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Home My WebLink AboutC-8085-3B - Intergovernmental Agreement Regarding Transfer of Public Funds 2018 #17-94737CONTRACT #17-94737 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 (GOVERNMENTAL FUNDING ENTITY) with respect to the matters set forth below. The parties agree as follows: AGREEMENT 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 following rate category per member per month (PMPM) contribution increments multiplied by member months: Funding Entity: Health Plan: RatirM Region: City of Newport Beach CalOptima Orange Rate Category Contribution PMPM Estimated Member Months Estimated Contribution (Non - Federal Share) Child - non MCHIP $ 0.02 2,555,740 $ 51,115 Adult- non MCHIP $ 0.05 1,147,059 $ 57,353 Adult - MCHIP $ 0.01 46,484 $ 465 SPD $ 0.15 479,693 $ 71,954 SPD Full Dual $ 0.03 489 $ 15 BCCTP $ 0.25 7,110 $ 1,777 LTC $ 1.16 14,059 $ 16,308 Optional E)pansion 7/2017- 12/2017 $ 0.01 1,428,132 $ 14,281 Optional E pansion 112018 - 6/2018 $ 0.01 1,424,636 $ 14,246 Estimated Total 7,103,401 227,514 Template Version- 3/2018 CONTRACT 417-94737 The GOVERNMENTAL FUNDING ENTITY agrees to initially transfer amounts that are calculated using the Estimated Member Months in the chart above, which will be reconciled to actual enrollment for the service period of July 1, 2017 through June 30, 2018 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 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 Sub -Section 1.1 of this Agreement, to actual enrollment in HEALTH PLAN(S) for the service period of July 1, 2017 through June 30, 2018 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, 2018. 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 2 Template Version- 3/2018 CONTRACT #17-94737 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 of this Agreement shall be used to fund the non-federal share of Medi -Cal Managed Care actuarially sound capitation rates described in section 14301.4(b)(4) of the Welfare and Institutions Code as reflected in the contribution PMPM and rate categories reflected in the chart set forth in Sub -Section 1.1. 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, 2017 through June 30, 2018, 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 Template Version- 3/2018 CONTRACT #17-94737 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. 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. 4 Template Version- 3/2018 CONTRACT #17-94737 5. 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: City of Newport Beach Fire Department Attn: Angela Velazquez, Administrative Manager 100 Civic Center Drive Newport Beach, California 92660 acrespi@nbfd.net With copies to: To DHCS: City of Newport Beach Attn: City Attorney's Office 100 Civic Center Drive Newport Beach, California 92660 akomeili@newportbeachca.gov Sandra Dixon California Department of Health Care Services Capitated Rates Development Division 1501 Capitol Ave., Suite 71-4002 MS 4413 Sacramento, CA 95814 Sandra.Dixon@dhcs. 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 5 Template Version- 3/2018 CONTRACT #17-94737 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. 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, 2017 and shall expire as of December 31, 2020 unless terminated earlier by mutual agreement of the parties. 6 Template Version- 3/2018 CONTRACT #17-94737 SIGNATURES IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of the last signature below. THE CITY OF NEWPORT BEACH By: Date: Marshall "Duffy" Duffield, Mayor JUL 18 2018 THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES: By: - Date: l (� Jennifer Lopez, Acting Division Chief, Capitated Rates Development Division APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date:- h"/P/tg By rRl Aaron C. Harp, City Attorney Attest L.eilani I. Brown, MMC, City Clerk Date: 7 Template Version- 3/2018 Exhibit 1 - Wire Request Invoice City of Newport Beach: 2017-18 Section 1 Amount under the Agreement: Health Plan: CalOptima Rating Region: Orange Rate Category Contribution PMPM Estimated Member Months as of 1/2019 Estimated Contribution (Non -Federal Share) Child - non MCHIP $ 0.02 2,517,847 $ 50,357 Adult - non MCHIP $ 0.05 1,124,257 $ 56,213 Adult - MCHIP $ 0.01 42,562 $ 426 SPD $ 0.15 483,143 $ 72,471 SPD Full Dual $ 0.03 26,745 $ 802 BCCTP $ 0.25 7,396 $ 1,849 LTC $ 1.16 14,779 $ 17,144 Optional Expansion 7/2017 - 12/2017 $ 0.01 1,412,292 $ 14,123 Optional Expansion 1/2018 - 6/2018 $ 0.01 1,418,424 $ 14,184 Estimated Total 7,047,445 $ 227,569 Total 2017-18 Section 1 Amount $ 227,569 2017-18 Section 3 Amount under the Agreement: Total 2017-18 Section 1 Amount (above) $ 227,569 Less amount not subject to fee (Section 3.2) Basis for 20% Assessment Fee $ 227,569 20% Assessment Fee (Basis * 20%) $ 45,514 Total Wire Transfer Amount $ 273,083 DHCS State of California—Health and Human Services Agency Department of Health Care Services 0 �Q. JENNIFER KENT GAVIN NEWSOM DIRECTOR GOVERNOR FEB 2 6 2019 Angela Velazquez, Administrative Manager City of Newport Beach Fire Department 100 Civic Center Drive Newport Beach, CA 92660 Dear Ms. Velazquez: The Department of Health Care Services (DHCS) has completed its initial calculation of, the 2017-18 Rate Range Program wire transfer amounts for the Intergovernmental Agreement Regarding Transfer of Public Funds, No.17-94737. As provided in this agreement, DHCS is requesting that the City of Newport Beach transfer initial funds in the amount of $273,083 to DHCS by no later than April 1, 2019, and provide at least 48 hours advance notice prior to transferring the funds via e-mail. The executed Intergovernmental Agreement Regarding Transfer of Public Funds is enclosed. As stated in Section 1.3 of the agreement, the enrollment reconciliations will occur on an ongoing basis as updated enrollment figures become available. Actual enrollment will not be considered final until two years after June 30, 2018. The Exhibit 1 contains the initial invoice. Please transfer the above amount to the following: Bank of America Sacramento Main 555 Capitol Mall, Suite 1555 Sacramento, CA 95814 For Credit to State of California Account #01482-80005 ABA# 0260-0959-3 For Further Credit to: Department of Health Care Services Reference 17-94737 City of Newport Beach is requested to provide a 48 hour advance notice, prior to the wiring of the requested funds, which are due to DHCS no later than April 1, 2019. As requested by the State Treasurer's Office, all wires must be transmitted prior to 10:00 a.m, on the wiring date. Once the governmental funding entity has transferred funds to the specified account, please email Sandra Dixon at.Sandra.Dixonc@_dhcs.ca.gov with the completed transaction information. Capitated Rates Development Division 1501 Capitol Avenue, P.O. Box 997413, MS 4413 Sacramento, CA 95899-7413 Phone (916) 322-5831 Fax (916) 650-6860 www.dhcs.ca.gov Angela Velazquez Page 2 If you have any questions regarding the Intergovernmental Transfer Agreement, please contact Sandra Dixon at (916) 345-8269. Sincerely Jennifer Lopez Division Chief Capitated Rates Development Division Enclosure cc: Armeen Komeili ✓ City Attorney's Office City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Sandra Dixon Capitated Rates Development Division Department of Health Care Services P.O. Box 997413, MS 4413 Sacramento, CA 95899-7413