BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 648 (Low) - Community-based services:  Virtual Dental Home  
          program
          
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          |Version: June 29, 2015          |Policy Vote: HEALTH 8 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 27, 2015   |Consultant: Brendan McCarthy    |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 27, 2015


          Bill  
          Summary:  AB 648 would establish a grant program to provide  
          funding to support virtual dental homes. The bill would  
          authorize $3 million from a specified special fund to be used  
          for the program.


          Fiscal  
          Impact:  
           One-time authorization of $3 million (California Health  
            Facilities Financing Authority Fund).  (Because the Fund is  
            continuously appropriated in law, the spending authorization  
            in this bill appropriates $3 million for the purposes of the  
            bill.)

           Unknown increase in Medi-Cal spending for dental procedures  
            (General Fund and federal funds). The Medi-Cal program  







          AB 648 (Low)                                           Page 1 of  
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            provides dental coverage for children and limited coverage for  
            adults. According to a report by the State Auditor,  
            utilization of dental services by Medi-Cal beneficiaries is  
            low compared to other states. In part, this is due to limited  
            availability of dental providers willing to see new patients  
            at the rates paid by the Medi-Cal program. The virtual dental  
            home model has the potential to increase access, by bringing  
            care to individuals who are not otherwise being served. To the  
            extent this happens, it could increase Medi-Cal expenditures  
            for dental service. On the other hand, early interventions  
            through a virtual dental home model may reduce future costs by  
            catching problems early. The extent to which the savings from  
            early interventions will offset the costs of overall increases  
            in utilization is unknown.


          Committee  
          Amendments:  Shift the source of funding for the program from  
          the General Fund to an existing special fund, reduce the amount  
          authorized to $3 million, and require the program to be  
          implemented by the California Health Facilities Financing  
          Authority.


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