BILL ANALYSIS Ó AB 572 Page 1 ASSEMBLY THIRD READING AB 572 (Beth Gaines) As Amended April 16, 2015 Majority vote ----------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+--------------------| |Health |17-0 |Bonta, Maienschein, | | | | |Bonilla, Burke, | | | | |Chávez, Chiu, | | | | |Gomez, Gonzalez, | | | | |Lackey, Nazarian, | | | | |Patterson, | | | | | | | | | | | | | | |Ridley-Thomas, | | | | |Rodriguez, | | | | |Santiago, Thurmond, | | | | |Waldron, Wood | | | | | | | |----------------+------+--------------------+--------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, | | | | |Eggman, Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | AB 572 Page 2 | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | | | | | | ----------------------------------------------------------------- SUMMARY: Requires the California Department of Public Health (DPH) 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 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: According to the Assembly Appropriations committee: 1) Costs of $275,000 in the first year for staff and contract costs for fiscal and economic analysis, and $125,000 (General Fund) ongoing until the 2024 sunset 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. COMMENTS: According to the author, diabetes has reached epidemic levels in California. Some estimate the yearly cost of diabetes in California to be over $24.5 billion. The author points out that California has no statutory requirements in place for the prevention and management of diabetes, and states that the State of California has no action plan that specifically addresses the fiscal impact of diabetes. AB 572 Page 3 Diabetes is a chronic medical condition marked by high levels of blood glucose (a form of sugar) resulting from defects in insulin production, insulin action, or both. Ethnic minorities and those who are poor or disadvantaged have especially high rates of diabetes. In 2010, one in seven African American (14.3%), one in nine American Indian/Alaskan Natives/Native Hawaiian/Other Pacific Islander (11.6 %), one in 10 Latino (10.9%), one in 11 Asian American (7.7%), and one in 14 white (7.0%) adults had diagnosed diabetes. There is no known cure for diabetes. Increased risk of heart disease, stroke, and kidney damage (and the need for dialysis as a result) are the most deadly effects. Uncontrolled high blood sugars may also affect the eyes and cause blindness. Diabetes frequently affects circulation, and a simple cut on the foot can lead to an amputation due to infection. Diabetics tend to experience longer hospitalizations and mortality rates. According to the California Diabetes Program, diabetes costs in California exceed $24 billion each year. Direct medical costs (e.g., hospitalizations, medical care, treatment, supplies) account for about $18.7 billion, the other $5.8 billion include indirect costs such as disability payments, time lost from work, and premature death. The average annual treatment cost per case for diagnosed diabetes in the U.S. was nearly $10,000 in 2007. California has an estimated 3.9 million adults with diabetes (2010), and the numbers are rising rapidly. In January 2015, The California State Auditor published report 2014-113, titled "Even With a Recent Increase in Federal Funding, Its Efforts to Prevent Diabetes Are Focused on a Limited Number of Counties." The report highlighted the fact that DPH manages federal grants that fund its diabetes prevention efforts. California does not provide any state funding for diabetes prevention. The recommendations of the report were that the state should consider providing state funding to support efforts to address diabetes, that DPH should develop a process for AB 572 Page 4 identifying and applying for federal funding opportunities, including routinely and proactively searching for grants, and DPH should ensure that staff responsible for diabetes prevention continues to develop appropriate knowledge and skills. The California Black Health Network supports this bill due to the states lack of plan to mitigate the escalating fiscal impact of diabetes. They point out that while there has been extensive legislation enacted to promote awareness and cost saving measures for conditions such as cardiovascular disease and tobacco addiction, current law is woefully inadequate in regards to diabetes. There is no known opposition to this bill. Analysis Prepared by: Dharia McGrew / HEALTH / (916) 319-2097 FN: 0000614