BILL ANALYSIS                                                                                                                                                                                                    Ó






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                       Senator Ed Hernandez, O.D., Chair


          BILL NO:       SB 764                                      
          S
          AUTHOR:        Steinberg                                   
          B
          AMENDED:       April 14, 2011                              
          HEARING DATE:  May 4, 2011                                 
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          CONSULTANT:                                                
          6              
          Trueworthy                                                 
          4              
                                     SUBJECT
                                         
               Developmental services: Autism TeleHealth Program


                                     SUMMARY
                                         
          Requires the Department of Development Services to 
          implement the Autism TeleHealth Program (ATH) by requesting 
          proposals from, and executing memorandums of understanding 
          with, one or more regional centers that promote the use of 
          or utilize telehealth systems.


                             CHANGES TO EXISTING LAW  

          Existing law:
          Establishes the Telemedicine Development Act of 1996 and 
          imposes several requirements governing the delivery of 
          health care services through telemedicine, which is broadly 
          defined as the use of information technology to deliver 
          medical services and information from one location to 
          another.

          Further defines telemedicine as the practice of health care 
          delivery, diagnosis, consultation, treatment, transfer of 
          medical data, and education, using interactive audio, 
          video, or data communications.

          Establishes the Lanterman Development Disabilities Services 
                                                         Continued---



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          Act under Department of Development Services (DDS) which 
          sets out the rights and responsibilities of persons with 
          developmental disabilities, and creates the agencies, 
          including regional centers, responsible for planning and 
          coordinating services and supports for persons with 
          developmental disabilities and their families. 

          Establishes regional centers (RC), nonprofit private 
          corporations which contract with DDS to provide or 
          coordinate services and supports for individuals with 
          developmental disabilities.

          Requires coverage for diagnosis and medically necessary 
          treatment of severe mental illnesses, autism and pervasive 
          developmental disorders (A/PDD) for persons of any age 
          under California's mental health parity law.

          Prohibits health insurers and the Medi-Cal program from 
          requiring face-to-face contact between a patient and a 
          health care provider for services that may be appropriately 
          provided through telemedicine.

          Requires the Medi-Cal program to cover the appropriate use 
          of telemedicine for services that could otherwise be 
          covered by the Medi-Cal program.

          This bill:
          Establishes various definitions related to telehealth.

          Establishes the Autism TeleHealth Program (ATHP) under the 
          Department of Development Services (DDS).

          Requires the department to implement the ATHP program by 
          requesting proposals from, and executing memorandums of 
          understanding (MOUs) with, one or more regional centers 
          (RCs) that promote the use of or utilize telehealth systems 
          (THS). 

          Allows the department to enter into contracts or MOUs 
          directly with other entities such as federally qualified 
          health centers, community hospitals, or nonprofit 
          organizations.

          Requires proposals submitted and MOUs entered into to meet 
          certain standards as defined, and to include various 




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          components as defined.

          Requires regional centers participating in an MOU pursuant 
          to the bill to provide an annual report on the progress of 
          the program to the department

          Establishes the ATHP advisory board with members appointed 
          by the DDS director and outlines their various duties to 
          include providing assistance and expertise in the area of 
          THS.  Members of the advisory board are not compensated and 
          only receive reimbursement for travel expenses.

          Requires DDS to implement the ATHP program using existing 
          state General Fund resources but allows DDS to seek 
          additional funding from federal or public and private 
          sources.

          Sunsets the provisions of this bill on January 1, 2017.


                                  FISCAL IMPACT  

          This bill has not been analyzed by a fiscal committee.




                            BACKGROUND AND DISCUSSION  

          According to the author, the goal of SB 764 is to promote and 
          encourage the use of telehealth applications for the diagnosis 
          and treatment of Autism Spectrum Disorders (ASD) by DDS and RCs. 
           There are currently over 51,000 ASD consumers receiving 
          services through the state's RCs and there are not enough 
          programs and providers to serve these consumers, particularly in 
          remote communities and among underserved populations.  
          Telehealth applications have been established as highly 
          effective in providing access to services, especially in remote 
          and rural communities.  The author states that California has 
          been a leader in telehealth, and autism experts and healthcare 
          professionals have recommended that these applications and 
          systems be used for the evaluation and treatment of ASD.

          The author states that DDS and RCs face increasing 
          challenges to provide services that are mandated by the 




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          Lanterman Act, and funding ASD services is estimated to be 
          three to four times more costly than other developmental 
          disabilities.  Telehealth has the potential to provide 
          cost-effective services and treatments, and should also be 
          used to assist in providing services and support to RC 
          consumers and their families.  The author believes SB 764 
          will encourage public-private partnerships to bring 
          additional non-state funding and resources for the 
          development of telehealth applications for the diagnosis 
          and treatment of ASD.

          Autism
          Autism is a developmental disorder that appears in the 
          first three years of life and affects the brain's normal 
          development of social and communication skills.  Most 
          researchers believe autism is a physical condition linked 
          to abnormal biology and chemistry in the brain. The exact 
          causes of these abnormalities remain unknown.  According to 
          the sponsor, it is estimated that 1 in every 110 children 
          is diagnosed with autism, making it more common than 
          childhood cancer, juvenile diabetes and pediatric AIDS 
          combined.  An estimated 1.5 million individuals in the 
          U.S., and tens of millions worldwide, are 
          affected by autism.  Autism is now the second most common 
          childhood developmental disorder, behind only mental 
          retardation, and recent studies have shown that an average 
          of 1 percent of all children in the United States are 
          affected by ASD.

          Telehealth
          In 1996, California enacted the Telemedicine Development 
          Act of 1996 (Act) which defines telemedicine as "the 
          practice of health care delivery, diagnosis, consultation, 
          treatment, transfer of medical data, and education using 
          interactive audio, video, or data communications."

          The Act also prohibits health plans and health insurers, 
          public and private, from requiring face-to-face contact 
          between a patient and a provider for services appropriately 
          provided through telemedicine, including Medi-Cal.

          Subsequent telehealth legislation in California has amended 
          provisions of the Act, including a requirement that 
          Medi-Cal cover teleophthalmology and teledermatology 
          services delivered via store and forward technologies. 




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          Regional centers
          California has 21 regional centers that are nonprofit 
          private corporations that contract with DDS to provide or 
          coordinate services and supports for individuals with 
          developmental disabilities.  RCs provide diagnosis and 
          assessment of eligibility and help plan, access, coordinate 
          and monitor the services and supports that are needed 
          because of a developmental disability.  To be eligible for 
          services, a person must have a disability that begins 
          before the person's 18th birthday, expected to continue 
          indefinitely and that presents a substantial disability as 
          defined in current law.  Eligibility is established through 
          diagnosis and assessment performed at the RCs.

          Related bills
          AB 415 (Logue) makes numerous changes to state telemedicine 
          statutes, including changing references to "telemedicine" 
          to "telehealth," revising health plan, health insurance and 
          Medi-Cal provisions relating to telemedicine, and making 
          permanent Medi-Cal coverage for teleophthalmology and 
          teledermatology by store and forward.  AB 415 is scheduled 
          to be heard in the Assembly Health Committee on May 3, 2011

          SB 136 (Yee) extends, from January 1, 2013, to January 1, 
          2018, Medi-Cal coverage for teleophthalmology and 
          teledermatology by store and forward, where a physician or 
          optometrist is transmitted medical information for review 
          at a later time.  SB 136 will be heard in Senate Health 
          Committee on May 4, 2011.

          Prior legislation
          AB 2120 (Galgiani), Chapter 260, Statutes 2008, extended 
          authorization of the Medi-Cal "teleophthalmology and 
          teledermatology by store and forward" program, to the 
          extent federal financial participation is available until 
          January 1, 2013.



          AB 329 (Nakanishi), Chapter 386, Statutes of 2007, requires 
          the Medical Board of California (MBC) to establish a pilot 
          program to expand the practice of telemedicine in 




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          California, and authorizes the MBC to implement this pilot 
          program by convening a working group.


          AB 116 (Nakano), Chapter 20, Statutes of 2003, clarifies 
          that the Telemedicine Development Act applies to dentists, 
          podiatrists, psychologists, marriage and family therapists, 
          and clinical social workers, so that they may deliver 
          health care services using interactive audio, video, or 
          data communications without person to person contact.


          SB 1665 (Thompson), Chapter 864, Statutes of 1996, enacted 
          the Telemedicine Development Act of 1996, setting standards 
          for the use of telemedicine by health care practitioners 
          and insurers. Prohibited health insurers from requiring 
          face-to-face contact between a health care provider and 
          patient for services appropriately provided through 
          telemedicine, subject to the terms of the contract.

          Arguments in support
          The Children's Partnership states that telehealth is a 
          powerful and important tool that helps overcome major 
          obstacles low-income and underserved children and families 
          face in getting the health care and support services they 
          need.  Telehealth can be particularly beneficial for 
          children with developmental disabilities, such as autism, 
          and children with other special needs.  Supporters state 
          there is a significant shortage of pediatric subspecialists 
          in California and ATHP has the potential to benefit people 
          with autism who face geographic challenges in accessing 
          necessary services.  California has the opportunity to 
          reestablish itself as a leader in telehealth, and to 
          demonstrate how to uniquely harness technology to meet the 
          health and other needs of its most vulnerable children.  
          Supporters contend SB 764 will improve lives of the growing 
          number of children with autism by bringing care to them.  
          Disability Rights of California supports SB 764 and 
          requests the advisory board be required to include people 
          from rural areas.
                                        

                                     COMMENTS

           1.  Definitions.  AB 415 (Logue) includes a number terms 




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          and definitions that are also used in SB 764.  Currently 
          the definitions of the terms differ between the two bills.  
          Staff recommends that the terms in SB 764 be amended to be 
          consistent with AB 415.
                                         

                                   POSITIONS  

          Support:  The Children's Partnership
                    Disability Rights California

          Oppose:   None on file.


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