BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 998 
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

             AB 998 (John A. Perez) - As Introduced:  February 27, 2009  

          Policy Committee:                              Health Vote:14-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes a state-only program to ensure  
          dialysis-only Medi-Cal beneficiaries remain eligible for  
          anti-rejection medication following a kidney transplant for up  
          to three years, unless the beneficiary becomes eligible for  
          Medicare or private health insurance that covers the medication.

           FISCAL EFFECT  

          1)Annual costs of $700,000 (100% GF) to provide post-transplant  
            anti-rejection medication to Medi-Cal beneficiaries who had  
            formerly been on dialysis-only Medi-Cal and who would either  
            return to that program or require a new kidney transplant.  
            This estimate assumes beneficiaries would only require two of  
            the three years of the post-transplant medication support.  
            Under current law, Medi-Cal pays during the first year after  
            transplantation due to a continued disability status. As a  
            patient recovers, this disability status is lost and the  
            patient loses payment for the medications. Actual costs may be  
            lower to the extent that individuals benefiting from this bill  
            need to be in specific eligibility circumstances: (a)  
            initially dialysis-only Medi-Cal, (b) in need of a kidney  
            transplant, (c) be matched and receive a kidney transplant,  
            and (d) have no other payer (private health insurance or  
            Medicare) available to support post-transplantation  
            medications. This estimate reflects the small number of people  
            who may meet these requirements. Under current law, only 80  
            beneficiaries per month are enrolled in dialysis-only  
            Medi-Cal.  

          2)Reduced Medi-Cal costs to the extent this bill reduces the  
            need for a return to dialysis-only Medi-cal or a new  
            transplant. An additional transplant or continuation of  
            dialysis-only treatment costs between $50,000 and $100,000 per  
            year. 





                                                                  AB 998 
                                                                  Page  2


           COMMENTS  

           Rationale  . This bill creates continuity of treatment for  
          patients who are initially on a specific dialysis-only Medi-Cal  
          program which serves beneficiaries with chronic kidney disease  
          and who require dialysis. Dialysis is a substitute for the  
          normal functioning of the kidneys. It filters waste products  
          from the blood. Following a kidney transplant, these patients no  
          longer require dialysis and are no longer deemed disabled for  
          the purposes of their very narrow Medi-Cal coverage.  If a  
          patient has no Medi-Cal, private insurance, or Medicare  
          coverage, they are at risk for organ failure, a return to  
          dialysis, death, or a new transplant. The author indicates a  
          significant investment has already been made via the transplant  
          and patients should be afforded continuity of care at a much  
          lower costs than alternatives. 

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081