§ 5961.4. — 5961.4. (Amended by Stats. 2025, Ch. 105, Sec. 49.)

(a)
As a component of the initiative, the State Department of Health Care Services shall develop and maintain a school-linked statewide fee schedule for outpatient mental health or substance use disorder treatment provided to a student 25 years of age or younger at a schoolsite.
(b)
The department shall develop and maintain a school-linked statewide provider network of schoolsite behavioral health counselors.
(c)
(1)
Commencing January 1, 2024, and subject to subdivision (h), each Medi-Cal managed care plan and Medi-Cal behavioral health delivery system, as applicable, shall reimburse providers of medically necessary outpatient mental health or substance use disorder
treatment provided at a schoolsite to a student 25 years of age or younger who is an enrollee of the plan or delivery system, in accordance with paragraph (2), but only to the extent the Medi-Cal managed care plan or Medi-Cal behavioral delivery system is financially responsible for those schoolsite services under its approved managed care contract with the department.
(2)
Providers of medically necessary schoolsite services described in this section shall be reimbursed, at a minimum, at the fee schedule rate or rates developed pursuant to subdivision (a), regardless of network provider status.
(d)
(1)
The department may contract with an entity to administer the school-linked statewide behavioral health provider network in accordance with this subdivision.
(2)
The entity that administers the
school-linked statewide behavioral health provider network shall do all of the following:
(A)
Create and administer a process for enrolling and credentialing all eligible practitioners and providers seeking to provide medically necessary schoolsite services described in this section.
(B)
Create and administer a process for the submission and reimbursement of claims eligible to be reimbursed pursuant to this section, which may include resolving disputes related to the school-linked statewide all-payer fee schedule and administering fee collection pursuant to subdivision (g).
(C)
(i)
Create and administer a mechanism for the sharing of data between the entity contracted pursuant to this
subdivision and a health care service plan, insurer, or Medi-Cal managed care plan that covers medically necessary schoolsite services subject to the school-linked statewide all-payer fee schedule that is necessary to facilitate timely claims processing, payment, and reporting, avoid duplication of claims, allow for tracking of grievance remediation, and to facilitate coordination of care and continuity of care for enrollees.
(ii)
Clause (i) includes requiring the entity that administers the school-linked statewide behavioral health provider network to automate, to the maximum extent possible, matching student records with health plan enrollment information, in order to reduce or eliminate the administrative burden of collecting health plan enrollment data from individual students and families on local educational agencies and institutions of higher
education.
(iii)
The department shall require any entity administering the school-linked statewide behavioral health provider network to ensure both of the following:
(I)
Claims submitted pursuant to Section 1374.722 of the Health and Safety Code, Section 10144.53 of the Insurance Code, and subdivisions (c) and (f) are properly reimbursed according to applicable claim payment deadlines.
(II)
The deadline for a local educational agency or institutions of higher education to submit a retroactive claim for payment is the longer of the time permitted under either federal or state law.
(e)
A provider or practitioner of medically necessary schoolsite services participating in the school-linked statewide behavioral health provider
network described in this section shall do all of the following:
(1)
Comply with all administrative requirements necessary to be enrolled and credentialed, as applicable, by the entity that administers the school-linked statewide behavioral health provider network.
(2)
Submit all claims for reimbursement for services billed under the school-linked statewide all-payer fee schedule through the entity that administers the school-linked statewide behavioral health provider network.
(3)
If a provider or practitioner of medically necessary schoolsite services has, or enters into, a direct agreement established with a health care service plan, insurer, or Medi-Cal managed care plan that covers medically necessary schoolsite services outside of the school-linked statewide all-payer fee schedule, they shall be allowed to bill
for services provided directly under the terms of the established agreement.
(f)
(1)
A health care service plan, insurer, or Medi-Cal managed care plan that covers medically necessary schoolsite services subject to the school-linked statewide all-payer fee schedule, pursuant to Section 1374.722 of the Health and Safety Code, Section 10144.53 of the Insurance Code, and this section, shall comply with all administrative requirements necessary to cover and reimburse those services set forth by the entity that administers the school-linked statewide behavioral health provider network.
(2)
If an agreement exists between a health care service plan, insurer, or Medi-Cal managed care plan and a provider or practitioner of medically necessary schoolsite services outside of the school-linked statewide all-payer fee schedule, the health care service plan, insurer, or
Medi-Cal managed care plan shall do all of the following:
(A)
At minimum, reimburse the contracted provider or practitioner at the school-linked statewide all-payer fee schedule rates.
(B)
Provide to the department data deemed necessary and appropriate for program reporting and compliance purposes.
(C)
Comply with all administrative requirements necessary to cover and reimburse medically necessary schoolsite services subject to the school-linked statewide all-payer fee schedule, as determined by the department.
(g)
(1)
The department shall establish and charge a fee to participating health care service plans, insurers, or Medi-Cal managed care plans to cover the reasonable cost of administering the school-linked statewide
behavioral health provider network.
(2)
The department shall set the fees in an amount that it projects is sufficient to cover all administrative costs incurred by the state associated with implementing this section and consider the assessed volume of claims and providers or practitioners of medically necessary schoolsite services that are credentialed and enrolled by the entity contracted pursuant to subdivision (d).
(3)
The department shall not assess the fee authorized by this subdivision until the time that the contract between the department and the entity contracted pursuant to subdivision (d) commences.
(4)
(A)
The department may periodically update the amount and structure of the fees, as necessary, to provide sufficient funding for the purpose specified in this subdivision.
(B)
The fees authorized in this paragraph shall be evaluated annually and based on the state’s projected costs for the forthcoming fiscal year.
(C)
If the department proposes to increase the fees, it shall notify the Legislature of the proposed increase through the submission of the semiannual Medi-Cal estimate provided to the Legislature.
(5)
(A)
(i)
The Behavioral Health Schoolsite Fee Schedule Administration Fund is hereby established in the State Treasury.
(ii)
The department shall administer the Behavioral Health Schoolsite Fee Schedule Administration Fund consistent with this subdivision.
(B)
All revenues, less refunds, derived from the fees
authorized in this subdivision shall be deposited in the Behavioral Health Schoolsite Fee Schedule Administration Fund.
(C)
The moneys in the Behavioral Health Schoolsite Fee Schedule Administration Fund shall be available upon appropriation by the Legislature and shall be used only for purposes of this subdivision.
(D)
Notwithstanding Section 16305.7 of the Government Code, interest and dividends earned on moneys in the Behavioral Health Schoolsite Fee Schedule Administration Fund shall be retained in the fund and used solely for the purposes specified in this section.
(E)
Notwithstanding any other provision of law, the Controller may use moneys in the Behavioral Health Schoolsite Fee Schedule Administration Fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381 of the Government
Code.
(F)
Funds remaining in the Behavioral Health Schoolsite Fee Schedule Administration Fund at the end of a fiscal year shall be available for use in the following fiscal year and taken into consideration in establishment of fees for the subsequent fiscal year.
(h)
This section shall be implemented only to the extent that the department obtains any necessary federal approvals, and federal financial participation under the Medi-Cal program is available and not otherwise jeopardized.
(i)
This section does not relieve a local educational agency or institution of higher education from requirements to accommodate or provide services to students with disabilities pursuant to any applicable state and federal law, including, but not limited to, the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400
et seq.), Part 30 (commencing with Section 56000) of Division 4 of Title 2 of the Education Code, Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1 of the Government Code, and Chapter 3 (commencing with Section 3000) of Division 1 of Title 5 of the California Code of Regulations.
(j)
The California Health and Human Service Agency shall publish a policy manual to assist a local education agency with navigating the federal Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191) and the federal Family Educational Rights and Privacy Act (20 U.S.C. Sec. 1232g) for purposes of participating in the school-linked statewide behavioral health provider network.
(k)
(1)
The State Department of Health Care Services shall, not less than twice a
year, convene a working group of stakeholders to discuss the status of, and receive feedback regarding, implementation of the fee schedule. The working group shall include, but is not limited to, representatives of all of the following:
(A)
Medi-Cal managed care plans.
(B)
Medi-Cal behavioral health plans.
(C)
Health care service plans.
(D)
Insurers.
(E)
Behavioral health providers.
(F)
Local educational agencies.
(G)
Labor representatives of school employees.
(H)
Members of the educational
community.
(2)
The department shall provide notice, and relevant updates and information on the status of the implementation of the fee schedule, to all of the following:
(A)
The Assembly Committee on Budget.
(B)
The Assembly Committee on Education.
(C)
The Assembly Committee on Health.
(D)
The Senate Committee on Budget and Fiscal Review.
(E)
The Senate Committee on Education.
(F)
The Senate Committee on Health.
(3)
This subdivision shall become inoperative on July 1, 2030.
(
l
)
For purposes of this section, the following definitions shall apply:
(1)
“Comprehensive risk contract” has the same meaning as set forth in Section 438.2 of Title 42 of the Code of Federal Regulations.
(2)
“Institution of higher education” means the California Community Colleges, the California State University, or the University of California.
(3)
“Local educational agency” means a school district, county office of education, charter school, the California Schools for the Deaf, and the California School for the Blind.
(4)
“Medi-Cal behavioral health delivery system” has the meaning described in subdivision (i) of Section 14184.101.
(5)
“Medi-Cal managed care plan” means any individual, organization, or entity that enters into a comprehensive risk contract with the department to provide covered full-scope health care services to enrolled Medi-Cal beneficiaries pursuant to any provision of Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9.
(6)
“Schoolsite” has the meaning described in
paragraph (6) of subdivision (b) of Section 1374.722 of the Health and Safety Code.

Legislative History

Amended by Stats. 2025, Ch. 105, Sec. 49. (AB 144) Effective September 17, 2025.