SLS 10RS-3838 REENGROSSED
Page 1 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 806 (Substitute of Senate Bill No. 766 by Senator McPherson)
BY SENATOR MCPHERSON
HEALTH CARE. Provides to develop a reimbursement methodology for community mental
health centers. (8/15/10)
AN ACT1
To enact Part II of Chapter 58 of Title 46 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 46:2745 and 2746, relative to reimbursement methodology for3
mental health services; to direct the Department of Health and Hospitals to establish4
a reimbursement methodology for community mental health centers; to direct the5
department to promulgate rules and regulations relative to the reimbursement6
methodology; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Part II of Chapter 58 of Title 46 of the Louisiana Revised Statutes of9
1950, comprised of R.S. 46:2745 and 2746, is hereby enacted to read as follows:10
PART II. REIMBURSEMENT METHODOLOGY FOR 11
COMMUNITY MENTAL HEALTH CENTERS12
§2745. Legislative findings and purpose13
A.(1) It is in the best interest of the state that behavioral health services14
for all Louisiana residents should be based on the following guiding principles:15
(a) Recipients shall have freedom of choice of provider for services.16
(b) Timely and easy access to covered services.17 SB NO. 806
SLS 10RS-3838 REENGROSSED
Page 2 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(c) Behavioral health recipient and family driven services.1
(d) Locally-delivered care and services, which minimize the need for out2
of home placement and residential placement.3
(e) Effective innovation and use of clinical outcomes, evidence-based and4
best practices.5
(f) Collaboration with the greater community.6
(g) Cultural competency.7
(h) Recruitment of providers trained and evaluated based on established8
credentialing criteria that include qualifications and related clinical,9
administrative, and cultural competencies.10
(2) In order for the department to meet the goals set forth above, the11
Department of Health and Hospitals is currently implementing the process by12
which all publically funded behavioral health services be organized in such a13
way that screening, assessment, treatment planning and treatment are provided14
in a recovery-oriented fashion that utilizes evidence-based and/or best practice15
methodologies in order to improve outcomes and quality of life for individuals16
served, while reducing the need for more restrictive services and out of home17
placements. All services and programs should be evaluated using standardized18
procedures and instruments to provide reliable and valid data about service19
outcome. Further, the department should provide administrative service20
oversight to establish a comprehensive, well-coordinated, measured approach21
to the management of publically-funded behavioral health services within the22
state.23
(3) The Patient Protection and Affordable Care Act, hereinafter referred24
to as the "Act", provides that beginning April 1, 2011, in order to meet the25
definition of a community mental health center, forty percent of the services26
provided by such centers must be provided to non-Medicare recipients.27
Currently, Louisiana's community mental health centers serve a Medicare28
insured clientele that receives approximately ninety percent of their total29 SB NO. 806
SLS 10RS-3838 REENGROSSED
Page 3 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
services and generates in excess of eighty-five million dollars for our state's1
economy. If Louisiana's community mental health centers cannot meet the forty2
percent threshold mandated by the Act, that funding could be substantially3
reduced or entirely lost.4
(4) The Act also expands Medicaid eligibility income limits to one5
hundred and thirty-three percent of the federal poverty limit beginning in 2014.6
The Department of Health and Hospitals estimates that may add as many as six7
hundred thousand Louisiana residents to the Medicaid program, meaning that8
almost forty percent of our population will be insured by Medicaid, making it9
virtually impossible for Louisiana-based community mental health centers to10
meet the payor mix threshold mandated by the Act if they are not permitted to11
provide services to our Medicaid population.12
(5) Louisiana currently has fifty-seven certified Community Mental13
Health Centers. Due to the number of Community Mental Health Centers, the14
state seeks to continue offering these mental health services at the highest15
standards, but in a prudent manner.16
(6) The Department of Health and Hospitals has a mental health17
rehabilitation program which Community Mental Health Centers currently18
may enroll and participate in to meet the mental health services needs in the19
state.20
B. The purpose of this part is to develop criteria and a reimbursement21
methodology for Community Mental Health Centers.22
§2746. Reimbursement methodology; rules and regulations23
A. The Department of Health and Hospitals shall obtain input from24
mental health providers and mental health advocates to develop a25
reimbursement methodology, which methodology shall be subject to approval26
by the Centers for Medicare and Medicaid Services, which would allow27
freestanding Community Mental Health Centers to obtain reimbursement for28
treatment of persons who are Medicaid eligible. Such methodology shall29 SB NO. 806
SLS 10RS-3838 REENGROSSED
Page 4 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
require that Community Mental Health Centers meet certification standards1
required by the department and be nationally accredited as required by the2
department.3
B. No later than January 20, 2011, the department shall issue a notice4
of intent to promulgate rules and regulations, in accordance with the5
Administrative Procedure Act, to provide for a reimbursement methodology for6
freestanding Community Mental Health Centers and to provide for certification7
standards as required by the department.8
C. Subject to appropriation by the legislature, the Department of Health9
and Hospitals shall provide for the inclusion of qualified Community Mental10
Health Centers as providers for the purposes of Medicaid reimbursement.11
Section 2. The Louisiana State Law Institute is hereby directed to place the12
provisions of R.S. 46: 2741 through 2744 in their entirety within Part I of Chapter 58 of Title13
46 of the Louisiana Revised Statutes of 1950, and to designate Chapter 58 as14
"Reimbursement Methodology" and Part I as "Reimbursement Methodology of Nursing15
Homes".16
The original instrument was prepared by Greg Waddell. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Dawn Romero Watson.
DIGEST
McPherson (SB 806)
Proposed law, regarding community mental health centers, requires the Dept. of Health and
Hospitals (DHH) to obtain input from mental health providers and mental health advocates
to develop a reimbursement methodology which allows freestanding Community Mental
Health Centers to obtain reimbursement for treatment of person who are Medicaid eligible.
Requires that the reimbursement methodology require that Community Mental Health
Centers meet certification standards required by DHH and be nationally accredited as
required by DHH. Provides that such methodology shall be subject to approval by the
Centers of Medicare and Medicaid Services (CMMS).
Proposed law provides that no later than January 20, 2011, DHH shall issue a notice of intent
to promulgate rules and regulations in accordance with the Administrative Procedure Act
regarding the proposed law reimbursement methodology.
Proposed law provides that, subject to appropriation by the legislature, DHH shall provide
for the inclusion of qualified Community Mental Health Centers as providers for the
purposes of Medicaid reimbursement. SB NO. 806
SLS 10RS-3838 REENGROSSED
Page 5 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Directs the Louisiana Law Institute to re-designate present law regarding reimbursement
methodology of nursing homes as Part 1 of Chapter 58 of Title 46 of the Louisiana Revised
Statutes of 1950.
Effective August 15, 2010.
(Adds R.S. 46:2745 - 2746)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill.
1. Changes legislative findings and purpose.
2. Removes "community mental health clinics" from proposed law.
3. Changes deadline for rules notice from January 1, 2010, to January 20, 2011.
4. Adds appropriation by the legislature as qualification for DHH providing for
the inclusion of qualified Community Mental Health Centers as providers for
the purposes of Medicaid reimbursement.