporated into the enrolled child's medical record; and

(E) is not disclosed to any person or entity with respect to which disclosure is prohibited under:

(i) 42 C.F.R. Part 2 (pertaining to the confidentiality of data related to alcohol or substance abuse);

(ii) 42 C.F.R. §§431.300 - 431.307;

(iii) the requirements of 34 C.F.R. Part 99.31 implementing the Family and Educational Rights and Privacy Act (FERPA); and

(iv) the confidentiality protections in the Individuals with Disabilities Education Act, 34 C.F.R. §§300.560 - 300.577, and §§303.400 - 303.425.

(F) is disclosed to a person or entity that is not described in subparagraph (E) only with the prior written consent (specific to the person or entity to which the care plan is to be disclosed) of the child's family or caregiver.

Commentary: The following illustrative language would require periodic updating of the treatment plan of each enrolled child with behavioral health needs. The updates would have to be done at a frequency determined by the contracting BHO and the purchaser through negotiations. The duty on the Contractor to update periodically would expire when the enrollee is no longer a child with behavioral health needs as defined in §110(d) — i.e., is age 21 or older, or no longer has behavioral health needs.

(5) Updating of Treatment Plan — Contractor shall ensure that the treatment plan of an enrolled child with behavioral health needs (as defined in §110(f)) is:

(A) reviewed and updated:

(i) no less frequently than at least every [ ] months, by the child's multidisciplinary team under §204, with reference to:

(I) the team's assessment of the child's health and developmental status and needs;

(II) the recommendations of the child's case manager §105(c)(11); and

(III) the views of the child's family or caregiver;

(ii) within [ ] weeks of the incorporation of an inpatient discharge plan for the child under §105B; and

(iii) whenever, in the judgment of the child's multidisciplinary team, the child's behavioral health needs warrant; and

(B) incorporated into the enrolled child's medical record after each update under subparagraph (A).

Commentary: In some states, the treatment plan serves as a payment authorization specifying the items and services that do not require prior approval from Contractor's utilization control procedures. For illustrative language implementing this approach, see §108(c)(2).

The following illustrative language would require that a treatment plan identify not only the services for which the Contractor is responsible, but also the services needed by the child for which the Purchaser or the child's MCO is responsible. This should assist the child's family or caregiver in knowing which party is responsible for covering each particular item or service needed by the child.

(c) Contents of Treatment Plan — A treatment plan, developed under subsection (b), for an enrolled child with behavioral health needs (as defined in §110(f)) shall:

(1) identify the enrolled child's behavioral health needs;

(2) specify the items and services that, in the judgment of the child's multidisciplinary team under §204,are

(A) necessary to meet the enrolled child's behavioral health needs; and

(B) enumerated under §102(a)as the duty of Contractor;

(3) specify the items and services that, in the judgment of the child's multidisciplinary team under §204,are:

(A) necessary to meet the enrolled child's behavioral health needs; and

(B) enumerated under §102(b) as the duty of Purchaser or specified under the joint MCO/BHO protocol under §109(b)(4)(A)as the dutyof an MCO;

(4) provide for the furnishing of the items and services specified under paragraph (2) in a natural environment (as defined in §110(k)), whether or not the child is under an IFSP (as defined in §110(i));12

Commentary: The following illustrative language in paragraph (5) addresses those cases in which enrolled children with behavioral health needs are receiving services under an IEP or other treatment plan developed independently of Contractor. Under this language, Contractors would be required to furnish services identified in the child's IEP or other treatment plan even if the child's multidisciplinary team did not judge those services to be necessary to meeting the child's behavioral health needs, but only so long as the services are specified as covered under the agreement with the Purchaser as per §102(a). For example, if a child's IEP called for the provision of family education and support services, but the child's multidisciplinary team did not indicate that such services are necessary, the Contractor would be obligated to furnish the services if they are included in its agreement with Purchaser under §102(a). On the other hand, if a child's IEP called for the provision of ventilator or physical therapy services, the BHO would not have the duty to furnish such services because they presumably would not be included in the BHO's agreement with the Purchaser under §102(a)(such services are generally furnished by MCOs, not BHOs).

(5) specify the items and services that are:

(A) the duty of Contractor under §102(a); and

(B) required under each of the following plans (if any) that has been developed for the child:

(i) an inpatient discharge plan under §105B;

(ii) an IEP (as defined in§110(h));

(iii) an IFSP (as defined in §110(i));

(iv) a plan of care developed for the child by [drafter insert name of state child welfare agency]; or

(v) a plan of care developed for a child by [drafter insert reference to appropriate juvenile court or juvenile justice agency]; and

(6) specify the behavioral health providers (as defined in §110(b)) (whether or not participating in Contractor's provider network) through which the items and services identified under paragraphs (2), (3), and (5) are to be furnished to the enrolled child under standing referrals under subsection (d).

(d) Standing Referrals to Behavioral Health Providers Specified in Treatment Plan

(1) In Urban Areas — In the case of an enrolled child with behavioral health needs living in [drafter insert name of urban area(s) within Contractor's service area], Contractor shall provide for the visits without prior authorization under §108(c) to behavioral health providers specified in the treatment plan under subsection (c)(5), whether or not such providers participate in Contractor's provider network.

(2) In Rural Areas — In the case of an enrolled child with behavioral health needs living in [drafter insert name of rural area(s) within Contractor's service area], Contractor shall provide for the visits (whether face-to-face or via telemedicine technologies approved by Purchaser) without prior authorization under §108(c)(2) to behavioral health providers specified in the treatment plan under subsection (c)(5), whether or not such providers participate in Contractor's provider network.

Commentary: The following illustrative language addresses the relationship between Medicaid and the Individuals with Disabilities Education Act (IDEA). Under Federal Medicaid law, §1903(c) of the Social Security Act, 42 U.S.C. §1396b(c), States must pay for items and services covered under their state Medicaid plan even if the item or service is also required under a child's IEP or IFSP: "Nothing in this title shall be construed as prohibiting or restricting, or as authorizing the Secretary [of HHS] to prohibit or restrict, payment [for services covered under Medicaid to a child with behavioral health needs] because such services are included in the child's [IEP or IFSP]." HCFA has issued a clarification of its policy vis-à-vis state claiming for school health-related transportation services for children with IEPs under the IDEA in (1) a Letter to State Medicaid Directors (May 21, 1999), www.hcfa.gov/medicaid/smd52199.htm and (2) a draft Guide on Medicaid School-Based Administrative Claiming (February 2000), www.hcfa.gov. There has been some critical commentary on the draft Guide; for example, the Department of Education has recommended that HCFA revise the draft because, in its view, the draft "could be harmful by limiting access by school districts to Medicaid reimbursement for some activities that should be claimable...." HCFA recently testified before the Senate Finance Committee that "[o]nce we have reviewed the feedback, we expect to make changes before issuing a final Guide." Testimony of Tim Westmoreland, Director, HCFA Center for Medicaid and State Operations (April 5, 2000), www.senate.gov/~finance/4-5hcfa.htm.

(e) Coordination of Treatment Plans with IFSPs or IEPs — In the case of an enrolled child with behavioral health needs (as defined in §110(f)) who is receiving services under an IFSP (as defined in §110(i)) or an IEP (as defined in §110(h)) (whether or not at the time of enrollment), Contractor shall:

(1) furnish, or arrange for the furnishing of, items and services that are:

(A) enumerated under §102(a):

(B)covered under §108; and

(C) required under the child's IFSP or the IEP;

(2) ensure that the child's multidisciplinary team under §204 incorporates the items and services described in paragraph (1) into the child's treatment plan developed under subsection (b);

(3) furnish, or arrange for the furnishing of, the items and services described in paragraph (1) through providers selected by the child's multidisciplinary team that meet the requirements of the Individuals with Disabilities Education Act, 20 U.S.C. §§1400 et seq. (whether or not such providers are identified in, or furnish services to the child under, the IFSP or IEP);

(4) ensure that the child's care coordinator carries out the requirements of §105(c)(6); and

Commentary: The following illustrative language would clarify that the "natural environment" and "least restrictive environment" requirements of federal law apply to Contractors in the delivery of services through their own provider networks. In some states, early intervention services are provided by free-standing, state-certified agencies that do not participate in MCO provider networks. The following language would not impose any obligations upon Contractors with respect to services furnished to enrolled children by such free-standing, out-of-network agencies.

(5) ensure that:

(A) in the case of a child receiving services under an IFSP, the child, consistent with the Individuals with Disabilities Education Act, 20 U.S.C. §§1435 - 1436, 34 C.F.R. §303.344(d)(1), shall receive items and services described in paragraph (1) in natural environments (as defined in §110(k)); and

(B) in the case of a child receiving services under an IEP, whether or not in an educational setting, the child shall receive items and services (to the extent that Contractor furnishes such items and services under paragraph (1)) consistent with the least restrictive environment requirement of the Individuals with Disabilities Education Act, 20 U.S.C. §1412(a)(5), 34 C.F.R. §300.550(b) (64 Fed Reg 12547 (March 12, 1999)).

§105B. Inpatient Discharge Plan

Commentary: The Surgeon General recently noted: "Under public managed care, hospitalization for mental disorders is being substantially cut, with youths being discharged from the hospital before adequate personal and/or community safety plans can be instituted. Child welfare and juvenile justice agencies have been compelled to create and pay for services to support those children who are no longer kept in hospitals. Thus, while Medicaid's mental health costs may be decreasing in such cases, there may be a substantial cost increase to the other agencies involved, resulting in little, if any, overall cost saving." DHHS, Mental Health: A Report of the Surgeon General (1999), p. 185.

The following illustrative language relating to inpatient discharge plans is based on a provision in a directive agreed to by the State of Tennessee and Medicaid beneficiaries in litigation relating to access to EPSDT services by children with behavioral health needs. Under the court-approved language, the State has agreed that it and its BHO contractors shall:

"provide for appropriate continuity of care and services following psychiatric or chemical dependency inpatient facility services or residential treatment as specified in a realistic discharge plan in which the patient and his family or other caregivers, clinicians, and social worker have participated. This discharge plan shall include, but not be limited to, an outpatient visit, which must be scheduled within a clinically appropriate time period before discharge which assures access to proper physician/medication follow-up and other medically necessary services."

Consent Decree for Medicaid-Based Early and Periodic Screening, Diagnosis, and Treatment Services, John B. v. Menke, Civil Action No. 3-98 0168 (M.D. Tenn., February, 1998), paragraph 71, http://www.ichp.edu/managed/materials/902962074.html

In addition to the requirement for an inpatient discharge plan, the State of Tennessee and its BHO contractors are also subject to a separate notice requirement in the event that inpatient psychiatric hospital services are being terminated:

"If the beneficiary has an ongoing illness or condition requiring medical care and the [BHO] or its network provider is under a duty to provide a discharge plan or otherwise arrange for the continuation of treatment following the proposed adverse action, the notice must be given and shall include a readable explanation of the discharge plan, if any, and a description of the specific arrangements in place to provide for the beneficiary's continuing care."

Revised Consent Decree Governing TennCare Appeals, Grier v. Wadley, C.A. No. 79-3107 (M.D. Tenn., Oct. 26, 1999), paragraph C.1.c., available from Tennessee Justice Center (615-255-0331).13

Because the discharge plan would be linked to a particular inpatient episode, it by definition would not be as comprehensive as the treatment plan described in §105A. Under the illustrative language below, Contractor would have to ensure the inclusion of any discharge plan in the child's broader treatment plan in order to promote coordination of care.

(a) Duty — In the case of an enrolled child with behavioral health needs (as defined in §110(f)) who is admitted to a psychiatric or chemical dependency inpatient facility or a residential treatment facility, Contractor shall ensure that:

(1) the child is not transferred or discharged from the facility unless the treating behavioral health provider (as defined in §110(b)) certifies and documents in the child's medical record that the discharge criteria under subsection (c) are satisfied;

(2) no less than [ ] days prior to the child's discharge, the child's multidisciplinary team under §204, in consultation with the treating behavioral health provider, has:

(A) developed a written discharge plan for the child which meets the requirements of subsection (b); and

(B) made a copy and an explanation of the plan available to the child's family or caregiver; and

(3) the child's case manager under §105(c) assumes responsibility for the implementation of the written discharge plan.

(b) Content of Written Discharge Plan A written discharge plan shall:

(1) set forth the reasons for which the ch