BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2352
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           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
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           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
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