BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1592
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1592 (Beth Gaines)
          As Amended August 19, 2014
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |79-0 |(May 29, 2014)  |SENATE: |35-0 |(August 25,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    HEALTH  

           SUMMARY  :  Requires the Department of Public Health (DPH) to  
          complete and submit to the Legislature a Diabetes Burden Report  
          by December 31, 2015, which includes, among other things,  
          actionable items for consideration by the Legislature that will  
          aid in attaining the goals set forth by DPH in the California  
          Wellness Plan for 2014 (Plan).  Requires DPH to include in the  
          report guidelines that will reduce the fiscal burden of diabetes  
          to the state.

           The Senate amendments  revised the information required to be  
          included in the report and added the requirement for guidelines  
          to reduce the fiscal burden of diabetes to the state.

           EXISTING LAW  :  Establishes DPH to protect and improve the health  
          of communities through education, promotion of healthy  
          lifestyles, and research for disease and injury prevention.

           AS PASSED BY THE ASSEMBLY  , this bill required DPH, as part of  
          the California Diabetes Program (CDP), to submit a report to the  
          Legislature by December 31, 2015, which includes information on  
          the fiscal impact of diabetes to the Medi-Cal program, among  
          other things, as well as provide proposals to reduce the impact  
          of diabetes and its complications.   

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, one-time costs of about $300,000 for contract staff  
          to analyze data, develop recommendations, and prepare the report  
          as well as staff support from DPH (General Fund). 

           COMMENTS  :  According to the author, the State of California has  
          no plan in place to mitigate the escalating fiscal impact of  
          diabetes, and while there has been extensive legislation enacted  
          to promote awareness and cost saving measures for conditions  








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          such as cardiovascular disease and tobacco addiction, current  
          law is woefully inadequate in regard to diabetes.  The author  
          states that diabetes has reached epidemic levels in California,  
          and as of 2012, about one in seven adult Californians have  
          diabetes and many more will be diagnosed in the near future.   
          Finally, the author states that this bill would require the CDP  
          to create and submit to the state a diabetes action plan, which  
          will provide policy guidance addressing the escalating fiscal  
          impact of diabetes treatment and care.

          Diabetes is a chronic medical condition marked by high levels of  
          blood glucose (a form of sugar) resulting from defects in  
          insulin production, insulin action, or both.  Type 1 diabetes,  
          previously known as juvenile diabetes, is an autoimmune disease  
          in which the body does not produce the hormone insulin.  There  
          is no known way to prevent type 1 diabetes.  Type 2 diabetes  
          (previously called non-insulin-dependent diabetes or adult-onset  
          diabetes) in adults, accounts for about 90% to 95% of all  
          diagnosed cases of diabetes.  It usually begins as insulin  
          resistance, a disorder in which the cells do not use insulin  
          properly.  As the need for insulin rises, the pancreas gradually  
          loses its ability to produce it.  Gestational diabetes occurs in  
          pregnant women who have never had diabetes before but have  
          higher than normal blood glucose levels during pregnancy.   
          Immediately after pregnancy, 5% to 10% of women with gestational  
          diabetes are found to have diabetes, usually Type 2 diabetes.   
          Women who have had gestational diabetes have a 35% to 60% chance  
          of developing diabetes in the next 10 to 20 years.  Prediabetes  
          is a condition in which individuals have blood glucose levels  
          higher than normal but not high enough to be classified as  
          diabetes.  People with prediabetes have an increased risk of  
          developing Type 2 diabetes, heart disease, and stroke.  Without  
          intervention, about one out of four people with prediabetes will  
          develop diabetes within three to five years.  Ethnic minorities  
          and those who are poor or disadvantaged have especially high  
          rates of diabetes.  

          According to the CDP, diabetes costs in California exceed $24  
          billion each year.  Total health care and related costs for the  
          treatment of diabetes in California are about $24.5 billion.   
          Direct medical costs (e.g., hospitalizations, medical care,  
          treatment, supplies) account for about $18.7 billion, the other  
          $5.8 billion include indirect costs such as disability payments,  
          time lost from work, and premature death.  The average annual  
          treatment cost per case for diagnosed diabetes in the United  








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          States (U.S.) was nearly $10,000 in 2007.  California has an  
          estimated 3.9 million adults with diabetes (2010), and the  
          numbers are rising rapidly.  

          This year DPH published the Plan, the result of a statewide  
          process led by DPH to develop a roadmap with partners and create  
          communities in which people can be healthy through improving the  
          quality of clinical and community care, increasing access to  
          usable health information, assuring continued public health  
          capacity to achieve health equity, and empowering communities to  
          create healthier environments.  The Plan contains short,  
          intermediate, and long-term objectives with measurable effects  
          on a variety of chronic diseases, including diabetes.  DPH's  
          chronic disease programs plan to collaborate with local and  
          state partners, including the Office of Health Equity, engaged  
          in diabetes prevention to implement the objectives.  DPH intends  
          to monitor the progress of the Plan objectives and publish  
          regular reports on outcomes.

          DPH is currently working on a Diabetes Burden Report with an  
          anticipated completion of December 31, 2014.  The report will  
          include information on the prevalence of diabetes in California  
          compared to the rest of the U.S., risk factors for developing  
          diabetes and diabetes complications, as well as the prevalence  
          of obesity, inactivity, and cardiovascular disease risk factors  
          (smoking, hypertension, hypercholesterolemia) among diabetics as  
          compared to non-diabetics in California.  The report will  
          address the prevalence of pre-diabetes, complications of  
          diabetes, and diabetes mortality in California compared to the  
          rest of the nation.  The report will also outline DPH programs  
          and activities that address the burden of diabetes in  
          California.


           Analysis Prepared by  :    Lara Flynn / HEALTH / (916) 319-2097 


          FN: 0004840