BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2352|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2352
          Author:   John A. Perez (D)
          Amended:  7/15/10 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  6-0, 6/23/10
          AYES:  Alquist, Cedillo, Leno, Negrete McLeod, Pavley,  
            Romero
          NO VOTE RECORDED:  Strickland, Aanestad, Cox
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-4, 8/12/10
          AYES:  Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
          NOES:  Ashburn, Emmerson, Walters, Wyland
           
          ASSEMBLY FLOOR  :  62-12, 6/1/10 - See last page for vote


           SUBJECT  :    Medi-Cal:  organ transplants:  antirejection  
          medication

           SOURCE  :     Author


           DIGEST  :    This bill 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.

           ANALYSIS  :    

                                                           CONTINUED





                                                               AB 2352
                                                                Page  
          2

          Existing federal law:

          1. Establishes the Medicaid program to provide  
             comprehensive health benefits to low-income persons.  

          2. Mandates states that elect to provide Medicaid benefits  
             to cover certain eligibility groups, such as low-income  
             children, those receiving supplemental security income  
             (SSI) and others.  

          3. Allows states the option of providing Medicaid benefits  
             to other groups, including disabled persons who are not  
             eligible for SSI or children in families with incomes  
             above the mandatory coverage level.

          Existing state law: 

          1. Establishes the Medi-Cal program as California's  
             Medicaid program, administered by the Department of  
             Health Care Services (DHCS), which provides  
             comprehensive health care coverage for low-income  
             individuals and their families; pregnant women; elderly,  
             blind, or disabled persons; nursing home residents; and  
             refugees who meet specified eligibility criteria.  

          2. Establishes that the Medi-Cal program comprises a  
             uniform schedule of health care benefits, including  
             transplants for eligible beneficiaries, subject to  
             utilization controls.  

          3. Provides limited Medi-Cal benefits for specified  
             life-sustaining treatments, including dialysis.  

          4. Establishes eligibility criteria for dialysis-only  
             benefits related to diagnosis, net worth and absence of  
             other coverage.  

          5. Provides that eligible beneficiaries for dialysis  
             benefits shall pay a share of cost based on their net  
             worth.

          This bill:

          1. Requires Medi-Cal beneficiaries to remain eligible to  

                                                           CONTINUED





                                                               AB 2352
                                                                Page  
          3

             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.

          2. States that DHCS may implement, interpret, or make  
             specific this section by means of all-county letters,  
             provider bulletins, or similar instructions, without  
             taking any further regulatory action.

           Comments  

          This bill addresses the situation of a Medi-Cal beneficiary  
          who has received an organ transplant.  The beneficiary may  
          have gained Medi-Cal eligibility through the special  
          treatment eligibility option for persons with end stage  
          renal disease, or by meeting other Medi-Cal eligibility  
          criteria.  The renal disease eligibility is not full scope  
          and covers only dialysis and related services.  As the  
          renal disease advances, the beneficiary is likely to become  
          disabled and then become eligible for full scope Medi-Cal.   
          Medi-Cal covers the cost of the major organ transplant  
          procedure and the anti-rejection medication.  However, as  
          the beneficiary improves, they may lose their Medi-Cal  
          eligibility if they no longer meet the criteria for  
          disability, as determined by a review team.  If the  
          beneficiary no longer is considered disabled, they will  
          lose their Medi-Cal eligibility, unless they retain  
          eligibility by meeting other criteria.  Once they have lost  
          their eligibility, they will not have their antirejection  
          medicines covered by Medi-Cal.

          While the beneficiary is enrolled in Medi-Cal, the federal  
          government is paying its share, generally 50 percent, of  
          the medical costs.  This bill's eligibility expansion is  
          not a mandatory or optional coverage under federal law.   
          Because there is no federal match, the bill creates a  
          program for which the state pays the entire costs, also  
          known as a "state only" program.  Federal matching funds  
          would only be available if the state were to pursue what is  
          known as a waiver.  Under federal law, certain federal  
          requirements can be waived and federal matching funds  
          obtained.  The state already has a number of waivers in its  

                                                           CONTINUED





                                                               AB 2352
                                                                Page  
          4

          Medi-Cal program, but these do not include the population  
          addressed by this bill.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

             Major Provisions                2010-11     2011-12     
             2012-13               Fund  

            Medication costs              $190      $400       
            $400General

           SUPPORT  :   (Verified  6/23/10) (prior version of bill)

          American Federation of State, County and Municipal  
          Employees, AFL-CIO
          Astellas Pharma, U.S., Inc.
          California Healthcare Institute 
          California Medical Association
          California Transplant Donor Network
          Donate Life California
          National Kidney Foundation
          Western Center on Law & Poverty


           ARGUMENTS IN SUPPORT  :    Supporters argue that that access  
          to antirejection drugs is necessary and must be a priority  
          in the health care delivery system for transplant patients  
          because they help to suppress the immune system rejection  
          of the new organ.  They also note that advances in  
          antirejection medications have decreased the incidence of  
          adverse reactions to a donated organ significantly, but it  
          still remains one of the gravest dangers facing transplant  
          recipients.  They argue that extending the Medi-Cal  
          coverage period gives transplant recipients another year of  
          guaranteed access to these products, and they can continue  
          to recover and grow stronger.  


           ASSEMBLY FLOOR  : 

                                                           CONTINUED





                                                               AB 2352
                                                                Page  
          5

          AYES:  Adams, Ammiano, Arambula, Bass, Beall, Bill  
            Berryhill, Blakeslee, Block, Blumenfield, Bradford,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,  
            Furutani, Galgiani, Gilmore, Hall, Hayashi, Hernandez,  
            Hill, Huber, Huffman, Jones, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Monning, Nava, Nestande, V.  
            Manuel Perez, Portantino, Ruskin, Salas, Saldana,  
            Skinner, Solorio, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, John A. Perez
          NOES:  Anderson, DeVore, Gaines, Garrick, Hagman, Jeffries,  
            Knight, Miller, Niello, Nielsen, Norby, Smyth
          NO VOTE RECORDED:  Tom Berryhill, Fuller, Harkey, Silva,  
            Audra Strickland, Vacancy


          CTW:mw  8/16/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****























                                                           CONTINUED