BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 249 (Leno) - Public Health: health records: confidentiality.
          
          Amended: April 16, 2013         Policy Vote: Health 9-0, Judic.  
          7-0
          Urgency: No                     Mandate: No
          Hearing Date: May 13, 2013      Consultant: Brendan McCarthy
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 249 would permit the Department of Public  
          Health to share records with specified entities relating to the  
          diagnosis or care of beneficiaries enrolled in health care  
          programs for HIV positive individuals. The bill also makes other  
          changes to statute relating to the sharing of information  
          related to HIV positive individuals.

          Fiscal Impact: 
              Likely administrative costs in the hundreds of thousands to  
              develop agreements with other state agencies and health  
              plans by the Department of Public Health (federal funds).

              Unknown potential information technology costs by the  
              Department of Public Health (federal funds). The Department  
              indicates that it may need to make changes to its  
              information technology systems to share information with  
              other entities. At this time, the Department does not know  
              whether such changes are necessary or what they would cost.

              Potential increase in Medi-Cal costs in the low millions  
              (federal funds). See below.

              Unknown potential savings to programs administered by the  
              Department of Public Health because the bill would help  
              ensure that other sources of health care coverage pay for  
              services (federal funds). See below.

          Background: Under current law, the Department of Public Health  
          manages several federally-funded programs to provide limited  
          health care coverage to individuals who are HIV positive and do  
          not have other health care coverage or need additional services  
          not covered by their current insurance (referred to as Ryan  








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          White-funded programs). About 75,000 individuals receive  
          services from these programs.

          Current law places certain restrictions on the disclosure or use  
          of information relating to a person's HIV status.

          Current law also requires health care providers and laboratories  
          to report HIV cases to local health officers, who are required  
          to report that information to the Department of Public Health.

          The federal Affordable Care Act allows states to expand Medicaid  
          (Medi-Cal in California) eligibility to persons under 65 years  
          of age, who are not pregnant, not entitled to Medicare Part A or  
          enrolled in Medicare Part B, and whose income does not exceed  
          133 percent of the federal poverty level (effectively 138  
          percent of the federal poverty level as calculated under the  
          Affordable Care Act). 

          The Affordable Care Act provides a significantly enhanced  
          federal match for the Medicaid expansion. Under the law, the  
          federal government will pay for 100 percent of the cost of the  
          Medicaid expansion in 2013-14 declining to a 90 percent federal  
          match in the 2020 federal fiscal year and thereafter.

          Proposed Law: SB 249 would permit the Department of Public  
          Health to share records relating to the diagnosis or care of  
          beneficiaries enrolled in health care programs for HIV positive  
          individuals with the Department of Health Care Services, the  
          California Health Benefit Exchange, Medi-Cal managed care plans,  
          health plans offering coverage through the Exchange, and the  
          Department of Managed Health Care.

          The bill authorizes laboratories to report cases of HIV  
          infection to the Department of Public Health, upon request. The  
          bill also makes other technical changes to statutes relating to  
          the sharing of information related to HIV positive individuals.

          Related Legislation: 
              SB 28 (Hernandez) would require notification of subscribers  
              of two state-run health plans about coverage options that  
              will be available through the state's Health Benefit  
              Exchange. That bill is on the Senate Floor.

              SB 800 (Lara) would require the Department of Health Care  








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              Services to provide contact information to the California  
              Health Benefit Exchange for parents and caretakers of  
              children enrolled in the Healthy Families Program. That bill  
              will be heard in this committee.

          Staff Comments: The intention of the bill is to assist with the  
          transition of individuals with HIV from existing programs to  
          subsidized coverage through the Exchange or to an expanded  
          Medi-Cal.

          Under current law, individuals up to 400% of the federal poverty  
          level will be eligible for subsidized coverage through the  
          Exchange. In addition, the state is considering expanding the  
          eligibility for Medi-Cal to 138% of the federal poverty level.  
          Should the state decide to expand Medi-Cal eligibility, a  
          significant number of the participants in Ryan White-funded  
          programs may qualify for Medi-Cal.

          To the extent that this bill results in those individuals  
          learning of their eligibility for expanded Medi-Cal, enrollment  
          could increase, increasing costs. However, given that  
          participants in these programs are currently receiving care for  
          a serious condition, it is likely that most program participants  
          are aware of new options for coverage that will be available  
          after January 1, 2014. Thus, this bill is not likely to  
          significantly increase enrollment in Medi-Cal, should the state  
          decide to expand the program. To the extent that enrollment does  
          increase, those costs would be borne entirely by the federal  
          government, since the Medi-Cal expansion will be funded entirely  
          with federal funds initially.

          The Ryan White-funded programs that would be impacted by this  
          bill generally require any other form of health care coverage to  
          pay for services before the program will provide payment (i.e.  
          these programs are payers of last resort). After January 1,  
          2014, it is anticipated that many enrollees in these programs  
          will be able to access health care coverage through Medi-Cal or  
          the Exchange. In those cases, the Ryan White-funded programs  
          would only be required to pay for services or costs not borne by  
          those other programs. By allowing the Department to share  
          information with the Exchange and other entities, this bill will  
          increase the likelihood that costs are appropriately paid by  
          other programs before Ryan White-funded program funds are used.









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