BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2253
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          Date of Hearing:  May 8, 2012

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                  AB 2253 (Pan) - As Introduced:  February 24, 2012
           
          SUBJECT  :  Clinical laboratory test results: electronic 
          conveyance.

           SUMMARY  :  Authorizes the conveyance of clinical laboratory test 
          results (lab test results) relating to human immunodeficiency 
          virus (HIV) antibody test, presence of antigens indicating a 
          hepatitis infection, abusing the use of drugs, or test results 
          related to routinely processed tissues that reveal malignancy, 
          as specified, by Internet posting or other electronic means to a 
          patient where the patient requests a conveyance, the health care 
          professional deems the conveyance as the most appropriate means, 
          and a health care professional has first discussed the results 
          with the patient.  

           EXISTING LAW  :  

          1)Provides that a patient authorized by law to consent to 
            medical treatment, and any patient representative, shall be 
            entitled to inspect patient records upon presenting to the 
            health care provider a written request for the records, and 
            upon payment of reasonable costs, as specified.  Provides that 
            a health care provider must permit the inspection during 
            business hours within five working days after receipt of the 
            written request.  States that the costs of copying shall not 
            exceed $0.25 per page or $0.50 per page for records that are 
            copied from microfilm and any additional reasonable clerical 
            costs, as specified. 

          2)Requires a health care professional at whose request a test is 
            performed to provide or arrange for the provisions of the 
            results of a clinical laboratory test to the patient who is 
            the subject of the test if requested by the patient, in plain 
            language in oral or written form.  Authorizes the results to 
            be conveyed in electronic form if requested by the patient and 
            if deemed most appropriate by the health care professional who 
            requested the test.

          3)Requires that the consent of the patient to receive his or her 
            laboratory results by Internet posting or other electronic 








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            means to be obtained in a manner consistent with specified 
            requirements.  

          4)Provides that if a health care professional arranges for the 
            provision of test results by Internet posting or other 
            electronic manner, the results shall be delivered to a patient 
            in a reasonable time period, but only after the results have 
            been reviewed by the health care professional.  States that 
            access to clinical laboratory test results shall be restricted 
            by the use of a secure personal identification number when the 
            results are delivered to a patient by Internet posting or 
            other electronic manner. 

          5)Indicates that the test results to be reported to the patient 
            must be recorded in the patient's medical record, and must be 
            reported to the patient within a reasonable time period after 
            the test results are received at the offices of the health 
            care professional who requested the test.

          6)Prohibits the conveyance to a patient by Internet posting or 
            other electronic means for the following clinical laboratory 
            test results: HIV antibody test, presence of antigens 
            indicating hepatitis infection, abusing the use of drugs, or 
            test results related to routinely processed tissues, including 
            skin biopsies, Pap smear tests, products of conception, and 
            bone marrow aspirations for morphological evaluation, if they 
            reveal a malignancy.

          7)States that patient identifiable test results and health 
            information shall not be used for any commercial purpose 
            without the consent of the patient, as specified. 

          8)Defines health care provider to include a licensed health 
            facility, clinic, home health agency, physician and surgeon, 
            podiatrist, dentist, and optometrist.

          9)Specifies that an electronic health record (EHR) system or 
            electronic medical record (EMR) system shall: a) protect and 
            preserve the integrity of medical information; b) 
            automatically record and preserve any change or deletion of 
            any electronically stored medical information, as specified; 
            and, c) a patient's right to access or receive a copy of his 
            or her EMR upon request shall be consistent with applicable 
            state and federal laws governing patient access to, and the 
            use and disclosure of, medical information.








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           FISCAL EFFECT  :  None

          COMMENTS  :

           1)PURPOSE OF THIS BILL  .  The author is the sponsor of this 
            measure.  According to the author, this bill is necessary to 
            remove barriers for patients in accessing lab test results 
            relating to HIV, hepatitis, abuse of drugs, and certain 
            processed tissues, through an Internet posting or other 
            electronic format.  Federal regulators are easing the 
            requirements for patients to directly access their clinical 
            lab results, and California's prohibition on access to these 
            specific lab results is hindering the widespread use of EHR.  
            Additionally, the federal stimulus program, the American 
            Recovery and Reinvestment Act of 2009 (ARRA), signed by 
            President Obama in 2009 is offering incentive payments to 
            eligible professionals and hospitals that implement meaningful 
            use of EHRs.  This bill would assist eligible professionals 
            and hospitals to qualify for these incentive payments while 
            allowing patients to take an active role in their health care.

           2)BACKGROUND  .  

              a)   Patient Access to Clinical Laboratory Test Results  .  
               State and federal laws govern the release of patient 
               medical information, including those of lab test results.  
               California entitles patients to the right to inspect and 
               copy their patient records upon written request and payment 
               of reasonable costs incurred in locating and making the 
               records available.  Patients are also authorized to obtain 
               the results of lab test results performed at the request of 
               a health care professional.  These lab test results may 
               also be conveyed in electronic form if requested by the 
               patient and deemed appropriate by the health care 
               professional who requested the test.  However, lab test 
               results relating to HIV antibody tests, presence of 
               antigens indicating a hepatitis infection, abusing the use 
               of drugs, or test results related to routinely processed 
               tissues that reveal malignancy cannot be conveyed to a 
               patient by Internet posting or other electronic means.

             The federal Clinical Laboratory Improvement Amendments of 
               1988 (CLIA), administered by the Centers for Medicare and 
               Medicaid Services (CMS), established standards for all 








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               clinical laboratory testing, and included provisions 
               relating to the reporting out of lab test results.  Current 
               CLIA regulations limit a laboratory's disclosure of lab 
               test results to three categories of individuals: i) the 
               "authorized person;" ii) the person responsible for using 
               the test results for treatment; and, iii) the referring 
               lab.  An "authorized person" is defined as the individual 
               under state law who is authorized to order or receive test 
               results, or both.  Under this definition, CLIA defers to 
               state law on the release of these results.

             The federal Health Insurance Portability and Accountability 
               Act of 1996 (HIPAA), established national standards to 
               protect the privacy and security of personal health 
               information.  Among other provisions, HIPAA's Standards for 
               Privacy of Individually Identifiable Health Information 
               (Privacy Rule) provides individuals with a general right of 
               access to inspect and obtain a copy of his/her protected 
               health information, including laboratory test reports, 
               which are part of an individual's medical records.  
               However, HIPAA's Privacy Rule does not apply to protected 
               health information maintained by a CLIA covered entity 
               where state law prohibits access.  

              b)   ARRA and Patient Access to Lab Test Results  .  On 
               February 2009, President Obama signed ARRA aimed at 
               stimulating the economy, and included various provisions 
               including the establishment of the Office of the National 
               Coordinator for Health Information Technology (ONC) to 
               facilitate and expand the use of health information 
               technology (HIT) according to nationally established 
               standards.  ARRA also incorporated the Health Information 
               Technology for Economic and Clinical Health Act (HITECH) 
               which included a number of funding opportunities to advance 
               HIT, and support the adoption of EHR.  To improve and 
               increase the use of EHRs, HITECH created a federal 
               incentive payments program for eligible professionals 
               (generally doctors), and hospitals when they adopt EHRs and 
               demonstrate use in ways that can improve quality, safety, 
               and effectiveness of care.   Eligible professionals can 
               receive as much as $44,000 over a five-year period through 
               Medicare.  For Medicaid, eligible professionals can receive 
               as much as $63,750 over six years for adopting, 
               implementing, and upgrading certified EHR technology but 
               must demonstrate meaningful use in subsequent years in 








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               order to qualify for additional payments.  To satisfy the 
               meaningful use requirement and qualify for payments, an 
               eligible professional must demonstrate the use of certified 
               EHR technology in a meaningful manner, including the use of 
               electronic prescribing, provide for the electronic exchange 
               of health information to improve the quality of health 
               care, such as promoting care coordination, and submission 
               of quality measures, as specified.  To qualify for the 
               incentive payments, the certified technology must include 
               patient demographic and clinical health information, such 
               as medical history and problem lists, and have the capacity 
               to provide clinical decision support to assist physician 
               order entry, capture and query information relevant to 
               healthcare quality, and exchange electronic health 
               information with, and integrate such information from other 
               sources.  ARRA also includes provisions relating to privacy 
               and security of EHR, and provides that an individual has a 
               right to access certain information about him/her in 
               electronic format.

             HITECH also created a Federal Advisory Committee known as the 
               Health Information Technology Policy Committee (Committee) 
               to identify barriers to the adoption and use of HIT.  Among 
               other efforts, Committee members and stakeholders perceived 
               CLIA regulations as imposing barriers to the exchange of 
               HIT, specifically certain limitations on an individual's 
               access to his or her own records, preventing patients from 
               taking a more active role in their personal health care 
               decisions.  As a result, CLIA staff worked with the ONC and 
               CMS and concluded that provision of direct patient access 
               to lab test results would support the commitments and goals 
               of the U.S. Department of Health and Human Services (HHS) 
               and CMS on the widespread adoption of EHRs.  On July 14, 
               2010, HHS issued a proposed rule to implement most of the 
               privacy and security provisions of HITECH, including those 
               provisions strengthening an individual's right to receive 
               an electronic copy of his or her protected health 
               information, where such information is maintained 
               electronically in one or more designated record sets.  On 
               September 14, 2011, proposed rules were enacted to amend 
               CLIA to specify that, upon a patient's request, a 
               laboratory may provide access to completed test reports 
               that, using the laboratory's authentication process, can be 
               identified as belonging to a particular patient.  The 
               proposed rules would also amend HIPAA's Privacy Rule to 








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               provide individuals the right to receive their test reports 
               directly from laboratories by removing the exceptions for 
               CLIA laboratories.  These proposed rules are currently 
               pending.  

             Recognizing the disparity among states in allowing patient 
               access to lab test results, the proposed rules also 
               contained a specific preemption language.  The proposed 
               rules indicate that "a number of states have laws that 
               prohibit a laboratory from releasing a test report directly 
               to the patient or that prohibit the release without the 
               ordering provider's consent.  If adopted, the proposed 
               changes to HIPAA's Privacy Rule would preempt any contrary 
               State laws that prohibit the HIPAA-covered laboratory from 
               directly providing access to the individual."  

              c)   Paper on Electronic Release of Clinical Lab Results  .  In 
               January 2010, the California HealthCare Foundation released 
               a study entitled "Electronic Release of Clinical Laboratory 
               Results: A Review of State and Federal Policy" (CHCF 
               paper).  The CHCF paper conducted a review of state laws 
               and interviews with key stakeholders to determine policy 
               issues and challenges related to electronically sharing of 
               lab test results.  The research suggests that about 70% to 
               80% of data contained in a medical record consists of lab 
               records and results, and that 70% of clinical decision 
               making is based on or assisted by lab test results.  The 
               CHCF paper stated that although many electronic health 
               information exchanges currently identify the sharing of lab 
               test results as a priority, the legal and policy framework 
               that permits these exchanges is not clear.  The release of 
               lab results are governed by CLIA, HIPAA, and numerous 
               state-specific medical release and lab licensing laws which 
               are subject to disparate interpretation by various 
               stakeholders.

             The CHCF paper analyzed the licensing statutes and 
               regulations of various states, including California.  The 
               CHCF paper indicated that the licensing statutes and 
               regulations of 26 states and territories are silent with 
               respect to who is authorized to receive lab test results.  
               Licensing laws in the remaining 29 states and territories 
               expressly address who is authorized to receive these lab 
               results.  Among these 29 states and territories, the CHCF 
               paper identified six general categories of entities to 








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               which clinical laboratories may release lab test results: 
               i) the authorized person who requested the test; ii) 
               persons authorized to use, receive, or responsible for 
               using or receiving test results; iii) the agent or designee 
               of the person who requested the test or who is authorized 
               to receive the test; iv) those directed by the person who 
               requested the test; v) the patient (with no other 
               permission required); and, vi) the patient only with the 
               permission of the person who ordered the test.
             The CHCF paper identified several policy considerations, 
               including the need for appropriate mechanisms and 
               timeframes to allow patients to access their health care 
               information, including lab results since patients are 
               increasingly involved in and responsible for managing their 
               own care.  Additionally, it states that as the federal 
               government invests in EHRs through the ARRA initiatives, 
               the meaningful use requirements for providers eligible to 
               receive incentives have many EHR vendors rapidly adapting 
               their systems to comply.

              d)   Justification for the Release of Lab Test Results  .  An 
               article published by Kaiser Health News (KHN) entitled 
               "Both Patients and Physicians Can Suffer When Test Results 
               Aren't Reported" tells the story of a patient who had a 
               year-long delay in her breast cancer diagnosis when her 
               test results were mistakenly sent to another provider and 
               she did not have access to the results.  The KHN article 
               points out that aside from the medical consequences that 
               are sometimes life altering, there are financial 
               consequences for providers when tests are not promptly 
               reported.  KHN points to a recent study in the Journal of 
               American College of Radiology (JACR study) which found that 
               annual medical malpractice payouts for communication 
               breakdowns, including failing to share test results, more 
               than quadrupled nationally between 1991 and 2010, from $22 
               million to $91 million.  The JACR study examined medical 
               malpractice claims from 425 hospitals and 52,000 providers. 
                Of the 306 cases in which test results were specifically 
               cited as a factor in a malpractice case, the most common 
               problem was that the patient did not receive the test 
               results (143 cases); and the second most common problem was 
               that the clinician did not receive the results, (110 
               cases).  Other problems included delays and slow turnaround 
               in reporting findings and test results that were filed 
               before the clinician reviewed them.  The article also 








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               pointed out that since physicians, specifically primary 
               care doctors are often reviewing hundreds of test results 
               in a given week, patient follow-up and access becomes 
               significant.

           3)SUPPORT  .  The California Society of Pathologists states that 
            this measure is a step towards greater patient involvement in 
            their healthcare and the use of electronic medical records.  

           4)OPPOSE UNLESS AMENDED  .  The American Civil Liberties Union of 
            California has an oppose unless amended position and 
            recommends that the authorization for the release in 
            electronic conveyance be made in writing to ensure that the 
            patient understands and agrees to receive the results 
            electronically.  
           
           5)AMENDMENTS REQUESTED  .  The Clinical Laboratory Association 
            requests an amendment to delete the current prohibition in law 
            relating to the release of lab test results relating to HIV, 
            hepatitis, abuse of drugs, and certain processed tissues 
            because federal regulation will already require that all lab 
            results be made available directly to patients and is expected 
            to be enacted this year and would preempt all state laws.

           6)POLICY CONSIDERATIONS  .   Should California law authorize 
            patient access to lab test results in electronic form without 
            conditions?   As indicated above, lab test results performed at 
            the request of a health care professional may be conveyed to 
            the patient in electronic form if requested by the patient and 
            if deemed most appropriate by the health care professional.  
            Additionally, test results can be delivered to the patient 
            only after the results have been reviewed by the health care 
            professional.  Since federal laws (CLIA and HIPAA) are 
            proposed to be amended to allow patient access to lab test 
            results, and the federal government continues to invest in 
            EHRs, consideration should be given as to whether existing 
            limitations making patient access to lab test results 
            dependent on the approval of a health care professional is 
            still a sound policy.  If the federal rules become final as 
            they are proposed, it appears these rules should preempt 
            California law.

          Moreover, the amendments proposed by this bill would allow test 
            results relating to HIV, hepatitis, abuse of drugs and 
            malignant tissue to be conveyed to patients in the same way as 








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            any other lab test result; this raises the question as to why 
            existing law's carve-out for these results is even necessary.
           
          REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Society of Pathologists

           Opposition 
           
          None of file.
           
          Analysis Prepared by  :    Rosielyn Pulmano / HEALTH / (916) 
          319-2097