BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 415
                                                                Page  1
        CONCURRENCE IN SENATE AMENDMENTS
        AB 415 (Logue)
        As Amended September 2, 2011
        Majority vote
         
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        |ASSEMBLY:  |76-0 |(June 1, 2011)  |SENATE: |35-0 |(September 7,  |
        |           |     |                |        |     |2011)          |
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         Original Committee Reference:   HEALTH  

         SUMMARY  :  Establishes the Telehealth Advancement Act of 2011 to 
        revise and update existing law to facilitate the advancement of 
        telehealth as a service delivery mode in managed care and the 
        Medi-Cal Program.  

         The Senate amendments  : 

        1)Revise the definition of "originating site."

        2)Define synchronous interaction to mean a real-time interaction 
          between a patient and a health care provider located at a distant 
          site.

        3)Exempt a patient under the jurisdiction of the Department of 
          Corrections and Rehabilitation or any other correctional facility.

        4)Prevent health plans and insures from requiring in-person contact 
          or from limiting the type of setting for covered services 
          appropriately provided through telehealth subject to certain 
          contracts, as specified.

        5)Correct references to Medi-Cal managed care programs.

        6)Reaffirm provisions of Medi-Cal law relating to payment rates to 
          hospitals.

        7)Provide, notwithstanding any other provision of law, the governing 
          body of the hospital whose patients are receiving the telehealth 
          services may grant privileges to, and verify and approve 
          credentials for, providers of telehealth services based on its 
          medical staff recommendations that rely on information provided by 
          the distant-site hospital or telehealth entity, as described in 
          federal regulations, as specified.









                                                                AB 415
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        8)Provide that by enacting 7) above it is the intent of the 
          Legislature to authorize a hospital to grant privileges to, and 
          verify and approve credentials for, providers of telehealth 
          services as described in 7) above.

        9)Define "telehealth" to include "telemedicine" as the term is 
          referenced in federal regulations, as specified.

         AS PASSED BY THE ASSEMBLY  , this bill updated and defined terminology 
        in existing law, repealed written informed consent requirements 
        related to telemedicine, required health plans, including those that 
        contract with the Medi-Cal Program and health insurers, to adopt 
        payment policies to compensate health care providers for telehealth. 
         

         FISCAL EFFECT  :  According to the Senate Appropriations Committee, to 
        the extent that this bill would increase the number of visits or 
        services for which Medi-Cal pays, there could be a significant 
        increase in costs to the Medi-Cal Program.  However, to the extent 
        that this bill would enable an individual to receive necessary care 
        at the right time and contribute to an overall improvement in or 
        maintenance of an individual's health and to the prevention of 
        disease over-time, then there could be long-term cost avoidance.

         COMMENTS  :  According to the author, in 1996 California was the first 
        state to pass legislation that, among other things, established 
        telemedicine as a legitimate means of receiving health care 
        services, and provided parameters for reimbursement in both private 
        and public health coverage plans.  The provisions are outdated and 
        may inhibit the full adoption of telehealth in this state and the 
        potential benefits (e.g., reducing costs, increasing access and 
        improving the quality of care it can offer).


         Analysis Prepared by  :    Teri Boughton / HEALTH / (916) 319-2097 


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