BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1812| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 1812 Author: Pan (D) Amended: 6/17/14 in Senate Vote: 21 SENATE HEALTH COMMITTEE : 9-0, 6/11/14 AYES: Hernandez, Morrell, Beall, De León, DeSaulnier, Evans, Monning, Nielsen, Wolk SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 75-0, 4/24/14 (Consent) - See last page for vote SUBJECT : Health facilities: information: disclosure SOURCE : Author DIGEST : This bill expands the list of entities to which the Office of Statewide Health Planning and Development (OSHPD) is required to disclose information it collects to include any subsidiary of the United States Department of Health and Human Services, for the purposes of conducting a statutorily authorized activity. ANALYSIS : Existing law: 1. Establishes the OSHPD, and designates OSHPD as the single CONTINUED AB 1812 Page 2 state agency to collect specified health facility or clinic data for use by all state agencies. 2. Requires hospitals to make and file with OSHPD certain specified reports, including a Hospital Discharge Abstract Data Record, an Emergency Care Data Record, and an Ambulatory Surgery Data Record, which are required to include specified data elements for each admission or patient encounter, including information on age, sex, ethnicity, ZIP code, diagnoses and disposition of the patient. 3. Requires OSHPD to compile and publish summaries of individual facility and aggregate data that do not contain patient-specific information for the purposes of public disclosure. 4. Requires OSHPD to disclose patient-level data collected pursuant to 2) above to any California hospital and any local health department or local health officer, and to the National Center for Health Statistics or any other unit of the Centers for Disease Control and Prevention (CDC), or the Agency for Healthcare Research and Quality of the United States Department of Health and Human Services, for the purposes of conducting a statutorily authorized activity. 5. Establishes, under federal law, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), which among various provisions, mandates industry-wide standards for health care information on electronic billing and other processes; and, requires the protection and confidential handling of protected health information. This bill expands the list of entities to which OSHPD is required to disclose information it collects through its Hospital Discharge Abstract Data Record, Emergency Care Data Record, and Ambulatory Surgery Data Record, to include any subsidiary of the United States Department of Health and Human Services, including the Centers for Medicare and Medicaid Services, the Health Resources and Services Administration, the Indian Health Service, the Tribal Epidemiology Centers, the National Institutes of Health, or the National Cancer Institute, as well as the Veterans Health Care Administration within the United States Department of Veterans Affairs, for the purposes of conducting a statutorily authorized activity. CONTINUED AB 1812 Page 3 Background HIPAA . HIPAA became law in 1996 and was intended to expand health coverage by improving the portability and continuity of health insurance coverage in both group and individual markets. It is also designed to combat waste in health service delivery, and simplify the administration of health insurance. Public agencies are not exempt from HIPAA rules if they meet the HIPAA criteria as covered entities, with limited exemptions. HIPAA includes a Privacy Rule which provides federal protections for individually identifiable health information held by covered entities (health care providers and others) and their business associates and gives patients an array of rights with respect to that information. Under the HIPAA Privacy Rule, health information that does not identify an individual, and there is no reasonable basis to believe that the information can be used to identify an individual, is not individually identifiable health information. In order to ensure that health information is not individually identifiable, certain actions must be taken, including removing information about age and geographic location, including zip code. However, the HIPAA Privacy Rule does permit covered entities to use or disclose a "limited data set," which permits additional information such as age and geographic location to be included, if the covered entity enters into a data use agreement with the limited data set recipient. The provisions of law that this bill is amending require "all disclosures to be consistent with the standards and limitations applicable to the disclosure of limited data sets" as provided in the HIPAA Privacy Rule. Comments According to the author's office, OSHPD hospital inpatient, outpatient, and emergency department patient-level data is a primary source of information on population health, utilization of healthcare services, and disease surveillance. Authorizing OSHPD to release confidential hospital patient-level data to the additional federal entities will allow them to better assess population health needs in allocating federal funds, publicly reporting geographic, demographic, or other variations in healthcare and in developing interventions to improve population heath. This bill authorizes OSHPD to release confidential CONTINUED AB 1812 Page 4 hospital patient-level data to the specified federal entities only under specific data use agreements that are used under current state law for release of confidential data to University of California and other non-profit educational institutions, California local public health officers and two federal agencies - the Agency for Healthcare Research and Quality (AHRQ), and the CDC. Under existing law, with the exception of the AHRQ and CDC, other federal agencies cannot access this data directly from OSHPD. Prior legislation AB 2876 (Frommer, Chapter 434, Statutes of 2004) requires OSHPD, upon request, to disclose patient encounter and discharge data to hospitals and local health departments or local health officers, and to any unit of the CDC or AHRQ of the United States Department of Health and Human Services for the purposes of conducting a statutorily authorized activity. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No ASSEMBLY FLOOR : 75-0, 4/24/14 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Grove, Hagman, Hall, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Gray, Harkey, Mansoor, Nazarian, Vacancy JL:d:n 6/25/14 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED AB 1812 Page 5 CONTINUED