Approve and authorize the Chair to sign Intergovernmental Agreements 22-20147 and 23-30126 with the California Department of Health Care Services for the period of July 1, 2023 through December 31, 2026 for the transfer of public funds to provide support for the nonfederal share of Medi-Cal payments for Specialty Mental Health and Drug Medi-Cal Delivery System services. (No general fund impact) (Sullivan)

Approve and authorize the Chair to sign Intergovernmental Agreements 22-20147 and 23-30126 with the California Department of Health Care Services for the period of July 1, 2023 through December 31, 2026 for the transfer of public funds to provide support for the nonfederal share of Medi-Cal payments for Specialty Mental Health and Drug Medi-Cal Delivery System services.

The Department of Health Care Services (DHCS) has implemented Behavioral Health Payment Reform based on the requirement of the California Advancing and Innovating Medi-Cal (CalAIM) Act. As a component of Behavioral Health Payment Reform, DHCS was required to design and implement an Intergovernmental Transfer (IGT) -based payment methodology to replace the existing certified public expenditure-based reimbursement methodology for Medi-Cal Specialty Mental Health Services (SMHS), Substance Use Disorder Treatment Services, Expanded Substance Use Disorder Treatment Services, and for costs incurred by counties to administer those benefits.

An IGT is a transfer of funds from a public agency to the Medicaid Single State Agency (SSA) that the SSA may expend as the nonfederal share in claiming Federal Financial Participation for Medicaid payments. In the context of CalAIM, Behavioral Health Payment Reform, an IGT is a transfer of funds from a county (the public agency) to DHCS (the Medicaid SSA) to be used as the county portion of the nonfederal share of payments to the county for Medi-Cal covered Behavioral Health Services.

Yolo County will have IGT accounts that are pre-funded with an average three months of historical actual claims as determined by DHCS. The pre-funded amounts will be $858,543 for SMHS and $62,096 for Drug Medi-Cal Organized Delivery System (DMC-ODS). DHCS will draw down the County's share of actual claims submitted for payment during the month. The County will then replenish the IGT funds to keep a three-month average balance on hand.

HHSA is requesting that the Board of Supervisors approve and authorize the Chair to sign these Agreements (Att. A. SMHS Agreement and Att. B. DMC-ODS Agreement) to receive IGT funds to assist in funding SMHS and DMC-ODS services to eligible members of the community.

County Counsel has approved these Agreements as to form.

Not required for revenue agreements.