CA AB822

Adds Section 14021.1 to establish that observation services for psychiatric emergency medical conditions are covered under Medi-Cal, including facility services in hospital emergency departments or observation units.

Requires mental health plans and Medi-Cal managed care plans to notify each other within 24 hours when a beneficiary with a confirmed or suspected psychiatric emergency medical condition is identified in a hospital.

Mandates that memoranda of understanding between mental health plans and Medi-Cal managed care plans include coordination processes for observation services for psychiatric emergencies.

Sets reimbursement rates for fee-for-service beneficiaries at not less than 80 percent of the Medicare rate for HCPCS code G0378, with mental health plans responsible for confirmed psychiatric emergencies and managed care plans responsible for suspected conditions later determined not to be psychiatric emergencies.

Requires network agreements between mental health plans and general acute care hospitals to include provisions for coordinating observation services, and conditions implementation on obtaining necessary federal approvals and federal financial participation.