BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 383


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          383 (Gipson) - As Amended April 30, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires a primary care clinic (PCC) to offer  
          specified patients receiving services a hepatitis C virus (HCV)  
          screening or diagnostic test.









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          FISCAL EFFECT:


          Based on conservative assumptions that this bill results in  
          identification of 30,000 individuals affected by HCV in the  
          first year:


          1)Indirect cost pressure of $4.5 million (GF/federal) to  
            Medi-Cal associated with increased testing in PCC clinics.  
            Because clinics are reimbursed on a per-visit basis and the  
            HCV test would likely be offered in combination with other  
            services, testing cost would not be separately reimbursed.  


          2)For individuals who are diagnosed, counseling and follow-up  
            care would result in increased visits costing Medi-Cal $1-2  
            million (GF/federal), depending on intensity of such care. 


          3)Cost pressure to Medi-Cal for increased drug treatment of HCV  
            of $340 million (GF/federal), based on 38% of identified cases  
            being among Medi-Cal eligible patients, and 75% of patients  
            being linked to treatment at a one-time treatment cost of  
            $40,000.   


          These estimates are based on general public health surveillance  
          data and data on clinic encounters reported by the Office of  
          Statewide Health Planning and Development and is subject to  
          significant uncertainty. Similar costs would be incurred in  
          future years, although would taper off year by year as more  
          people infected with HCV would be identified.  Although HCV is  
          the most common bloodborne pathogen among Americans, the  
          infection is not rapidly spreading and thus widespread one-time  
          testing would likely yield fewer and fewer positive results in  
          each subsequent year.       









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          COMMENTS:


          1)Purpose. According to the author, between 2.7 million and 3.9  
            million U.S. residents are infected with HCV and 500,000  
            Californians are living with the virus.  Nevertheless, there  
            is a significant lack of awareness of HCV, the threat that it  
            poses to the public health, and current opportunities to  
            control it.   The author states this bill seeks to ensure that  
            primary care clinics are proactive in testing high risk and  
            baby boomer patients for HCV to increase community awareness.



          2)Hepatitis C.  Hepatitis is a virus, or infection, that causes  
            liver disease and inflammation of the liver.  Acute hepatitis  
            C is a short-term infection with the hepatitis C virus.  
            Symptoms can last up to six months.  In about 15% of cases,  
            the body is able to fight off the infection and get rid of the  
            virus.  Chronic hepatitis C is a long-lasting infection.   
            Chronic hepatitis C occurs when the body can't get rid of the  
            hepatitis C virus.  People can become infected through sharing  
            needles, needle-stick injuries in health care settings, or  
            being born to a mother who has HCV.  Receipt of donated blood  
            and organs was once a common means of transmission as well,  
            but modern screening has virtually eliminated this. According  
            to the CDC, millions of Americans have HCV, but most don't  
            know it, because people often have no symptoms and can live  
            with an infection for decades without feeling sick.  HCV is a  
            leading cause of liver cancer and the leading cause of liver  
            transplants.  
          
          3)Who is screened? This bill requires screening tests consistent  
            with the United States Preventive Services Task Force (USPSTF)  
            recommendations for screening and any federal Centers for  
            Disease Control and Prevention (CDC)  algorithms.  The USPSTF  
            and CDC recommend screening for HCV in persons at high risk  
            for infection and 1-time screening for adults born between  








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            1945 and 1965, who account for 75% of individuals infected  
            with HCV.





          4)Treatment. Treatment for Hepatitis C has evolved rapidly in  
            recent years.  According to the Centers for Disease Control  
            and Prevention, prior to 2013, medication was given for 24-48  
            weeks and cured 50%-80% of patients, sometimes with  
            significant side effects.   In late 2013, the federal Food and  
            Drug Administration approved two new antiviral drugs,  
            Sofosbuvir (Sovaldi) and Simeprevir (Olysio) to treat chronic  
            HCV infection.  Clinical trials have shown that these new  
            "breakthrough" medications cure 80%-95% of patients after  
            12-24 weeks of treatment with fewer side effects.  However,  
            Gilead Sciences, the manufacturer of Sovaldi,  has come under  
            heavy fire for the price of the drug treatment; the 12-week  
            treatment regimen has a retail price of $84,000.  Gilead  
            Sciences reported sales of $10.3 billion for Sovaldi in 2014.   
            After a year of market exclusivity for Sovaldi, Abbvie gained  
            FDA approval to market rival HCV treatment Viekira Pak in late  
            2014.  Pharmacy benefit managers (PBMs), like ExpressScripts  
            and CVS Caremark quickly signed deals that agreed to exclusive  
            coverage for specific brand drugs, in return for a hefty price  
            discount on the drug.  Other competitor drugs are currently in  
            final stages of clinical trials and could be on the market in  
            the near future, and increased competition in the market is  
            expected to bring costs down significantly.  In early 2015,  
            Gilead announced it would be offering rebates of up to 46% on  
            Sovaldi now that multiple rival drugs have entered the market.  




          5)Related Legislation.  AB 521 (Nazarian) requires patients who  
            have blood drawn at a general acute care hospital emergency  
            room to be offered an HIV test.








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          6)Previous Legislation.  



             a)   SB 1303 (Torres) of 2013 required every "qualifying  
               individual" who receives medical care to be offered a HCV  
               test.  SB 1303 was held in the Senate Health Committee.



             b)   AB 446 (Mitchell), Chapter 589, Statutes of 2013, among  
               other provisions, requires a patient between 12 and 65  
               years of age who has blood drawn at a primary care clinic  
               to be offered an HIV test.  



          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081