BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 395
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      AB 395 (Pan) - As Amended:  April 7, 2011 

          Policy Committee:                              HealthVote:15-1

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill adds Severe Combined Immunodeficiency (SCID) to the 
          list of genetic diseases screened for in California's Newborn 
          Screening (NBS) Program.

           FISCAL EFFECT  

          1)Annual estimated screening costs to the Department of Public 
            Health NBS Program statewide of $5 million (special fund).  
            This test is estimated to cost $9.50 per child. 

          2)Annual estimated screening costs to the Medi-Cal program of 
            $2.2 million (50% General Fund (GF)). Medi-Cal pays for 
            approximately 45% of the births in the state, and reimburses 
            the NBS Program for screening costs associated with Medi-Cal 
            births.  In addition, annual treatment costs to the Medi-Cal 
            program for babies diagnosed with SCID are estimated to be in 
            the range of $250,000 annually (50% GF). 

          3)Annual treatment cost savings to the Medi-Cal program from 
            early detection of SCID, potentially in the range of $1-2 
            million annually (50% GF).  In the absence of early detection, 
            treatment costs for the handful of newborns in the Medi-Cal 
            program with SCID annually are highly variable and can be 
            significant, depending on the time of diagnosis, whether they 
            are diagnosed before succumbing to lethal opportunistic 
            infections, and whether and when treatment is attempted.  
            According to researchers familiar with SCID, there are 
            documented cases where a treatment costs for a single infant 
            diagnosed with SCID after 3.5 months exceeded $1 million.










                                                                  AB 395
                                                                  Page  2

           COMMENTS  

           1)Rationale  .  According to the author, the purpose of this bill 
            is to add SCID to the NBS Program, making it the 30th disease 
            that is screened.  The author argues that this bill is needed 
            to implement the recommendations of the Secretary's Advisory 
            Committee on Heritable Disorders in Newborns and Children 
            (SACHDNC) and brings the NBS Program into alignment with the 
            most up-to-date public health standards.  

           2)Newborn Screening . All states have established newborn 
            screening programs for congenital diseases that benefit from 
            early detection and treatment. California began its NBS 
            Program in 1966 with the testing for phenylketonuria (PKU).  
            The program has since been expanded several times, through the 
            budget process as well as through legislation directing the 
            department to add a specific disorder.  California currently 
            screens for 29 of the 30 core conditions recommended by 
            SACHDNC, a national expert advisory body that evaluates and 
            makes recommendations on the application of universal genetic 
            screening tests.  The only exception is SCID, which was added 
            to the list in May 2010.  

           3)SCID Screening Pilot  .  Begun in August 2010, DPH is 
            participating in a pilot project to test for SCID.  The 
            project is funded through federal and private grants.  
            According to the March of Dimes, all babies born in California 
            since the pilot began have been screened.  Out of 235,686 
            babies screened, seven have been identified as SCID babies.  
            The March of Dimes reports that all are being treated.  Since 
            babies with SCID have severely impaired immune systems, early 
            detection and treatment (before the age of 3.5 months) offers 
            significantly increased survival rates and avoidance of 
            treatment for opportunistic infections that often prove lethal 
            for babies who are not diagnosed and treated. 


           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081