CA SB1335

Authorizes federally qualified health centers (FQHCs) and rural health clinics (RHCs) to enroll as Drug Medi-Cal certified providers and provide substance use disorder treatment services with reimbursement through mutually agreed contracts with counties or the state department.

Requires Drug Medi-Cal service costs to be adjusted out of FQHCs' and RHCs' per-visit prospective payment system (PPS) rates and prohibits double-billing the PPS rate for services reimbursed through Drug Medi-Cal.

Allows FQHCs and RHCs that entered into contracts with mental health plans on or before January 1, 2017, to continue providing specialty mental health services if costs are reimbursed outside the per-visit PPS rate.

Permits counties to contract directly with FQHCs and RHCs for Drug Medi-Cal services; if a county refuses, the provider may request to contract with the state department at the fee-for-service rate.

Implementation is contingent on obtaining federal financial participation and necessary federal approvals under the California Medi-Cal 2020 Demonstration waiver.