BILL ANALYSIS Ó AB 415 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 415 (Logue) As Amended September 2, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |76-0 |(June 1, 2011) |SENATE: |35-0 |(September 7, | | | | | | |2011) | ----------------------------------------------------------------- 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 Page 2 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 AS PASSED BY THE ASSEMBLY , this bill updated and defined terminology in existing law, repealed written informed consent requirements related to telemedicine, required health plans, including those that contract with the Medi-Cal Program and health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 FN: 0002707