BILL ANALYSIS Ó AB 2034 Page 1 ASSEMBLY THIRD READING AB 2034 (Fuentes) As Amended May 25, 2012 Majority vote HEALTH 17-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Monning, Logue, Ammiano, |Ayes:|Fuentes, Harkey, | | |Atkins, Bonilla, Eng, | |Blumenfield, Bradford, | | |Gordon, Hayashi, Roger | |Charles Calderon, Campos, | | |Hernández, Bonnie | |Davis, Donnelly, Gatto, | | |Lowenthal, Mansoor, | |Ammiano, Hill, Lara, | | |Mitchell, Nestande, Pan, | |Mitchell, Nielsen, Norby, | | |V. Manuel Pérez, Silva, | |Solorio, Wagner | | |Williams | | | | | | | | ----------------------------------------------------------------- SUMMARY : Requires the Department of Health Care Services (DHCS), in consultation with the California Health Benefits Exchange, to develop a plan for the Genetically Handicapped Person's Program (GHPP) after implementation of the federal Patient Protection and Affordable Care Act (ACA). Specifically, this bill : 1)Requires DHCS to develop the plan in consultation with the GHPP Advisory Committee or an alternative group of stakeholders. 2)Requires the plan to address the following: a) Preserving the availability of services that are currently available under the GHPP program, but may not continue to be otherwise available; b) Continued coverage to populations that are not covered by the ACA; and, c) Adding genetic amyotrophic lateral sclerosis (ALS) to the GHPP list of conditions. Requires the care and treatment of ALS to be consistent with existing legislative intent and findings including the designation of an ALS Association Certified Center as a "Specialty Care Center" for specified purposes. AB 2034 Page 2 3)Requires the plan in 2) above to be submitted to the relevant fiscal and policy committees by July 1, 2013. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Costs to DHCS of at least $50,000 (50% General Fund (GF), 50% federal funds) to conduct a stakeholder process and develop a plan addressing the specified requirements. 2)By implying reduced administrative and legislative flexibility to modify the program in light of the ACA, this bill creates continuing GF cost pressure on the state to continue and expand GHPP. COMMENTS : According to the author, the purpose of this bill is to provide access to aggressive multidisciplinary care for ALS patients through a multi-disciplinary medical facility such as the ALS Centers of Excellence. The author argues that this care would help extend the patient's life, reduce hospital admissions and improve the quality of life for the patient and family. According to the author, the progression of the disease involves a patient gradually losing the ability to use their voluntary muscles. They cannot move or communicate; although their mental facilities are completely intact and they are aware of everything, but unable to communicate in any way. For many patients, the one drug approved by the federal Food and Drug Administration for the treatment of ALS shows little if any efficacy in slowing the progression of the disease. As a result, the focus of intervention for ALS patients is managing the effects of the disease progression. According to the author, services like nursing home health visits are especially necessary for ALS patients in a later stage of the disease, who are ultimately unable to go to the Specialty Care Centers. This bill would assist those patients who forego treatment because they lack financial resources to seek medical help. According to the Muscular Dystrophy Association, without assistive technologies such as mechanical ventilation and feeding tubes, the average life expectancy is three to five years after an ALS diagnosis and about 4-10% live more than 10 years. According to the ALS Association, the majority of patients with adult-onset ALS, (90%) have no family history of ALS and present as an AB 2034 Page 3 isolated case. ALS is directly hereditary in only a small percentage of families. Objective identification by genetic mutation is not well enough developed to be determinative of the distinction between the two types of ALS and currently family history is the best tool for diagnosis. GHPP, established in 1975, provides comprehensive health care coverage for persons with specified genetic diseases including cystic fibrosis; hemophilia; sickle cell disease and thelassemia; chronic degenerative neurologic diseases including Huntington's Disease, Friedrieich's Ataxia, and Joseph's Disease; and metabolic diseases including phenylketonuria. GHPP also provides access to social support services that may help ameliorate the physical and psychological problems attendant to genetically handicapping conditions. GHPP clients with other health coverage, such as private insurance may apply for GHPP benefits; however GHPP will only cover limited services. These include an annual outpatient Special Care Center assessment, evaluation and case conference and services not covered by the health plan. Clients with Medicare may also apply, however the Medicare Part A (hospital care) or Part B (medical services) must be billed first and prior authorization must be obtained from the GHPP. Clients with Medi-Cal may apply for GHPP benefits. Medi-Cal clients, including those enrolled in a Medi-Cal Managed Care plan, will receive the same services they are receiving from Medi-Cal in addition to the services available through the GHPP. An example of an additional service is Special Care Center services. Once the Medi-Cal clients are enrolled into this program, GHPP will case manage their case. Clients who are eligible for Medi-Cal and Medicare (dual eligibles) must enroll in Medicare Part D for drug coverage. For clients who are Medicare only, Part D enrollment is optional, however once enrolled clients are only eligible for medications specifically excluded from coverage by Medicare Part D. The Governor's May revision to the proposed fiscal year 2012-13 budget proposes to eliminate the GHPP Advisory Committee. Analysis Prepared by : Marjorie Swartz / HEALTH / (916) 319-2097 FN: 0003950 AB 2034 Page 4