BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 249 AUTHOR: Leno AMENDED: April 16, 2013 HEARING DATE: April 24, 2013 CONSULTANT: Moreno SUBJECT : Public Health: Health Records: Confidentiality. SUMMARY : Permits the Department of Public Health (DPH) to share health records involving the diagnosis, care, and treatment of a beneficiary enrolled in federal Ryan White Act-funded programs who may be eligible for services under the Affordable Care Act (ACA), with "qualified entities," as defined. Permits qualified entities to share health records relating to persons diagnosed with HIV/AIDS with DPH for the purpose of enrollment without disruption in Medi-Cal, the bridge programs, Medicaid expansion programs, and any insurance plan certified by Covered California. Makes other technical changes to existing law governing the sharing of information related to HIV positive individuals. Existing law: 1.Requires DPH to administer a program to provide information, establish testing sites, and award contracts for AIDS early intervention projects for the provision of appropriate medical treatment to prevent or delay the progression of disease that results from HIV infection, to coordinate related services, and to provide information and education to prevent the spread of the infection to others. 2.Establishes, under the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), requirements relating to the provision of health insurance, and the protection of privacy of individually identifiable health information. 3.Prohibits, under the state Confidentiality of Medical Information Act, providers of health care, health care service plans, or contractors, as defined, from sharing medical information without the patient's written authorization, subject to certain exceptions, including disclosure to a probate court investigator, as specified. 4.Requires health care providers and laboratories to report Continued--- SB 249| Page 2 cases of HIV infection to the local health officer (LHO) using patient names, as specified. Requires LHOs to report unduplicated HIV cases by name to DPH. 5.Requires health records relating to HIV or AIDS containing personally identifying information, that were developed or acquired by state or local public health agencies or an agent of such an agency, to be confidential and not be disclosed, except as provided by law for public health purposes or in accordance with a written authorization by the person who is the subject of the record or by his or her guardian or conservator. 6.Permits disclosures for the purpose of facilitating appropriate HIV/AIDS medical care and treatment, including: a. The state public health agency HIV surveillance staff, AIDS Drug Assistance Program (ADAP) staff, and care services staff may further disclose the information to local public health agency staff, who may further disclose the information to the HIV-positive person who is the subject of the record, or the health care provider who provides his or her HIV care, for the purpose of proactively offering and coordinating care and treatment services to him or her. b. ADAP staff and DPH care services staff may further disclose the information directly to the HIV-positive person who is the subject of the record or the health care provider who provides his or her HIV care, for the purpose of proactively offering and coordinating care and treatment services to him or her. 7.Prohibits the use of public health records related to persons with HIV/AIDS to determine the insurability of any person. Prohibits the use of the results of an HIV test for determination of insurability, except for life and disability insurance under certain conditions. 8.Establishes the federal ACA, which imposes various requirements, some of which take effect on January 1, 2014, on states, carriers, employers, and individuals regarding health care coverage. Requires every individual to be covered under minimum essential coverage, as specified, and requires every health insurance issuer offering coverage in the individual or small group markets to ensure coverage includes specified essential health benefits. SB 249| Page 3 9.Establishes the California Health Benefits Exchange (called Covered California) to facilitate the purchase of qualified health plans through Covered California by qualified individuals and qualified small employers by January 1, 2014. This bill: 1.Permits DPH to share health records involving the diagnosis, care, and treatment of a beneficiary enrolled in federal Ryan White Act-funded programs who may be eligible for services under the ACA, with "qualified entities," as defined. Permits qualified entities to share health records relating to persons diagnosed with HIV/AIDS with DPH for the purpose of enrollment without disruption in Medi-Cal, the bridge programs, Medicaid expansion programs, and any insurance plan certified by Covered California. 2.Requires this information to be limited to only that necessary for the purposes of this bill and prohibits it from being further disclosed by a qualified entity, except to: a. The person who is the subject of the record or to his or her guardian or conservator; b. The health care provider for the person with HIV/AIDS to whom the information pertains; or, c. The DPH Office of AIDS (DPH/OA). 3.Prohibits information shared pursuant to this bill from being disclosed, discoverable, or compelled to be produced in any civil, criminal, administrative, or other proceeding. 4.Requires all employees and contractors of a qualified entity who have legal access to confidential HIV-related medical records to be required to sign confidentiality agreements pursuant to existing law related to the protection of confidentiality for HIV positive individuals. 5.Requires this bill to be implemented only to the extent permitted by federal law. 6.Defines a number of terms, including: a. "Contractor" means any person or entity that is a medical group, independent practice association, pharmaceutical benefits manager, or a medical service organization and is not a health care service plan or SB 249| Page 4 provider of health care. b. "Qualified entity" means DHCS, Covered California, Medi-Cal managed care plans, Bridge Program plans, health plans offered through the Covered California, and DMHC. 7.Adds to the disclosures permitted under existing law for the purpose of facilitating appropriate HIV/AIDS medical care and treatment that the LHO may disclose acquired or developed information to the HIV-positive person who is the subject of the record or the health care provider who provides his or her HIV care for the purpose of proactively offering and coordinating care and treatment services to him or her. 8.Requires, upon request by DPH, laboratories to report cases of HIV infection by name directly to DPH, as specified, in addition to reports to the LHO. 9.Updates existing law that protects the confidentiality of HIV test results to refer to an "HIV test" rather than a "blood test" and makes other technical, clarifying changes. FISCAL EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : 1.Author's statement. The prohibition on disclosure of HIV information has become not only somewhat redundant because of laws that protect the confidentiality of all medical information (such as HIPAA), but is also an impediment to individuals enrolled in federal Ryan White Act-funded services. As a result of federal and state health care reform, those individuals must transition to new health coverage systems. Current restrictions on the sharing of HIV information cause serious problems for both patients trying to access health care, and providers who are trying to coordinate care. At the same time, current HIV confidentiality law is inadequate because it does not protect the confidentiality of all types of HIV tests that are now available. SB 249 addresses these problems by amending HIV confidentiality laws to do the following: a) allow the sharing of HIV information for a limited purpose - coordination of care during the transition to a new health care option, such as a health plan available from Covered California, or through Medi-Cal; and b) extend the protections that now apply to only HIV blood tests to all types of HIV tests. SB 249| Page 5 2.KFF Report. According to a September 2012 Kaiser Family Foundation report about expanded coverage for people with HIV/AIDS, under the ACA there are multiple public and private sources of insurance coverage and care for people with HIV in the United States. Medicaid (Medi-Cal in California), the nation's principal safety-net health insurance program for low-income Americans, is estimated to cover the largest share of people with HIV. Fewer are covered by Medicare (the federal health insurance program for people age 65 and older and adults with permanent disabilities), or have private insurance. A significant share is uninsured, relying primarily on the Ryan White program, the nation's single largest federal grant program designed specifically for people with HIV who are uninsured or underinsured, and operating as the "payer of last resort." Eligibility for these different coverage sources depends on a number of factors, including state of residence, income, employment, health status, age, and citizenship. As a result, the current system of coverage for people with HIV is a complex patchwork that leaves some outside the system and presents others with barriers to needed access. The ACA will expand coverage, and therefore access to care, for millions of people, including people with HIV. The report states that access to care, particularly antiretroviral treatment (ART), is not only critical for the health of people with HIV, it also carries important public health benefits with recent research demonstrating that ART significantly reduces the risk of HIV transmission from an HIV positive to negative individual. 3.The ACA. On March 23, 2010, President Obama signed the ACA (Public Law 111-148), as amended by the Health Care and Education Reconciliation Act of 2010 (Public Law 111-152). Among other provisions, the ACA includes a number of private health insurance market reforms that will benefit those with HIV/AIDS, including: a. Guaranteed issue of coverage, which prevents insurers from denying coverage to individuals based on pre-existing conditions; b. Fair health insurance premiums, which prohibits discriminatory premium rates by preventing insurers from charging more for individuals based on pre-existing conditions; SB 249| Page 6 c. Prohibition of pre-existing condition exclusions or other discrimination based on health status; d. Prohibitions against imposing annual dollar limits on essential health benefits; e. Dependent coverage extension. (up to age 26); and, f. Coverage of specified preventive health services without cost-sharing. The ACA also establishes a new Medicaid eligibility category for low-income adults between 19 and 64 years of age with income at or below 133 percent of the Federal Poverty Level (FPL). If a state expands its Medicaid program, low-income people living with HIV who meet the new eligibility criteria will no longer have to wait for an AIDS diagnosis to qualify for Medicaid. In states that implement this Medicaid expansion, which the Legislature is currently contemplating, eligibility will be determined using Modified Adjusted Gross Income-based methods. If necessary for establishing income eligibility, an income disregard equal to 5 percentage points of the FPL will be applied. Under the law, the "newly eligible" individuals will be enrolled into a Medicaid Alternative Benefit Plan, which must include coverage of the ten statutory essential health benefit categories and comply with state and federal regulations. 4.Ryan White Act. The Ryan White Act funds health care and support services for people who have HIV/AIDS and who have no health insurance or are underinsured. According to a 2009 Office of Inspector General report to California, it is the largest source of federal funding specifically for people with HIV/AIDS, and provides assistance to more than 500,000 individuals each year. The Ryan White Act includes a number of programs to meet the needs of different communities and populations affected by HIV/AIDS. In California, DPH/OA administers Ryan White Act Part B program funds given to states and territories for HIV care, treatment and adherence support services. According to DPH, under that program, approximately 30,000 HIV Care Program/Minority AIDS Initiative; 40,500 AIDS Drug Assistance SB 249| Page 7 Program; and 900 Health Insurance Premium Payment Program/Pre-Existing Condition Insurance Plan clients were served in fiscal year 2011-12. In 2012, DPH/OA received over $163.4 million Ryan White Act Part B funds. 5.Related legislation. SB 28 (Hernandez) requires the Managed Risk Medical Insurance Board (MRMIB) to provide Covered California with the name, contact information and spoken language of Major Risk Medical Insurance Program and Pre-Existing Condition Insurance Program subscribers and applicants in order to assist Covered California in conducting outreach. Requires the Covered California to use the information from MRMIB to provide a notice to these individuals informing them of their potential eligibility for coverage through Covered California or Medi-Cal. Requires DHCS to designate Covered California and county human services department as qualified entities for determining eligibility for accelerated enrollment under Medi-Cal for children. SB 28 is set to be heard in the Senate Health Committee on April 24, 2013. 6.Prior legislation. AB 714 (Atkins) of the 2011-12 session would have required notices of health care eligibility be sent to individuals who are enrolled in, or who cease to be enrolled in, publicly-funded state health care programs. AB 714 was held on the Senate Appropriations Committee suspense file. 7.Double referral. This bill is double referred. Should it pass out of this committee, it will be referred to the Senate Judiciary Committee. 8.Support. The Conference of California Bar Associations, AIDS Legal Referral Panel and the L.A. Gay & Lesbian Center write that the prohibition on any sharing of HIV information, except in extremely limited circumstances is not only duplicative of the protections provided under other law, but it is also an impediment to individuals enrolled in CARE-Act - funded services, who must transition to new health coverage systems under recent changes to the health care laws. The California Primary Care Association states that existing law impedes CARE-Act patients' access to care and providers' efforts to coordinate care. The Community Clinic Association of Los Angeles County writes that HIV confidentiality law is inadequate as it was drafted at a time when the only method SB 249| Page 8 for determining HIV status was a blood test, and that this bill would extend the protections that now apply to blood tests to all types of HIV tests, including those which may be developed in the future. SUPPORT AND OPPOSITION : Support: Conference of California Bar Associations (sponsor) S.F. AIDS Foundation (sponsor) AIDS Legal Referral Panel AIDS Project Los Angeles California Communities United Institute California Primary Care Association Community Clinic Association of Los Angeles County L.A. Gay & Lesbian Center National Association of Social Workers, California Chapter Transgender Law Center Oppose: None received -- END --