REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Scott M. Haberle, Fire Chief
PREPARED BY: Bonnie To, Principal Management Analyst
Subject:
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Approve and authorize execution of a “Health Plan-Provider Agreement - Intergovernmental Transfer Rate Range Program Agreement” between CalOptima Health and the City of Huntington Beach
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Statement of Issue:
On November 7, 2023, City Council approved the Fire Department’s participation in the Voluntary Rate Range Intergovernmental Transfer Program (VRRP IGT) to help recover unreimbursed City costs for service to CalOptima patients. This RCA is the second agreement needed to finalize the intergovernmental transfer.
Financial Impact:
If the attached Health Plan-Provider Agreement with CalOptima is approved, the City will receive a $5,525,810 disbursement, which is detailed below:
$5,525,810 Estimated Disbursement to Huntington Beach after CalOptima’s 2% Share
- $2,282,450 Total Amount that Huntington Beach Pays (Budget Appropriation Approved 11/7/2023)
$3,243,360 Estimated Net Revenue that Huntington Beach Receives (98% Share) in FY 2023/24
Recommended Action:
recommendation
Approve and authorize execution of a “Health Plan-Provider Agreement - Intergovernmental Transfer Rate Range Program Agreement” between CalOptima Health and the City of Huntington Beach
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Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
On November 7, 2023, City Council approved and authorized execution of an agreement with the California Department of Health Care Services (DHCS) to participate in the Voluntary Rate Range Intergovernmental Transfer Program to help recover unreimbursed City costs for service to CalOptima patients. As part of this action, the City Council also approved a budget appropriation of $2,282,450 to provide a required upfront contribution, in order to participate in the program and eventually receive a larger disbursement of $5,525,810 through intergovernmental transfer with CalOptima and DHCS. The proposed Health Plan-Provider Agreement with CalOptima Health must be approved and executed in order to receive this disbursement, resulting in a net revenue of approximately $3,243,360 for additional reimbursement of Medi-Cal Managed Care services that were incurred and unreimbursed for the service period of January 1, 2022 through December 31, 2022.
Environmental Status:
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.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects.
Attachment(s):
1. Agreement between CalOptima Health and the City of Huntington Beach
2. File # 23-949 from the November 7, 2023 Council Meeting
3. VRRP IGT PowerPoint from The November 7, 2023 Council Meeting