BILL ANALYSIS Ó AB 502 Page 1 Date of Hearing: April 28, 2015 ASSEMBLY COMMITTEE ON HEALTH Rob Bonta, Chair AB 502 Chau - As Amended April 22, 2015 SUBJECT: Dental hygiene. SUMMARY: Allows alternative dental hygiene practices to continue to operate and provide care within a certified shortage area, as specified, regardless of whether or not that area maintains a designation as a dental health professional shortage area (DHPSA) in the future. Allows registered dental hygienists in alternative practice (RDHAPs) to submit claims for dental hygiene services and requires health plans and insurers to provide reimbursement, as specified. Specifically, this bill: 1)Prohibits an alternative dental hygiene practice from being forced to close owing to a loss of its surrounding location's designation as a DHPSA under the following circumstances: a) The RDHAPs continue to serve patients that have no or limited access to dental care, including Medi-Cal program patients; and, b) At least 40% of the total alternative dental hygiene practice serves those underserved populations. AB 502 Page 2 2)Allows licensed dentists and dental assistants to be part of professional corporations of RDHAPs. 3)Requires health plans and policies that cover dental services, including specialized health plans and policies, to do the following: a) Allow RDHAPs to submit any claim for dental hygiene services; b) Reimburse an RDHAP for dental hygiene services that can be performed by a registered dental hygienist (RDH) if the plan or policy provides reimbursement for dental hygiene services; and, c) Use the same payment rates for RDHAPs as are provided to RDHs. EXISTING LAW: 1) Allows the licensure and regulation of registered dental hygienists, registered dental hygienists in extended functions, and registered dental hygienists in alternative practice by the Dental Hygiene Committee of California (DHCC). 2) Allows an RDHAP to perform various duties in specified settings, including DHPSAs, as certified by the Office of Statewide Health Planning and Development. AB 502 Page 3 3) Establishes the Knox-Keene Health Care Service Plan Act of 1975 under the administration and enforcement of the Department of Managed Health Care, and requires a health care service plan to reimburse claims, as specified. 4) Provides for the regulation of health insurers by the California Department of Insurance. 5) Establishes specified standards for health care service plan contracts covering dental services, health insurance policies covering dental services, specialized health care service plan contracts covering dental services, and specialized health insurance policies covering dental services. FISCAL EFFECT: This bill has not yet been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. The author states RDHAPs provide necessary professional preventive dental care to patients who typically have limited or no access to these services. The author states existing law limits access to RDHAPs by preventing those who practice in DHPSAs from continuing practice in those areas once they lose certification. In addition, the author contends RDHAPs are not currently AB 502 Page 4 provided with proper financial incentives to provide services, as health plans and insurers are denying reimbursement for RDHAP services, despite the services being equivalent to those billable services provided by an RDH. Finally, the author asserts there are no current business protections for RDHAPs in statute, though existing law authorizes them to incorporate. The author states this bill will remove barriers in existing law for RDHAPs to practice and increase public access to quality dental hygiene services. 2)BACKGROUND. a) California Health Benefits Review Program (CHBRP) Analysis. At the request of the Legislature, CHBRP, within the University of California, provides independent analyses of medical, financial, and public health impacts of proposed legislation regarding health insurance benefit mandates and repeals. The following background is based on the CHBRP review for this bill. i) RDHAPs. RDHAPs are a subset of RDHs who are authorized to practice in specified underserved areas, including residences of homebound individuals, schools, residential facilities, and DHPSAs. Although RDHAPs and RDHs share the same scope of practice, RDHs may not practice dental hygiene in the absence of an on-site dentist whereas RDHAPs, through additional schooling and a licensing process, may provide dental hygiene services without the supervision of a dentist. Once licensed, RDHAPs are able to administer dental hygiene services in designated alternative practice settings without the supervision of a dentist, provided that they identify a dentist for referrals, consultations, or emergencies. CHBRP estimates that RDHAPs annually provide dental hygiene services to approximately 598,400 patients. In a AB 502 Page 5 2009 survey, RDHAPs estimated that, on average, about a tenth of their patients were privately insured, a third were uninsured, and over half were covered through public assistance programs, such as Medi-Cal. ii) Current barriers to practice. According to DHCC, there are currently 563 licensed RDHAPs (524 of which are practicing) throughout California, as compared with approximately 31,000 licensed RDHs. Due to their small numbers, unique designation, and barriers to participation in some networks, RDHAPs often experience difficulty gaining recognition as providers from payers and receiving compensation for their services. In a 2009 descriptive survey of the RDHAP workforce, 82% of practicing RDHAPs reported maintaining employment in a traditional dental office setting for an average of three days per week in order to support two days of alternative practice, citing significant administrative barriers to receiving consistent reimbursement for services delivered under their RDHAP licensure. Accordingly, in 2009, RDHAPs identified administrative hassle as a significant impediment (4.0 on a 5-point scale) to providing direct patient care and reported spending approximately one-third of RDHAP practice time on administrative activities. iii) Policies in other states. There are currently 37 states, including California, that are direct-access states for dental hygienists, meaning that a dental hygienist can initiate treatment based on his or her assessment of patient's needs without the specific authorization of a dentist, treat the patient without the presence of a dentist, and can maintain a provider-patient relationship. These services are generally provided in settings such as Head Start centers, schools, federally qualified health centers (FQHCs), and long-term care facilities. In 16 states, AB 502 Page 6 there is statutory or regulatory language allowing the state Medicaid program to directly reimburse dental hygienists for services rendered. b) Federal criteria for DHPSAs. A geographic area will be designated as having a dental professional shortage if the following three criteria are met: i) The area is a rational area for the delivery of dental services; ii) One of the following conditions prevails in the area: (1) The area has a population to full-time-equivalent dentist ratio of at least 5,000:1; or, (2) The area has a population to full-time-equivalent dentist ratio of less than 5,000:1 but greater than 4,000:1 and has unusually high needs for dental services or insufficient capacity of existing dental providers. iii) Dental professionals in contiguous areas are overutilized, excessively distant, or inaccessible to the population of the area under consideration. Populations with unusually high needs for dental services are defined as those where more than 20% of the population has incomes below the poverty level, or areas where the majority of the population does not have a fluoridated water supply. AB 502 Page 7 c) Legislative oversight hearing. On March 17, 2014, the Senate Committee on Business, Professions, and Economic Development and the Assembly Committee on Business, Professions, and Consumer Protections held a joint oversight hearing to discuss a Sunset Review Report on the DHCC. The report discussed at the hearing identified barriers to RDHAP practice, including the closure of a dental practice when the area no longer meets criteria as a DHPSA, and the ability for DHAPs to collect payment for services rendered. The staff recommendation examined at the joint hearing included amending existing law to reduce these two specific barriers. d) Denti-Cal State Audit. On December 11, 2014, the California State Auditor issued a report titled "California Department of Health Care Services: Weaknesses in Its Medi-Cal Dental Program Limit Children's Access to Dental Care." The report stated that insufficient number of dental providers willing to participate in Medi-Cal, low reimbursement rates and a failure to adequately monitor the program, led to limited access to care and low utilization rates for Medi-Cal beneficiaries across the state. The Audit found that 16 counties either have no active providers or do not have providers willing to accept new Medi-Cal patients, and 16 other counties have an insufficient number of providers. Recent changes in federal and state laws that have expanded Medi-Cal coverage could increase the number of children and adults who can receive additional covered dental services from 2.7 million to as many as 6.4 million, bringing into question the state's ability to provide timely and adequate care to beneficiaries. AB 502 Page 8 e) Impact of this bill. The CHBRP analysis anticipates multiple impacts on the dental coverage of patients, and utilization rates for RDHAPs. There are currently no RDHAPs that participate as contracted network providers in DHMOs (dental health maintenance organizations) or DPPOs (dental preferred provider organizations) in the state. It is not anticipated that RDHAPs will become participating providers in either type of dental insurance plan under this bill due to their scope of practice and network participation requirements. Additionally, RDHAPs are already allowed to submit claims as out-of-network providers to DPPO plans, however the rate of reimbursement and likelihood of having the claim paid varies by plan, service, and the certification requirements of each plan. This bill is likely to increase the likelihood of claims being paid and RDHAPs being recognized by DPPOs as out-of-network providers only. Finally, reduced paperwork, changes to professional corporation requirements and staffing, certification requirements, and barriers to providing and being reimbursed for care will not change the out-of-network nature of RDHAP care or the limitations on where they can practice. However, it could increase the number and/or amount of time spent by RDHAPs practicing independently in DHPSAs and alternative practice settings. 3)SUPPORT. The California Dental Hygienists' Association, the AB 502 Page 9 sponsor of the bill, and supporters state this bill improves access to dental hygiene care for vulnerable populations that cannot easily access traditional dental offices by strengthening the RDHAP practice in current law. Supporters state RDHAPs are recognized dental providers that provide the healthcare system with innovative services essential to expanding dental services to patients throughout California. Supporters argue this bill removes current barriers to RDHAP practice and improves the ability of RDHAPs to take dental hygiene care to patients. 4)OPPOSITION. The California Dental Association states in opposition, on a prior version of the bill, the primary reason for the development of the RDHAP license is to bring dental hygiene services to dentally underserved populations and into underserved communities. According to the opposition, it is not aware of any existing problems with DHPSAs that have lost, or are in danger of losing, their designations and potentially reducing access to care, and that it is unclear what effect a DHPSA reclassification would have on the surrounding community. The opposition concludes that should guidelines should be placed into statute for RDHAPs who work in reclassified DHPSAs to ensure the practice retains the intent of the law to increase dental services to underserved populations. 5)PREVIOUS LEGISLATION. a) AB 1174 (Bocanegra), Chapter 662, Statutes of 2014, authorizes certain allied dental professionals, including RDHs and RDHAPs, to perform additional activities using telehealth. b) AB 1334 (Salinas), Chapter 850, Statutes of 2006, RDHAPs to provide services to patients without a prescription from a dentist or a physician and surgeon for the first 18 AB 502 Page 10 months after the first date of service. 6)POLICY COMMENT. At the time of this analysis, there do not appear to be records of existing DHPSAs within California losing their designation. The Committee may wish to consider the need for immediate action on these specific provisions of this bill, since the future needs and services provided for dental care of vulnerable populations may have changed by the time any DHPSAs lose their designation. 7)TECHNICAL AMENDMENT. This bill allows RDHAPs to continue to provide services in DHPSAs which have lost their classification, on the condition that they continue to provide services to patients who have limited or no access to dental care, and at least 40% of the practice serves those underserved populations. The current language is unclear as to whether the 40% requirement applies to the percentage of practicing providers who must serve an underserved population, or the percentage of clientele which must be underserved. The author has indicated the intent was to require the latter option in the bill; therefore the Committee may suggest the clarifying, technical amendment: In Section 1926 of the Business and Professions Code: (d) Dental health professional shortage areas, as certified by the Office of Statewide Health Planning and Development in accordance with existing office guidelines. An alternative dental hygiene practice established within a certified shortage area shall not be required to close due to the removal of the dental health professional shortage area designation if the registered dental hygienist in alternative practice continues to serve those patients that lack or have limited access to dental care including, but not limited to, Medi-Cal program patients, and at least 40 percent of the AB 502 Page 11 total patient population of the alternative dental hygiene practiceserves thoseis comprised of those underserved populations. REGISTERED SUPPORT / OPPOSITION: Support California Dental Hygienists' Association (sponsor) Several individuals (prior version) Opposition California Dental Association (prior version) Analysis Prepared by:An-Chi Tsou / HEALTH / (916) 319-2097 AB 502 Page 12