DATE: June 10, 2025
TO: Board of Supervisors
SUBMITTED BY: Susan Holt, Director, Department of Behavioral Health
SUBJECT: Retroactive Intergovernmental Transfer Agreements for Drug Medi-Cal-Organized Delivery System (DMC-ODS) Services
RECOMMENDED ACTION:
TITLE
Approve and authorize the Chairman to execute a retroactive Intergovernmental Transfer (IGT) Agreement with the California Department of Health Care Services (DHCS) to align with updated Agreement No. 25-008 (State Agreement No. 24-40134), which withholds the same fixed percentage of funding allocated to the County from the Local Revenue Fund 2011 as the prior IGT it replaces and which funds the County's nonfederal share of Medi-Cal payments associated with the provision of Expanded Substance Use Disorder (SUD) treatment services effective January 1, 2025, through December 31, 2026.
REPORT
There is no Net County Cost associated with the recommended action nor will there be any changes to the current monthly withholding rate or IGT process. The recommended action will retroactively authorize the California Department of Health Care Services (DHCS) to continue to instruct the State Controller's Office (SCO) to withhold a portion of the Department's funding each month. The withholdings are to fund the nonfederal share of Medi-Cal payments costs associated with the provision of Expanded SUD treatment Services. The County's nonfederal share, together with the applicable Federal Financial Participation (FFP) and State funds, will be paid by DHCS to the Department based on approved claims. This item is countywide.
ALTERNATIVE ACTION:
There are no viable alternative actions. Effective July 1, 2023, the California Advancing and Innovating Medi-Cal (CalAIM) Act required the DHCS to implement an Intergovernmental Transfer (IGT)-based payment methodology to replace the existing certified public expenditure-based reimbursement methodology. The County has already entered into an agreement to transfer funds to the ...
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