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  
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            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.





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          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  




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               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. 
            




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          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;




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             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  




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            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  




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            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




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