BILL ANALYSIS Ó
AB 572
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
572 (Beth Gaines) - As Amended April 16, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the California Department of Public Health
(CDPH) to create a detailed diabetes action plan for the state,
and to report the results of the plan to the legislature
biennially. Requirements include the development of a detailed
budget blueprint identifying needs, costs, and resources
AB 572
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required to implement the plan and a proposed budget for each
action step, as well as policy recommendations for the
prevention and treatment of diabetes.
FISCAL EFFECT:
1)Costs of $275,000 in the first year for staff and contract
costs for fiscal and economic analysis, and $125,000 (GF) for
one full-time staff to track progress and report biennially.
2)Potentially significant up-front cost pressure to fund action
steps to prevent and control diabetes, with potentially
significant long-term savings if such action is successful.
Diabetes is a very costly condition (nearly $11,000 on average
per year to treat, per case) and a prevalent condition (nearly
half of the California population has diabetes or
pre-diabetes, with diagnosed diabetes representing about
6.4%). Lower-income populations and people of color suffer
from diabetes disproportionately, and these populations are
also more likely to receive care through Medi-Cal, meaning
successful interventions to prevent and control diabetes could
have significant potential for long-term state savings.
COMMENTS:
1)Purpose. According to the author, diabetes has reached
epidemic levels in California. The author contends that the
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State of California has no action plan that specifically
addresses the fiscal impact of diabetes.
2)Background. There is evidence the high and growing prevalence
of diabetes in the American populations is an economic burden.
A recent economic analysis in the journal Diabetes Care places
the total economic burden at $322 billion (or over $1,000 per
person in the United States), of which $244 billion is in
excess medical costs. According to the study's authors, the
results "underscore the urgency to better understand the cost
mitigation potential of prevention and treatment strategies."
This bill appears to address the question of cost mitigation.
A January 2015 State Audit report found California's spending
on diabetes prevention was minimal and suggested that if the
Legislature wishes CDPH to address diabetes, state funding
should be appropriated for that purpose.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081