BILL ANALYSIS AB 2352 Page 1 CORRECTED - 06/02/2010 Technical change (Member name) ASSEMBLY THIRD READING AB 2352 (John A. Perez) As Introduced February 19, 2010 Majority vote HEALTH 17-0 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Monning, Fletcher, |Ayes:|Fuentes, Ammiano, | | |Ammiano, Carter, Conway, | |Bradford, | | |Caballero, Emmerson, Eng, | |Charles Calderon, Coto, | | |Hayashi, Hernandez, | |Davis, | | |Jones, | |Monning, Ruskin, Skinner, | | |Bonnie Lowenthal, Nava, | |Solorio, | | |V. Manuel Perez, Salas, | |Torlakson, Torrico | | |Smyth, Audra Strickland | | | |-----+--------------------------+-----+--------------------------| | | |Nays:|Conway, Harkey, Miller, | | | | |Nielsen, Norby | | | | | | ----------------------------------------------------------------- SUMMARY : Requires Medi-Cal beneficiaries to remain eligible to receive Medi-Cal coverage for anti-rejection medication for up to two years following an organ transplant unless during that time the beneficiary becomes eligible for Medicare or private health insurance that would cover the medication. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Annual costs of $500,000 (100% General Fund) 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. 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 2352 Page 2 COMMENTS : According to the author, there are currently some patients that qualify for Medi-Cal under a federal rule allowing coverage for patients with end-stage renal disease (on dialysis). Those patients, if they are able to receive a kidney and have an organ transplant, will only receive coverage for their immunosuppressive medication for one year post-transplant as the person's Medi-Cal eligibility ends when he or she no longer meets the eligibility requirement of end-stage renal disease. Patients in this particular group may not be eligible for Medi-Cal under any other eligibility criteria, and they may also be ineligible for Medicare, either because they have not paid into Social Security for a sufficient time or because of their immigration status. The author states that if these patients were dual-eligible for Medicare and Medi-Cal, Medicare would pay for immunosuppressive coverage for an additional two years, so the patient would have immunosuppressive drugs for a total of three years post-transplant. Because patients who have had a kidney transplant must have immunosuppressive drugs or their body will naturally reject the organ, they have a medical need for the anti-rejection medication to prevent kidney failure, being placed back on dialysis or, in a worst-case scenario, death. The author argues the state has already paid for the organ transplant surgery (the cost of transplant surgery is $50,000 to $100,000 according to the author) and it makes no sense to drop Medi-Cal coverage for these patients after only a year when many organ transplant patients are not yet stable or ready to enter the workforce. The Patient Protection and Affordable Care Act (P. L. 111-148), among other provisions, requires states, as of January 2014 to include all adults with income up to 133% of the Federal Poverty Level (FPL) in its Medicaid Program and provides enhanced federal matching assistance funds.. States have the option to begin providing medical assistance to individuals eligible under this new group as of April 1, 2010. Transplant patients who have income under 133% of FPL will have full-scope Medi-Cal once this is implemented. Analysis Prepared by : Marjorie Swartz / HEALTH / (916) 319-2097 AB 2352 Page 3 FN: 0004653