BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 1208 AUTHOR: Pan AMENDED: May 9, 2013 HEARING DATE: June 26, 2013 CONSULTANT: Marchand SUBJECT : Medical homes. SUMMARY : Establishes the Patient Centered Medical Home Act of 2013, which defines "medical home" and "patient centered medical home" as a health care delivery model in which a patient establishes a relationship with a licensed health care provider in a physician-led practice team to provide comprehensive, accessible, and continuous primary and preventive care, and to coordinate the patient's health care needs across the health care system. Existing law: 1.Establishes the "Bridge to Reform Demonstration Project," under which coverage is expanded to eligible low income adults through the Low Income Health Program (LIHP). 2.Requires one of the elements of a LIHP participating in the above demonstration project to be the assignment of eligible individuals to a medical home. A "medical home," for purposes of this demonstration project, is defined as a single provider, facility, or health care team that maintains an individual's medical information, and coordinates health care services for enrolled individuals. Requires the medical home to provide certain specified elements, including the following: a. A primary health care contact who facilitates the enrollee's access to preventive, primary, specialty, mental health, or chronic illness treatment, as appropriate; b. An intake assessment of each new enrollee's general health status; c. Referrals to qualified professionals, community resources, or other agencies; d. Care coordination for the enrollees across the service delivery system, as agreed to between the medical home and the LIHP; Continued--- AB 1208 | Page 2 e. Use of clinical guidelines and other evidence-based medicine when applicable for treatment of the enrollee's health care issues and timing of clinical preventive services; f. Focus on continuous improvement in quality of care; and, g. Health information, education, and support to beneficiaries and, where appropriate, their families, if and when needed, in a culturally competent manner. This bill: 1.Establishes the Patient Centered Medical Home Act of 2013, and requires medical homes to include various specified requirements unless otherwise provided by statute. 2.Defines "medical home" and "patient centered medical home" (PCMH) as a health care delivery model in which a patient establishes an ongoing relationship with a personal primary care physician or other licensed health care provider acting within the scope of his or her practice. 3.Specifies that the personal provider works in a physician-led practice team to provide comprehensive, accessible, and continuous evidence-based primary and preventative care, and to coordinate the patient's health care needs across the health care system in order to improve quality and health outcomes in a cost-effective manner. 4.Requires a PCMH to stress a team approach to providing comprehensive health care that fosters a partnership among the patient, the licensed health care provider acting within his or her scope of practice, other health care professionals, and, if appropriate, the patient's family or the patient's representative, upon the consent of the patient. 5.Requires individual patients in a PCMH to have an ongoing relationship with a physician or other licensed health care provider acting within his or her scope of practice, who is trained to provide first contact and continuous and comprehensive care, or if appropriate, provide referrals to health care professionals that provide continuous and comprehensive care. 6.Requires a provider in a PCMH, working in concert with a multidisciplinary team of individuals at the practice level, to take responsibility for the ongoing health care of patients, including appropriately arranging health care by AB 1208 | Page 3 other qualified health care professionals and making appropriate referrals. 7.Requires care in a PCMH to be coordinated and integrated across all elements of the complex health care system, including mental health and substance use disorder care, and the patient's community. 8.Requires care in a PCMH to be facilitated by health information technology, such as electronic medical records, electronic patient portals, health information exchanges, and other means, to ensure that patients receive the indicated care when and where they need and want this care, in a culturally and linguistically appropriate manner. 9.Requires the PCMH payment structure to be designed to reward the provision of the right care in the right setting, and to discourage the delivery of too much or too little care. 10.Requires the PCMH payment structure to encourage appropriate management of complex medical cases, increased access to care, the measurement of patient outcomes, continuous improvement of care quality, and comprehensive integration and coordination across all stages and settings of a patient's care. 11.Requires all of the following quality and safety components to be incorporated into the PCMH: a. Advocacy for patients to support the attainment of optimal patient-centered outcomes that are defined by a care planning process driven by a compassionate, robust partnership between providers, the patient, and the patient's family or representative; b. Evidence-based medicine and clinical decision support tools to guide decision-making; c. The licensed health care providers in the practice accept accountability for continuous quality improvement through voluntary engagement in performance measurement and improvement; d. Active patient participation in decision-making, with feedback sought to ensure that the patient's expectations are being met; e. Information technology is utilized appropriately to support optimal patient care, performance measurement, patient education, and enhanced communication; and, AB 1208 | Page 4 f. Patients and families or representatives participate in quality improvement activities at the practice level. 12.Requires patients in a PCMH to be provided with enhanced access to health care that meets the requirements of a nationally recognized, independent medical home accreditation agency. 13.Prohibits anything in this bill from being construed to do any of the following: a. Permit a PCMH to engage in or otherwise aid and abet in the unlicensed practice of medicine, either directly or indirectly; b. Change the scope of practice of physician, nurse practitioners, or other health providers; c. Affect the ability of a nurse to operate under standardized procedures, as specified; d. Require adherence to the Low Income Health Program, as specified, including the program's provider network and service delivery system, or to activities conducted as part of a demonstration project developed under the Health Care Coordination, Improvement, and Long-Term Cost Containment Waiver; or e. Prevent or limit participation in activities authorized by specified provisions of the federal Patient Protection and Affordable Care Act (ACA), if the participation is consistent with state law pertaining to scope of practice. FISCAL EFFECT : This bill has been keyed non-fiscal. PRIOR VOTES : Assembly Health: 17- 2 Assembly Floor: 62- 12 COMMENTS : 1.Author's statement. According to a May 2013 Policy Brief by the UCLA Center for Health Policy Research, the success of health care reform implementation in 2014 partly depends on more efficient delivery of care to the millions of California residents eligible to gain insurance. The Policy Brief indicates that there is evidence that the medical home model improves health outcomes and reduces costs. By adding a PCMH definition, this bill ensures uniform standards of quality and access, encourages health care providers to work as a team to AB 1208 | Page 5 provide patient-centered care and promotes a more efficient delivery of care. Additionally, adding a PCMH definition sends an important signal to health care providers and patients that California supports: a) care that is patient-centered, cost-efficient, continuous, focused on prevention, and based on sound, evidence-based medicine rather than episodic, illness-oriented "siloed" care; and b) a health care team (doctors, nurses, physician assistants, medical assistants, mental health providers, community health workers, social workers, etc.) working in partnership with one another, their patients and their patients' families to coordinate care, navigate the complex and often confusing health care system and ensure that patients receive the right care at the right time. 2.Affordable Care Act. The ACA contained several provisions to support and advance the medical home model of care. One of these was entitled, "Establishing Community Health Teams to Support the Patient-Centered Medical Home." This is a grant program to help establish community-based interdisciplinary, interprofessional teams to support primary care practices, and requires grants to be used to establish health teams to provide support services to primary care providers and provide capitated payments to primary care providers. Under this program, patient-centered medical home is defined as a model of care that includes the following: 1) personal physicians; 2) whole person orientation; 3) coordinated and integrated care; 4) safe and high-quality care through evidence-informed medicine, appropriate use of health information technology, and continuous quality improvements; 5) expanded access to care; and, 6) payment that recognizes added value from additional components of patient-centered care. Another provision of the ACA, entitled "State Option to Provide Health Homes for Enrollees with Chronic Conditions," established a waiver program to give states the option of enrolling Medicaid beneficiaries with chronic conditions into a health home. "Health home," for purposes of this program, is defined as "a designated provider (including a provider that operates in coordination with a team of health care professionals) or a health team selected by an eligible individual with chronic conditions to provide health home services." The term "designated provider" is defined as a physician, clinical practice or clinical group practice, rural clinic, community health center, community mental health AB 1208 | Page 6 center, home health agency, or any other entity or provider (including pediatricians, gynecologists, and obstetricians) that is determined by the State and approved by the Secretary to be qualified to be a health home for eligible individuals with chronic conditions." This waiver program would provide a 90 percent federal match for the first two years. States are permitted to tier payments to reflect a team of health care professionals operating with a designated provider, as well as the severity or number of individual's with chronic conditions or the specific capabilities of the designated provider and health team. "Health home services" is defined as comprehensive and timely high-quality services that are provided by a designated provider or a team of health care professionals operating with a designated provider and include: 1) comprehensive care management; 2) care coordination and health promotion; 3) comprehensive transitional care, including appropriate follow-up, from inpatient to other settings; 4) patient and family support; 5) referral to community and social support services; and 6) use of health information technology to link services. 3.Background on the medical home model. According to a September 2012 brief prepared by the National Conference of State Legislatures (NCSL), the medical home model of care offers one method of transforming the health care delivery system. Medical homes can reduce costs while improving quality and efficiency through an innovative approach to delivering comprehensive patient-centered preventive and primary care. Also known as the PCMH, this model is designed around patient needs and aims to improve access to care (e.g. through extended office hours and increased communication between providers and patients via email and telephone), increase care coordination and enhance overall quality, while simultaneously reducing costs. The medical home relies on a team of providers-such as physicians, nurses, nutritionists, pharmacists, and social workers-to meet a patient's health care needs. Studies have shown that the medical home model's attention to the whole-person and integration of all aspects of health care offer potential to improve physical health, behavioral health, access to community-based social services and management of chronic conditions. NCSL notes that although general agreement exists about the basic tenets of the medical home, the model is still evolving. Not all medical homes look alike or use the same strategies to reduce costs, improve quality and coordinate care. AB 1208 | Page 7 Accreditation offers formal recognition and a stamp of approval to those that successfully meet specific standards and requirements, facilitating payment from both public and private payers. Medical home accreditation is available from national accreditation organizations, as well as a few states that have developed their own standards. Although certain health care providers already embody many elements of the PCMH, many are seeking formal recognition, due in part to the fact that medical practices that participate in medical home pilot programs often qualify for enhanced reimbursement rates, or receive other financial incentives for coordinating care. According to NCSL, as of January 2012, 41 states had policies promoting the medical home model for certain Medicaid or Children's Health Insurance Program beneficiaries. States have created pilot projects, reformed payment structures, invested in health information technology, restructured Medicaid provider systems, and included the medical home model in service delivery. 4.Related legislation. AB 361 (Mitchell) authorizes the Department of Health Care Services (DHCS) to submit State Plan Amendments to the federal Centers for Medicare and Medicaid Services for approval to create a California Health Home Program to provide health home services to adults and children in the Medi-Cal program. AB 361 defines a "health home" as a provider or team of providers that meets federal guidelines and that offers a whole person approach and offers services in a range of settings. AB 361 permits DHCS to require a lead provider to be a physician, a community clinic, a mental health plan, a community-based nonprofit organization, a county health system, a substance use disorder treatment professional or facility, or a hospital. AB 361 is scheduled to be heard in this committee on July 3. 5.Prior legislation. AB 2266 (Mitchell) of 2012, would have required DHCS to establish a program to provide specified health home services, with the intent of reducing avoidable hospitalization or use of emergency medical services. AB 2266 died on the Senate Inactive File. SB 393 (Ed Hernandez) would have enacted the PCMH Act of 2012 and established a definition for a medical home based upon specified standards. SB 393 was vetoed by the Governor. In his veto message, the Governor stated that he commended the AB 1208 | Page 8 author for trying to improve the delivery of health care by encouraging the greater use of "patient-centered medical homes," but because the concept is still evolving, he thought more work was needed before the definition was codified. AB 1542 (Jones) of 2010, would have defined a PCMH to mean, in part, a health care delivery model in which a patient establishes an ongoing relationship with a physician or other licensed health care provider, working in a physician-directed practice team to provide comprehensive, accessible, and continuous evidence-based primary care and coordinate the patient's health care needs across the health care system. AB 1542 died on the Assembly Floor. SB 1738 (Steinberg) of 2008, would have required DHCS to establish a three-year pilot program to provide intensive multidisciplinary services to 2,500 Medi-Cal beneficiaries identified as frequent users of health care. SB 1738 was vetoed by Governor Schwarzenegger. 6.Support. This bill is co-sponsored by the California Academy of Family Physicians (CAFP), the California Medical Association (CMA), and the California Academy of Physician Assistants (CAPA), and supported by numerous other provider organizations and other groups. CAFP states that the goal of the medical home is to provide a patient with a broad spectrum of coordinated care. More than 40 states have adopted medical home legislation, but CAFP states that California has been slow to act. With the number of Americans with one or more chronic diseases projected to increase from 125 million in 2000 to 157 million in 2020, CAFP asserts that it is more important than ever to ensure adequate management of these conditions. CMA states that this bill is a critical piece of California's effort to move into the future of healthcare delivery. According to CMA, in the years to come, as federal health reform is implemented and states work on ways to deliver higher quality, more efficient care to patients, better care coordination will be key. CMA states that while establishing PCMH's is a primary means of streamlining the system and improving individual health outcomes, not all "medical homes" are created equal and this bill will help to provide necessary parameters by defining "medical home" in state law. CMA states that medical home models have proven successful only when they operate with the involvement of a patient's entire care team, and that physicians play a fundamental role in successful medical homes and help to AB 1208 | Page 9 ensure that all of a patient's care needs are effectively addressed and coordinated. CAPA states that this bill will encourage health care providers and patients to partner in a PCMH that promotes access to high-quality, comprehensive and coordinated care. According to CAPA, developing a standard definition for PCMH's could help reduce disparities, rein in costs and improve quality and outcomes in health care. 7.Opposition. The California Right to Life Committee (CRLC) states in opposition that it is concerned that in the course of years, usage of the term "medical home" includes school based clinics. According to CRLC, there are school districts in California which have school- based clinics and offer family planning and abortion referrals to minors without parental consent. With school-based clinics or "wellness centers" under the domain of "medical homes," students would be vulnerable to suggestions or requests to accept family planning and abortion referrals, without parental involvement. CRLC also states that this bill appears to be a California measure to mesh with the federal ACA and to have the medical profession participate in a centralized government record keeping on every individual's health, nutrition and exercise, using community care standards instead of what may be best for the individual. 8.Author's amendment to remove accreditation language. One of the provisions of this bill requires patients in a PCMH to be provided with enhanced access to health care that "meets the requirements of a nationally recognized, independent medical home accreditation agency." The author intends to offer amendments in committee to delete the language referencing accreditation, so that this provision will just require patients to be provided with enhanced access to health care. 9.Drafting concern. One of the provisions in this bill specifies that nothing should be construed as "requiring adherence to the Low Income Health Program" (LIHP), as specified, "or to activities conducted as part of a demonstration project developed under the Health Care Coordination, Improvement, and Long-Term Cost Containment Waiver." The author indicates that this provision is intended to exempt LIHP's and the specified demonstration project activities from having to comply with the requirements of this bill, but that is not the way this provision is drafted. To reflect the author's intent, this provision should be amended so that nothing in this bill shall AB 1208 | Page 10 be construed to "apply to" the LIHP and specified demonstration project activities. SUPPORT AND OPPOSITION : Support: California Academy of Physician Assistants (co-sponsor) California Academy of Family Physicians (co-sponsor) Alzheimer's Association American Osteopathic Association California Black Health Network California Association of Physician Groups California Chiropractic Association California Council of Community Mental Health Agencies California Coverage and Healthcare Initiatives California Optometric Association California Primary Care Association California Society of Health-System Pharmacists Children Now Children's Defense Fund California Children's Partnership Children's Specialty Care Coalition Mental Health America of California Osteopathic Physicians and Surgeons of California PICO California United Ways of California 100% Campaign Oppose: California Right to Life Committee, Inc. -- END --