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