BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 249
          Author:   Leno (D)
          Amended:  4/16/13
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  9-0, 4/24/13
          AYES:  Hernandez, Anderson, Beall, De León, DeSaulnier, Monning,  
            Nielsen, Pavley, Wolk

           SENATE JUDICIARY COMMITTEE  :  7-0, 4/30/13
          AYES:  Evans, Walters, Anderson, Corbett, Jackson, Leno, Monning

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/13
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    Public health:  health records:  confidentiality

           SOURCE  :     AIDS Project Los Angeles
                      Conference of California Bar Associations
                      L.A. Gay & Lesbian Center
                      San Francisco AIDS Foundation
                      Transgender Law Center


           DIGEST  :    This bill permits the Department of Public Health  
          (DPH) to share health records involving the diagnosis, care, and  
          treatment of a beneficiary enrolled in the federal Ryan White  
          Comprehensive AIDS Resources Emergency Act (Ryan White CARE Act)  
          funded programs that may be eligible for services under the  
          Affordable Care Act (ACA), with "qualified entities," as  
          defined.  Permits qualified entities to share health records  
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          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 California Health Benefits Exchange (Covered  
          California); and makes other technical changes to existing law  
          governing the sharing of information related to HIV positive  
          individuals.

           ANALYSIS :    

          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  
             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/her guardian or  

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             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/her HIV care, for the purpose of proactively  
                offering and coordinating care and treatment services to  
                him/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/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 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.

          9. Establishes the Covered California to facilitate the purchase  
             of qualified health plans by qualified individuals and small  
             employers by January 1, 2014.

          This bill:

          1. Permits DPH to share health records involving the diagnosis,  

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             care, and treatment of a beneficiary enrolled in federal Ryan  
             White CARE Act-funded programs that 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 purpose 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/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  
                provider of health care. 

             B.     "Qualified entity" means DHCS, Covered California,  
                Medi-Cal managed care plans, Bridge Program plans,  

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                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/her  
             HIV care for the purpose of proactively offering and  
             coordinating care and treatment services to him/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.

           Background
           
          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 CARE Act, 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."

          The Ryan White CARE 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 CARE Act includes a number of programs to meet  
          the needs of different communities and populations affected by  

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          HIV/AIDS.

          In California, DPH/OA administers Ryan White CARE 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  
          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 CARE Act Part B funds.  

           Prior legislation
           
          AB 714 (Atkins, 2011-12) 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee:


             Likely administrative costs in the hundreds of thousands to  
             develop agreements with other state agencies and health plans  
             by DPH (special fund).


             Unknown potential information technology costs by DPH  
             (federal funds).  DPH indicates that it may need to make  
             changes to its information technology systems to share  
             information with other entities.  At this time, DPH 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). 

             Unknown potential savings to programs administered by DPH  

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             because this bill helps ensure that other sources of health  
             care coverage pay for services (federal funds).

           SUPPORT  :   (Verified  5/23/13)

          AIDS Project Los Angeles (co-source)
          Conference of California Bar Associations (co-source)
          L.A. Gay & Lesbian Center (co-source)
          San Francisco AIDS Foundation (co-source)
          Transgender Law Center (co-source)
          AIDS Legal Referral Panel
          California Communities United Institute
          California Primary Care Foundation
          Community Clinic Association of Los Angeles County
          Disability Rights California
          National Association of Social Workers, California Chapter
          Project Inform


           ARGUMENTS IN 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 the Ryan  
          White 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 the Ryan White 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 for determining HIV status was a blood  
          test, and that this bill extends the protections that now apply  
          to blood tests to all types of HIV tests, including those which  
          may be developed in the future.


          JL:d  5/23/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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