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HomeMy WebLinkAbout05 - Medi -Cal Managed Care Rate Range Intergovernmental Transfer Program to Increase Reimbursement for Ambulance Transport ServicesQ SEW Pp�T CITY OF �m z NEWPORT BEACH c�<,FORN'P City Council Staff Report July 9, 2019 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Chip Duncan, Fire Chief - 949-644-3101, cduncan@nbfd.net PREPARED BY: Angela Crespi, Administrative Manager, acrespi(cr).nbfd.net PHONE: 949-644-3352 TITLE: Resolution No. 2019-67: Participation in the Medi -Cal Managed Care Rate Range Intergovernmental Transfer Program to Increase Reimbursement for Ambulance Transport Services ABSTRACT: The California Department of Health Care Services (DHCS) offers local units of government that provide health care services the opportunity to secure additional Medi - Cal revenues by participating in a voluntary Intergovernmental Transfer (IGT) program with their local Medi -Cal managed care plan. CalOptima is a County Organized Health System (COHS) created by the Orange County Board of Supervisors in 1993 and serves as the Medi -Cal managed care plan for Orange County. In 2016, CalOptima began allowing Fire Departments that provide ambulance transport services to participate in the Medi -Cal Managed Care Rate Range IGT. To date, the City of Newport Beach has successfully participated in four transactions to secure a total of $603,108 in increased revenue. Continued participation in the IGT will allow the City to receive additional Federal funds to offset previously unreimbursed costs for providing transport services to Medi -Cal plan members during each fiscal year. Participation in the IGT program is on a year -by - year basis and is currently available for services provided in Fiscal Year 2018-19. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2019-67, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the Mayor and City Manager, or Designees, to Execute Agreements and Amendments with the Department of Health Care Services (DHCS) and CalOptima to Participate in the Fiscal Year 2018-2019 Medi -Cal Rate Range Intergovernmental Transfer (IGT) Program; and c) Approve Budget Amendment No. 20-002CC increasing revenues estimates and expenditure appropriations related to the Medi -Cal IGT Program. Additional revenues are estimated at $643,254 in account number 01040404-431246 (Medi -Cal IGT Program) and increased expenditure appropriations are estimated at $321,768 in expenditure account number 01040404-821008 (Medi -Cal IGT Program). 5-1 Resolution No. 2019-67: Participation in the Medi -Cal Managed Care Rate Range Intergovernmental Transfer Program to Increase Reimbursement for Ambulance Transport Services July 9, 2019 Page 2 FUNDING REQUIREMENTS: To participate as a funding entity, the City must transfer local funds up to a maximum total amount of $268,140 to DHCS through an Intergovernmental Transfer (IGT) along with a twenty percent assessment fee of $53,628 for administering such Intergovernmental Transfer. DHCS will then use the local funds provided to draw down additional Federal funds to access the highest allowable Medi -Cal reimbursement rate from the Federal Government. The City expects to receive a 100 percent reimbursement from CalOptima, including the twenty percent assessment fee, as well as $321,486 of new revenue from the IGT -funded rate increase. If approved, the Budget Amendment increases revenue estimates by $643,254 from DHCS distributed by CalOptima and increases expenditure appropriations of $321,768 for a net increase to the General Fund of $321,486. DISCUSSION: The City's costs associated with delivering Emergency Medical Services (EMS) are recovered through user fees. However, the nature of how EMS costs are recovered is unique to the healthcare industry. The City has little control over the actual amount of revenue collected due to adjustments made by various payer sources. Based on prior fiscal year data, it is estimated that the Newport Beach Fire Department will have provided Medi -Cal Services to 434 CalOptima plan members in FY 2018-19. The total cost of providing these services is estimated at $677,908 and the actual payments received is estimated at $55,658, resulting in unreimbursed costs of $622,250. Participation in the Medi -Cal Rate Range IGT provides the City an opportunity to recover up to $321,486 of these unreimbursed costs. The Medi -Cal Rate Range IGT is implemented through the execution of two (2) agreements: (1) An agreement with DHCS regarding the City's transfer of the FY 2018-19 IGT amount of $268,140 and twenty percent IGT assessment fee of $53,628 (Attachment B); (2) An agreement with CalOptima regarding the terms upon which the City is paid its previously unreimbursed costs for providing transport services to Medi -Cal plan members plus the additional federal funds made available as a result of participation in the IGT program (Attachment C). To participate in the IGT program for FY 2018-19, the two agreements attached hereto must be executed and returned to DHCS by July 31, 2019. While there is no contractual guarantee of the City receiving all of its initial investment via payments from CalOptima, it is the City's understanding that all other local governments in the State of California that have participated in the IGT program in prior years have received all of their initial investment plus the IGT -funded rate increase. Additionally, our own history with the program has been successful as shown in the following table: 5-2 Resolution No. 2019-67: Participation in the Medi -Cal Managed Care Rate Range Intergovernmental Transfer Program to Increase Reimbursement for Ambulance Transport Services July 9, 2019 Page 3 Participation Fiscal Year Funds Transferred Funds Returned Revenue Increase Approx. Rate of Return FY 2014-15 $266,191 $356,554 $90,363 $1.34 per $1 FY 2015-16 $192,616 $290,897 $98,281 $1.51 per $1 FY 2016-17 $267,005 $383,471 $116,466 $1.44 per $1 FY 2017-18 $273,083 $571,081 $297,998 $2.09 per $1 Total $98,895 $1,602,003 $603,108 * In FY 2017-18, the Federal match rate was expanded to include the Optional Medicaid Expansion population resulting in a higher rate of return than previous years. Once the required agreements are in place, the City will receive a funds transfer request from DHCS. The timeline for the City to receive the original contribution, initial assessment fee, and the leveraged additional federal funds, is approximately 60 days from the transfer. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2019-67 Attachment B — Intergovernmental Agreement Regarding Transfer of Public Funds with DHCS Attachment C — Health Plan -Provider Agreement, Intergovernmental Transfer Rate Range Program Agreement with CalOptima Attachment D — Budget Amendment 5-3 ATTACHMENT A RESOLUTION NO. 2019- 67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE MAYOR AND CITY MANAGER, OR DESIGNEES, TO EXECUTE AGREEMENTS AND AMENDMENTS WITH THE DEPARTMENT OF HEALTH CARE SERVICES (DHCS) AND CALOPTIMA TO PARTICIPATE IN THE FISCAL YEAR 2018-2019 MEDI-CAL RATE RANGE INTERGOVERNMENTAL TRANSFER (IGT) PROGRAM WHEREAS, since 2006, the California Department of Health Care Services ("DHCS") has offered local governments that provide health care the opportunity to secure additional Medi—Cal revenues by participating in a voluntary Intergovernmental Transfer ("IGT") Program with their local Medi -Cal managed care plan, WHEREAS, CalOptima is a County Organized Health System ("COHS") created by the Orange County Board of Supervisors to serve as the local Medi -Cal managed care plan for Orange County; WHEREAS, CalOptima contracts with the State of California to administer additional Medi -Cal revenues to qualified public entities to offset previously unreimbursed costs for serving Medi -Cal plan members; WHEREAS, the City of Newport Beach is a public entity that receives payment from CalOptima for the provision of emergency medical transport services to CalOptima members on a fee-for-service basis and has unreimbursed costs associated with providing these services; WHEREAS, participation in the IGT Program with CalOptima represents an opportunity to recover previously unreimbursed costs in an effort to reach full cost recovery for Emergency Medical Services in accordance with City of Newport Beach Municipal Code Chapter 3.36; and WHEREAS, the City of Newport Beach has participated in four (4) IGT transactions with transfers totaling $998,895 to draw down an additional $603,108 in previously unreimbursed costs. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows - M", Resolution No. 2019 - Page 2 of 3 Section 1: The City Council does hereby authorize the Mayor, or designee, to execute (1) an "Intergovernmental Agreement Regarding Transfer of Public Funds" with DHCS regarding the City's transfer of the FY2018-2019 IGT amount ($268,140) and twenty percent (20%) IGT assessment fee ($53,628) and (2) a "Health Plan -Provider Agreement Intergovernmental Transfer Rate Range Program" agreement with CalOptima regarding the terms upon which the City is paid its previously unreimbursed costs for providing transport services to Medi -Cal plan members plus the additional federal funds made available as a result of participation in the IGT program. Section 2: The City Council does hereby authorize the City Manager, or designee, to execute any amendments to the above referenced (1) "Intergovernmental Agreement Regarding Transfer of Public Funds" and (2) "Health Plan -Provider Agreement Intergovernmental Transfer Rate Range Program" agreement with respect to the term of the agreements and any additional funds or transfer fees, so long as such amendments do not extend the term of such agreements beyond five additional years of their respective termination dates, and any additional funds or transfer fees provided by the City do not exceed $120,000. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 5-5 Resolution No. 2019 - Page 3 of 3 Section G: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9th day of July, 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney 5-6 1 Intergovernmental Agreement Regarding Transfer of Public Funds with DHCS 5-7 CONTRACT #18-95606 INTERGOVERNMENTAL AGREEMENT REGARDING TRANSFER OF PUBLIC FUNDS This Agreement is entered into between the CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES ("DHCS") and the CITY OF NEWPORT BEACH, a California municipal corporation and charter city operating through its Fire Department, (GOVERNMENTAL FUNDING ENTITY) with respect to the matters set forth below. The parties agree as follows: AGREEMENT 1. Transfer of Public Funds 1.1 The GOVERNMENTAL FUNDING ENTITY agrees to make a transfer of funds to DHCS pursuant to sections 14164 and 14301.4 of the Welfare and Institutions Code. The amount transferred shall be based on the sum of the applicable rate category per member per month (PMPM) contribution increments multiplied by member months, as reflected in Exhibit 1. The GOVERNMENTAL FUNDING ENTITY agrees to initially transfer amounts that are calculated using the Estimated Member Months in Exhibit 1, which will be reconciled to actual enrollment for the service period of July 1, 2018 through June 30, 2019 in accordance with Sub - Section 1.3 of this Agreement. The funds transferred shall be used as described in Sub -Section 2.2 of this Agreement. The funds shall be transferred in accordance with the terms and conditions, including schedule and amount, established by DHCS. 1.2 The GOVERNMENTAL FUNDING ENTITY shall certify that the funds transferred qualify for Federal Financial Participation pursuant to 42 C.F.R. part 433, subpart B, and are not derived from impermissible sources such as recycled Medicaid payments, Federal Template Version- 7/2018 WK CONTRACT #18-95606 money excluded from use as State match, impermissible taxes, and non -bona fide provider - related donations. Impermissible sources do not include patient care or other revenue received from programs such as Medicare or Medicaid to the extent that the program revenue is not obligated to the State as the source of funding. 1.3 DHCS shall reconcile the "Estimated Member Months," in Exhibit 1, to actual enrollment in HEALTH PLAN(S) for the service period of July 1, 2018 through June 30, 2019 using actual enrollment figures taken from DHCS records. Enrollment reconciliation will occur on an ongoing basis as updated enrollment figures become available. Actual enrollment figures will be considered final two years after June 30, 2019. If this reconciliation results in an increase to the total amount necessary to fund the nonfederal share of the payments described in Sub -Section 2.2, the GOVERNMENTAL FUNDING ENTITY agrees to transfer any additional funds necessary to cover the difference. If this reconciliation results in a decrease to the total amount necessary to fund the nonfederal share of the payments described in Sub -Section 2.2, DHCS agrees to return the unexpended funds to the GOVERNMENTAL FUNDING ENTITY. If DHCS and the GOVERNMENTAL FUNDING ENTITY mutually agree, amounts due to or owed by the GOVERNMENTAL FUNDING ENTITY may be offset against future transfers. 2. Acceptance and Use of Transferred Funds 2.1 DHCS shall exercise its authority under section 14164 of the Welfare and Institutions Code to accept funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to this Agreement as IGTs, to use for the purpose set forth in Sub -Section 2.2. 2.2 The funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to Section 1 and Exhibit 1 of this Agreement shall be used to fund the non-federal share of Medi -Cal Managed Care actuarially sound capitation rates described in section 14-301.4(b)(4) 2 Template Version- 7/2018 5-9 CONTRACT #18-95606 of the Welfare and Institutions Code as reflected in the contribution PMPM and rate categories reflected in Exhibit 1. The funds transferred shall be paid, together with the related Federal Financial Participation, by DHCS to HEALTH PLAN(S) as part of HEALTH PLAN(S)' capitation rates for the service period of July 1, 2018 through June 30, 2019, in accordance with section 14301.4 of the Welfare and Institutions Code. 2.3 DHCS shall seek Federal Financial Participation for the capitation rates specified in Sub -Section 2.2 to the full extent permitted by federal law. 2.4 The parties acknowledge that DHCS will obtain any necessary approvals from the Centers for Medicare and Medicaid Services. 2.5 DHCS shall not direct HEALTH PLAN(S)' expenditure of the payments received pursuant to Sub -Section 2.2. 3. Assessment Fee 3.1 DHCS shall exercise its authority under section 14301.4 of the Welfare and Institutions Code to assess a 20 percent fee related to the amounts transferred pursuant to Section 1 of this Agreement, except as provided in Sub -Section 3.2. GOVERNMENTAL FUNDING ENTITY agrees to pay the full amount of that assessment in addition to the funds transferred pursuant to Section 1 of this Agreement. 3.2 The 20 -percent assessment fee shall not be applied to any portion of funds transferred pursuant to Section 1 that are exempt in accordance with sections 14301.4(d) or 14301.5(b)(4) of the Welfare and Institutions Code. DHCS shall have sole discretion to determine the amount of the funds transferred pursuant to Section 1 that will not be subject to a 20 percent fee. DHCS has determined that $0.00 of the transfer amounts will not be assessed a 20 percent fee, subject to Sub -Section 3.3. 9 Template Version- 7/2018 5-10 CONTRACT #18-95606 3.3 The 20 -percent assessment fee pursuant to this Agreement is non- refundable and shall be wired to DHCS separately from, and simultaneous to, the transfer amounts made under Section 1 of this Agreement. If, at the time of the reconciliation performed pursuant to Sub -Section 1.3 of this Agreement, there is a change in the amount transferred that is subject to the 20 -percent assessment in accordance with Sub -Section 3. 1, then a proportional adjustment to the assessment fee will be made. 4. Amendments 4.1 No amendment or modification to this Agreement shall be binding on either party unless made in writing and executed by both parties. 4.2 The parties shall negotiate in good faith to amend this Agreement as necessary and appropriate to implement the requirements set forth in Section 2 of this Agreement. Notices. Any and all notices required, permitted or desired to be given hereunder by one party to the other shall be in writing and shall be delivered to the other party personally or by United States First Class, Certified or Registered mail with postage prepaid, addressed to the other party at the address set forth below: To the GOVERNMENTAL FUNDING ENTITY: Administrative Manager City of Newport Beach Fire Department 100 Civic Center Drive Newport Beach, CA 92660 acresniambfd.net With copies to: Template Version- 7/2018 5-11 CONTRACT #18-95606 To DHCS: City Attorney City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 smissirligg@,neMortbeachca ggv Sandra Dixon California Department of Health Care Services Capitated Rates Development Division 1501 Capitol Ave., Suite 71-4002 MS 4413 Sacramento, CA 95814 Sandra.Dixongdhcs. ca. gov 6. Other Provisions 6.1 This Agreement contains the entire Agreement between the parties with respect to the Medi -Cal payments described in Sub -Section 2.2 of this Agreement that are funded by the GOVERNMENTAL FUNDING ENTITY, and supersedes any previous or contemporaneous oral or written proposals, statements, discussions, negotiations or other agreements between the GOVERNMENTAL FUNDING ENTITY and DHCS relating to the subject matter of this Agreement. This Agreement is not, however, intended to be the sole agreement between the parties on matters relating to the funding and administration of the Medi- cal program. This Agreement shall not modify the terms of any other agreement, existing or entered into in the future, between the parties. 6.2 The non -enforcement or other waiver of any provision of this Agreement shall not be construed as a continuing waiver or as a waiver of any other provision of this Agreement. 5 Template Version- 7/2018 5-12 CONTRACT #18-95606 6.3 Sections 2 and 3 of this Agreement shall survive the expiration or termination of this Agreement. 6.4 Nothing in this Agreement is intended to confer any rights or remedies on any third party, including, without limitation, any provider(s) or groups of providers, or any right to medical services for any individual(s) or groups of individuals. Accordingly, there shall be no third party beneficiary of this Agreement. 6.5 Time is of the essence in this Agreement. 6.6 Each party hereby represents that the person(s) executing this Agreement on its behalf is duly authorized to do so. 7. State Authority. Except as expressly provided herein, nothing in this Agreement shall be construed to limit, restrict, or modify the DHCS' powers, authorities, and duties under Federal and State law and regulations. 8. Approval. This Agreement is of no force and effect until signed by the parties. 9. Term. This Agreement shall be effective as of July 1, 2018 and shall expire as of December 31, 2021 unless terminated earlier by mutual agreement of the parties. Template Version- 7/2018 0 5-13 CONTRACT #18-95606 SIGNATURES IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of the last signature below. THE CITY OF NEWPORT BEACH: .0 Diane B. Dixon, Mayor Date: THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES: Date: Jennifer Lopez, Division Chief, Capitated Rates Development Division Attest: Leilani I. Brown, MMC, City Clerk Date: Template Version- 7/2018 APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE a+ By: Aaron C. Harp, rify Attome 7 5-14 CONTRACT #18-95606 Exhibit 1 Funding Entity: Health Plan: Rating Region: City of Newport Beach CalOptima _ Orange Rate Category Contribution PMPM Estimated Member Months Estimated Contribution (Non Federal Share) Child - non MCHIP $ 0.02 2,517,705 $ 50,354 Adult - non MCHIP $ 0.06 1,126,289 $ 67,577 Adult - MCHIP $ 0.02 40,055 $ 801 SPD $ 0.15 482,490 $ 72,374 SPD/Full-Dual $ 0.04 26,675 $ 1,067 BCCTP $ 0.23 7,396 $ 1,701 LTC $ 1.36 14,780 $ 20,101 LTC/Fa-Dual $ 0.70 36,930 $ 25,851 Optional Expansion $ 0.01 2,831,403 $ 28,314 Estimated Total 7,083,723 $ 268,140 Template Version- 7/2018 5-15 Health Plan -Provider Agreement Intergovernmental Transfer Rate Range Program Agreement 5-16 HEALTH PLAN -PROVIDER AGREEMENT INTERGOVERNMENTAL TRANSFER RATE RANGE PROGRAM AGREEMENT This Agreement is made this day of , 2019, by and between CALOPTIMA, a California public agency hereinafter referred to as "PLAN", and the City of Newport Beach, a California municipal corporation and charter city operating through its Fire Department, hereinafter referred to as "PROVIDER". RECITALS: WHEREAS, PLAN is a public agency formed pursuant to California Welfare and Institutions Code Section 14087.54 and Orange County Ordinance No. 3896 as amended by Ordinance Nos. 00-8, 05-008, 06-012, 09-001, 11-013, 14-002 and 16-001, and is party to a Medi -Cal managed care contract with DHCS, entered into pursuant to Welfare and Institutions Code Section 14087.3, under which PLAN arranges and pays for the provision of covered Medi - Cal health care services to eligible Medi -Cal members residing in Orange County; WHEREAS, PROVIDER is a public healthcare provider of emergency ambulance transport services, which is a covered Medi -Cal health care service, to persons enrolled with Medi -Cal Managed Care Health Plan Providers, including PLAN; WHEREAS, PLAN and PROVIDER desire to enter into this Agreement to provide for Medi -Cal managed care capitation rate increases to PLAN as a result of intergovernmental transfers ("IGTs") from City of Newport Beach (GOVERNMENTAL FUNDING ENTITY) to the California Department of Health Care Services ("State DHCS") to maintain the availability of Medi -Cal health care services to Medi -Cal beneficiaries. NOW, THEREFORE, PLAN and PROVIDER hereby agree as follows: IGT MEDI-CAL MANAGED CARE CAPITATION RATE RANGE INCREASES 1. IGT Capitation Rate Range Increases to PLAN A. Payment Should PLAN receive any Medi -Cal managed care capitation rate increases from State DHCS where the nonfederal share is funded by the GOVERNMENTAL FUNDING ENTITY specifically pursuant to the provisions of the Intergovernmental Agreement Regarding Transfer of Public Funds, #18-95606 ("Intergovernmental Agreement") effective for the period of July 1, 2018 through June 30, 2019 for Intergovernmental Transfer Medi -Cal Managed Care Rate Range Increases ("IGT MMCRRIs"), PLAN shall pay to' PROVIDER the amount of the IGT MMCRRIs received from State DHCS, in accordance with paragraph LE below regarding the form and timing of Local Medi -Cal Managed Care Rate Range ("LMMCRR") IGT Payments. LMMCRR IGT Payments paid to PROVIDER shall not replace or supplant any other amounts paid or payable to PROVIDER by PLAN. For purposes of this Agreement, the phrase 5-17 "GOVERNMENTAL FUNDING ENTITY" shall have the same meaning as in the Intergovernmental Agreement. B. Health Plan Retention (1) a. PLAN shall retain 33.32 percent, from the Medi -Cal managed care rate increases paid to PLAN by DHCS as described in this Agreement prior to disbursing LMMCRR IGT Payments to PROVIDER. The retained funds will be expended by PLAN for Covered Services under PLAN's contract with DHCS for Medi -Cal, in either the State fiscal year received, or in subsequent State fiscal years, as appropriated by the CalOptima Board of Directors. Each provider's share of retained amounts shall be calculated based on the provider's proportionate share of the LMMCRR IGT payment made by PLAN in Orange County. b. The amounts referenced in this Agreement are estimates. The parties understand and agree that the total amount of the Medi -Cal managed care capitation rate increases paid by DHCS to PLAN may fluctuate as a result of enrollment. The parties further understand and agree that any such fluctuations will likewise affect the amount to be retained by the PLAN and the amount payable to PROVIDER by the same percentage as the variance in the capitation rate increases, if any. (2) PLAN will not retain any other portion of the IGT MMCRRIs received from the State DHCS other than those mentioned above. C. Conditions for Receiving Local Medi -Cal Managed Care Rate Range IGT Payments As a condition for receiving LMMCRR IGT Payments, PROVIDER shall, as of the date the particular LMMCRR IGT Payment is due: (1) continue to provide emergency transport services to PLAN Members promptly and in a manner which ensures access to care consistent with PROVIDER's regular business practices for providing such services; and (2) not discriminate against PLAN Members or in any way impose limitations on the acceptance of PLAN Members for care or treatment that are not imposed on other patients of PROVIDER. WN D. Schedule and Notice of Transfer of Non -Federal Funds 1. PROVIDER shall provide PLAN with a copy of the schedule regarding the transfer of funds to State DHCS referred to in the Intergovernmental Transfer Agreement within fifteen (15) calendar days of establishing such schedule with State DHCS. Additionally, PROVIDER shall notify PLAN, in writing, no less than seven (7) calendar days prior to any changes to an existing schedule, including but not limited to, changes to the amounts specified therein. 2. PROVIDER shall provide PLAN with written notice of the amount and date of the transfer within seven (7) calendar days after funds have been transferred to State DHCS for use as the nonfederal share of any IGT MMCRRIs. E. Form and Timing of Payments PLAN agrees to pay LMMCRR IGT Payments to PROVIDER in the following form and according to the following schedule: (1) PLAN agrees to pay the LMMCRR IGT Payments to PROVIDER using the same mechanism through which compensation and payments are normally paid to PROVIDER (e.g., electronic transfer). (2) PLAN will pay the LMMCRR IGT Payments to PROVIDER no later than thirty (30) calendar days after receipt of the IGT MMCRRIs from State DHCS. F. Consideration (1) As consideration for the LMMCRR IGT Payments, PROVIDER shall use the LMMCRR IGT Payments for the following purposes and shall treat the LMMCRR IGT Payments in the following manner: (a) The LMMCRR IGT Payments shall represent compensation for emergency ambulance services rendered to Medi -Cal PLAN members by PROVIDER between July 1, 2018, and June 30, 2019, and shall be used by PROVIDER solely to fund the costs that exceed the fee-for-service rates paid by Medi -Cal PLAN for covered services provided to Medi- cal PLAN Members during that period. (b) To the extent that total payments received by PROVIDER for any State fiscal year under this Agreement exceed the cost of Covered Services provided to Medi -Cal PLAN members by PROVIDER during that fiscal year, any remaining LMMCRR IGT Payment amounts shall constitute an overpayment, and shall by returned to Medi -Cal PLAN pursuant to the provisions of Section 1.K., below 5-19 (2) Both parties agree that none of these funds, either from the GOVERNMENTAL FUNDING ENTITY or federal matching funds will be recycled back to the GOVERNMENTAL FUNDING ENTITY'S general fund, the State, or any other intermediary organization. Payments made by the health plan to providers under the terms of this Agreement constitute patient care revenues. G. PLAN's Oversight Responsibilities PLAN's oversight responsibilities regarding PROVIDER's use of the LMMCRR IGT Payments shall be limited as described in this paragraph. PLAN shall request, within thirty (30) calendar days after the end of each State fiscal year in which LMMCRR IGT Payments were transferred to PROVIDER, a written confirmation that states whether and how PROVIDER complied with the provisions set forth in Paragraph 1.F above. In each instance, PROVIDER shall provide PLAN with written confirmation of compliance within thirty (30) calendar days of PLAN's request. H. Cooperation Among Parties Should disputes or disagreements arise regarding the ultimate computation or appropriateness of any aspect of the LMMCRR IGT Payments, PROVIDER and PLAN agree to work together in all respects to support and preserve the LMMCRR IGT Payments to the full extent possible on behalf of the safety net in Orange County. I. Reconciliation Within one hundred twenty (120) calendar days after the end of each of PLAN's fiscal years in which LMMCRR IGT Payments were made to PROVIDER, PLAN shall perform a reconciliation of the LMMCRR IGT Payments transmitted to the PROVIDER during the preceding fiscal year to ensure that the supporting amount of IGT MMCRRIs were received by PLAN from State DHCS. PROVIDER agrees to return to PLAN any overpayment of LMMCRR IGT Payments made in error to PROVIDER within thirty (30) calendar days after receipt from PLAN of a written notice of the overpayment error, unless PROVIDER submits a written objection to PLAN. Any such objection shall be resolved in accordance with the dispute resolution process set forth in Section I.H. The reconciliation processes established under this paragraph are distinct from the indemnification provisions set forth in Paragraph 1.J below. PLAN agrees to transmit to the PROVIDER any underpayment of LMMCRR IGT Payments within thirty (30) calendar days of PLAN's identification of such underpayment. 11 5-20 J. Indemnification PROVIDER agrees to and acknowledges the following: (1) PLAN has no obligation to make any payments hereunder until PLAN has received IGT MMCRRIs from State DHCS; (2) that PLAN is not responsible for State DHCS payments to PLAN, including any mathematical calculations made by DHCS; (3) PLAN is not responsible for the timing of the payments from DHCS to PLAN (including the conditions precedent to the timing of such payments which includes the timing of DHCS submission to CMS and/or CMS review and approval). In addition, PLAN and PROVIDER agree and acknowledge that nothing herein is intended to create an obligation on the part of PLAN to agree to delays in capitation payment(s) from State DHCS in order to accommodate this IGT; and (4) In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. K. Overpayments and CalOptima Right to Recover PROVIDER has an obligation to report any overpayment identified by PROVIDER, and to repay such overpayment to CalOptima within sixty (60) days of such identification by PROVIDER, or of receipt of notice of an overpayment identified by CalOptima. PROVIDER acknowledges and agrees that, in the event that CalOptima determines that an amount has been overpaid or paid in duplicate, or that funds were paid which were not due under this Contract to PROVIDER, CalOptima shall have the right to recover such amounts from PROVIDER by recoupment or offset from current or future amounts due from CalOptima to PROVIDER, after giving notice and an opportunity to return/pay such amounts. This right to recoupment or offset shall extend to any amounts due from PROVIDER to CalOptima, including, but not limited to, amounts due because of overpayments as described in the provisions of this agreement. 2. Term The term of this Agreement shall commence on July 1, 2018 and shall terminate on September 30, 2021. 5 5-21 SIGNATURES HEALTH PLAN: CalOptima By: Michael Schrader, Chief Executive Officer APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: G 1 By: Aaron C. Harp �� •Lu `� City Attorney ATTEST: Date: Leilani I. Brown City Clerk C, Date: CITY OF NEWPORT BEACH, a California municipal corporation and charter city operating through its Fire Department Date: Diane B. Dixon Mayor 5-22 Department: Fire Requestor: Angela Crespi City of Newport Beach BUDGET AMENDMENT 2019-20 ONE TIME: ❑Yes ❑No ATTACHMENT D BA#: 002 -CC Approvals Prepared by: Susan Giangrapde ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date El COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To increase revenue estimates and expenditure appropriations related to the Medi -Cal IGT program. ❑from existing budget appropriations ❑✓ from additional estimated revenues ❑from unappropriated fund balance REVENUES Fund # Org Object Project 010 101040404 431246 1 Description Emergency Medical Services - Medi -Cal I t Increase or (Decrease) $ $643,254.00 EXPENDITURES Fund # Org Object Project Subtotal Description $643,254.00 Increase or (Decrease) $ 010 101040404 821008 Emergency Medical Services - Medi -Cal Igt $321,768.00 FUND BALANCE Fund # Object 010 300000 Description General Fund - Unappropriated Fund Balance Subtotal Subtotal $321,768.00 Increase or Decrease $ $321,486.00 $321,486.00 Fund Balance Change Required 5-23