BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1208| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1208 Author: Pan (D) Amended: 7/2/13 in Assembly Vote: 21 SENATE HEALTH COMMITTEE : 8-1, 6/26/13 AYES: Hernandez, Anderson, Beall, De León, DeSaulnier, Monning, Pavley, Wolk NOES: Nielsen ASSEMBLY FLOOR : 62-12, 5/13/13 - See last page for vote SUBJECT : Medical homes SOURCE : California Academy of Family Physicians California Academy of Physician Assistants California Medical Association DIGEST : This bill establishes the Patient Centered Medical Home Act of 2013, which defines medical home and patient centered medical home (PCMH) 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. ANALYSIS : Existing law: CONTINUED AB 1208 Page 2 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; 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: CONTINUED AB 1208 Page 3 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" 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/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/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/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 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. CONTINUED AB 1208 Page 4 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, F. Patients and families or representatives participate CONTINUED AB 1208 Page 5 in quality improvement activities at the practice level. G. Patients in a PCMH are provided with enhanced access to health care. 12.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. Applying to the LIHP, 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. Background ACA . 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) CONTINUED AB 1208 Page 6 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. 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. Prior Legislation AB 2266 (Mitchell of 2012) would have required the Department of Health Care Services (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 Governor Brown. In his veto message, Governor Brown stated that he commended the author for trying to improve the delivery of health care by encouraging the greater use of "PCMH," 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 CONTINUED AB 1208 Page 7 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 7/2/13) California Academy of Family Physicians (co-source) California Academy of Physician Assistants (co-source) California Medical Association (co-source) 100% Campaign Alzheimer's Association American Osteopathic Association California Association of Physician Groups California Black Health Network 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 OPPOSITION : (Verified 7/2/13) CONTINUED AB 1208 Page 8 California Right to Life Committee, Inc. ARGUMENTS IN 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. 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 ensure that all of a patient's care needs are effectively addressed and coordinated. 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. ARGUMENTS IN 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 CONTINUED AB 1208 Page 9 the individual. ASSEMBLY FLOOR : 62-12, 5/13/13 AYES: Achadjian, Alejo, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Hall, Roger Hernández, Jones-Sawyer, Levine, Linder, Maienschein, Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Torres, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NOES: Donnelly, Beth Gaines, Grove, Hagman, Harkey, Jones, Logue, Mansoor, Melendez, Morrell, Wagner, Waldron NO VOTE RECORDED: Allen, Ammiano, Holden, Lowenthal, Patterson, Vacancy JL:d 7/2/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED