BILL ANALYSIS                                                                                                                                                                                                    Ó



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          ASSEMBLY THIRD READING
          AB 2034 (Fuentes)
          As Amended  May 25, 2012
          Majority vote 

           HEALTH              17-0        APPROPRIATIONS      17-0        
           
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          |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. 








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          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 








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          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








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