HomeMy WebLinkAbout2024-66 - Authorizing Execution of the Intergovernmental Agreement Regarding Transfer of Public Funds with the Department of Health Care Services (DHCS), and the Health Plan-Provider Agreement with Caloptima, to Participate in the Medi-Cal Rate Range InteRESOLUTION NO. 2024-66
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING
EXECUTION OF THE INTERGOVERNMENTAL
AGREEMENT REGARDING TRANSFER OF PUBLIC
FUNDS WITH THE DEPARTMENT OF HEALTH CARE
SERVICES (DHCS), AND THE HEALTH PLAN -
PROVIDER AGREEMENT WITH CALOPTIMA, TO
PARTICIPATE IN THE MEDI-CAL RATE RANGE
INTERGOVERNMENTAL TRANSFER (IGT) PROGRAM
WHEREAS, since 2006, the California Department of Health Care Services
("DHCS") has offered local agencies 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 provider;
WHEREAS, CalOptima, a California public agency ("CalOptima"), is the County
Organized Health System created by the Orange County Board of Supervisors to serve
as the local Medi-Cal managed care plan provider 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 provider of health care that receives
payment from CalOptima pursuant to an agreement for the provision of emergency
medical transport services to Medi-Cal members on a fee -for -service basis, but has
unreimbursed costs associated with providing these services;
WHEREAS, participation in the IGT program with DHCS and CalOptima provides
an opportunity for the City to recover previously unreimbursed costs associated with
providing services to Medi-Cal members, potentially reaching full cost recovery for
Emergency Medical Services in accordance with Newport Beach Municipal Code Chapter
3.36 (Cost Recovery for User Services);
WHEREAS, the IGT program requires participants to contribute to the non-federal
share of Medi-Cal Managed Care, which DHCS will combine with related federal funds
and distribute to local Medi-Cal managed care plan providers for distribution to
participating local agencies to reimburse unfunded costs for serving Medi-Cal plan
members;
Resolution No. 2023-66
Page 2 of 3
WHEREAS, the estimated non-federal share contribution for the City for the
period of January 1, 2023, through December 31, 2023, is Three Hundred Sixty Seven
Thousand Nine Hundred Eighty Seven Dollars ($367,987);
WHEREAS, pursuant to Welfare and Institutions Code §14301.4(d)(1), the non-
federal share contribution is subject to a twenty percent (20%) administrative fee to
reimburse DHCS for the administrative costs of operating the IGT program; and
WHEREAS, to date, the City has transferred a total of Two Million Five Hundred
Seventy Five Thousand Nine Hundred and Ninety Nine Dollars ($2,575,999) in non-
federal share contributions, has received IGT program funding in the amount of Four
Million Seven Hundred One Thousand Four Hundred Seventy Dollars ($4,701,470),
which has resulted in a net return of Two Million One Hundred Twenty Five Thousand
Four Hundred Seventy One Dollars ($2,125,471) to reimburse and draw down previously
unfunded costs for providing services to Medi-Cal members.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby authorize the Mayor, or designee, to
execute: (1) the Intergovernmental Agreement Regarding Transfer of Public Funds with
DHCS regarding the City's transfer of its 2023 estimated IGT non-federal share amount
of Three Hundred Sixty Seven Thousand Nine Hundred Eighty Seven Dollars ($367,987),
subject to a twenty percent (20%) administrative fee of Seventy Three Thousand Five
Hundred Ninety Seven Dollars ($73,597); and, (2) the Health Plan -Provider Agreement
Intergovernmental Transfer Rate Range Program with CalOptima regarding CalOptima's
distribution of IGT funds to the City to reimburse the City for its unfunded costs of
providing transport services to Medi-Cal plan members.
Section 2: The City Council does hereby authorize the City Manager, or
designee, to execute any and all other documents necessary or prudent to ensure
participation in the IGT program, including but not limited to, amendments of the above
referenced agreements, provided that any such amendment does not extend the term of
the agreement beyond five (5) additional years, or increase contribution amounts in
excess of an additional One Hundred Twenty Thousand Dollars ($120,000).
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Resolution No. 2023-66
Page 3 of 3
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.
Section 6: 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 10th day of September, 2024.
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
aron C. Harp
City Attorney
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Will O'Neill
Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2024-66 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 101h day of September, 2024; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tern Joe Stapleton, Councilmember Brad Avery,
Councilmember Noah Blom, Councilmember Robyn Grant, Councilmember
Lauren Kleiman, Councilmember Erik Weigand
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said
City this 11ch day of September, 2024.
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Leilani I. Brown
City Clerk
Newport Beach, California