BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 1474
Author: Assembly Budget Committee
Amended: 6/15/14 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 11-4, 6/15/14
AYES: Leno, Beall, Block, Corbett, Hancock, Jackson, Liu,
Mitchell, Monning, Roth, Torres
NOES: Nielsen, Berryhill, Morrell, Wyland
NO VOTE RECORDED: Anderson
ASSEMBLY FLOOR : Not relevant
SUBJECT : Budget Act of 2014: Health
SOURCE : Author
DIGEST : This is the Omnibus Health Trailer Bill for the
2014-15 Budget Act. It contains necessary changes related to
the Budget Act of 2014-15.
ANALYSIS : This bill makes the following statutory changes to
implement the 2014-15 Budget:
1. Medi-Cal: Applied Behavioral Analysis (ABA). This bill
requires ABA, or behavioral health treatment, to be a covered
Medi-Cal service for individuals under age 21 to the extent
required by the federal government. This bill requires the
Department of Health Care Services (DHCS) to implement this
new benefit only after consultation with stakeholders.
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2. Medi-Cal: Supplemental Managed Care Organization (MCO) Drug
Rebates for Specialty Drugs. This bill allows for MCO
supplemental rebates for specialty drugs, such as Hepatitis C
drugs like Sovaldi. This rebate collection occurs when (1)
DHCS reimburses health plans through a separate capitated
payment or other supplemental payment ("kick-payment") for
the specialty drug and (2) health plans follow the clinical
guidelines (coverage policies) for this drug. It is
estimated that this change would result in $6 million General
Fund savings in 2014-15, $20 million General Fund savings in
2015-16, and $31 million General Fund savings annually
thereafter.
3. Medi-Cal: Pediatric Vision Projects. This bill implements
a pilot program in Los Angeles County no sooner than January
1, 2015, and concluding December 31, 2017, to expand
pediatric vision examinations and services through the use of
mobile vision providers.
4. Medi-Cal: Program of All-Inclusive Care for Elderly (PACE) .
This bill requires that PACE capitation rates be no less than
95% of the fee-for-service equivalent cost (current law is
90%). It is estimated that this change would result in $1.8
million General Fund costs in 2014-15, and $7.3 million
General Fund costs annually, thereafter.
5. Medi-Cal: Rates and Access. This bill expresses the
Legislature's intent that DHCS continue to monitor access to
and utilization of Medi-Cal services and to use this
information to evaluate the current reimbursement levels and
make targeted changes to those reimbursement levels as it
finds appropriate.
6. Robert F. Kennedy Health Plan. This bill provides $3.2
million in one-time funds from the Major Risk Medical
Insurance to DHCS to be allocated to the Robert F. Kennedy
Health Plan for purposes of purchasing stop loss insurance.
7. Electronic Health Records - State Match. This bill provides
$3.75 million in one-time funds from the Major Risk Medical
Insurance to DHCS to be used as the state match to draw down
$37.5 million in federal funds to support the meaningful use
of electronic health records in the state.
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8. HIV Demonstration Projects. This bill establishes public
health demonstration projects for innovative, evidence-based
approaches to provide outreach, HIV and Hepatitis C
screenings, and linkages to, and retention in, quality health
care for underserved individuals with high-risk for HIV
infection.
9. Song-Brown Program - New Residency Slots. This bill
specifies criteria for funds appropriated in the budget act
for Song-Brown grants to primary care residency training
programs. This bill specifies that priority shall be given to
support new primary care physician slots and shall be given
to physicians who have graduated from a California-based
medical school.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Budget and Fiscal Review Committee, the
funding related to the changes in this bill is contained in the
2014-15 Budget. This bill reappropriates Department of
Developmental Services' funds.
JL:nl 6/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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