BILL ANALYSIS Ó AB 1114 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1114 (Eggman) As Amended August 24, 2016 2/3 vote. Urgency -------------------------------------------------------------------- |ASSEMBLY: |79-0 |(June 1, 2015) |SENATE: |38-1 |(August 25, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- ---------------------------------------------------------------------- | | | | | | | | | | | | |COMMITTEE VOTE: |16-0 |(August 30, |RECOMMENDATION: |concur | | | |20160 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ---------------------------------------------------------------------- (Health) Original Committee Reference: HEALTH SUMMARY: Requires specified pharmacy services to be covered under Medi-Cal, and specifies the rate of reimbursement for AB 1114 Page 2 these services at 85% of the fee schedule for physician services under Medi-Cal. Contains an urgency clause to ensure that the provisions of this bill go into immediate effect after enactment. Specifically, this bill: 1)Specifies the following pharmacy services as a benefit under the Medi-Cal program, subject to approval by the federal Centers for Medicare and Medicaid Services: a) Furnishing travel medications; b) Furnishing naloxone hydrochloride; c) Furnishing self-administered hormonal contraception; d) Initiating and administering immunizations; and, e) Providing tobacco cessation counseling and furnishing nicotine replacement therapy. 2)Requires the Department of Health Care Services (DHCS) to do the following: a) establish a fee schedule for the list of pharmacist services; and, b) specify the rate of reimbursement to be at 85% of the fee schedule for physician services under Medi-Cal. 3)Requires a pharmacist to be enrolled as an ordering, referring, and prescribing provider under the Medi-Cal program prior to rendering a pharmacist service that is submitted by a Medi-Cal pharmacy provider for reimbursement under this bill. 4)Requires the Director of DHCS to seek any necessary federal approvals for purposes of this bill, prohibits implementation AB 1114 Page 3 until such approvals are obtained, and implemented only if federal financial participation is available. 5)Specifies that this bill does not restrict nor prohibit any services currently provided by pharmacists as authorized by law, as specified. 6)Authorizes DHCS to implement, interpret, or make specific this bill, without taking any regulatory action, as specified. Requires DHCS to adopt regulations by July 1, 2021 and provide a status report to the Legislature, as specified. The Senate amendments require specified pharmacist services to be covered under Medi-Cal. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)One-time costs of $400,000 to $600,000 to make changes to the system for processing Medi-Cal payments to allow pharmacist services to be reimbursed at the rate level specified in this bill (25% General Fund and 75% federal funds). 2)Unknown cost savings due to a shift from services being provided by physicians to those services being provided by pharmacists (General Fund and federal funds). Under this bill, Medi-Cal beneficiaries would be able to access certain services from a pharmacist without the need to see a physician to get a prescription. This bill requires pharmacists to be reimbursed at 85% of the rate paid to physicians. The extent of the cost savings from shifting from physician services to pharmacist services is unknown. 3)Likely overall cost savings to the Medi-Cal program due to increased utilization of certain drugs prescribed and AB 1114 Page 4 dispensed by pharmacists (General Fund and federal funds). Under this bill, it is likely that there will be increased utilization of certain drugs, because it will be easier for some Medi-Cal beneficiaries to access those drugs directly from a pharmacist without the need for a physician visit. Under current law, the drugs that can be provided by a pharmacist in this manner include smoking cessation drugs, contraceptives, naloxone (a drug that prevents opioid overdoses), and immunizations. These types of drugs have been shown to result in overall health care cost savings, so it is likely that any overall increase in their utilization by Medi-Cal beneficiaries is likely to reduce long-term Medi-Cal spending. COMMENTS: According to the author, regulations were recently finalized (2016) to allow California pharmacists to provide hormonal contraceptives, the opioid overdose drug naloxone, and nicotine replacing products for smoking cessation directly to patients. This bill will improve access to these vital health services by authorizing the DHCS to establish a system for pharmacists to provide services in the Medi-Cal program. This bill was not introduced earlier this year because the last regulations to implement new pharmacist authorities were not finalized until after the bill introduction deadline. Discussions have since progressed with DHCS on the best structure for this bill. The author concluded this bill is necessary to pass this bill this year so that Medi-Cal patients can gain access to these health care services right away. The Pharmacy Act authorizes pharmacists to furnish compounded drug products, transmit a valid prescription to another pharmacist, and administer drugs and biologicals pursuant to a prescriber's order. SB 493 (Hernandez), Chapter 469, Statutes of 2013, expanded the scope of pharmacists to authorize them to furnish self-administered hormonal contraceptives, vaccines, nicotine replacement products, and travel medications. Additionally, SB 493 authorized the Board of Pharmacy (BOP) to recognize Advance Practice Pharmacists who can perform patient assessments, order and interpret drug therapy-related tests, refer patients to other health care providers, participate in the evaluation and management of diseases and health conditions AB 1114 Page 5 in collaboration with other health care providers, and initiate, adjust, or discontinue drug therapy. AB 1535 (Bloom), Chapter 326, Statutes of 2014, additionally authorized pharmacists to furnish naloxone hydrochloride. Regulations were adopted by the BOP on the furnishing of naloxone and nicotine replacement products on January 2016 and the furnishing of self-administered hormonal contraceptives were adopted in April 2016. The regulations for the furnishing of travel medications, and administration of vaccinations are currently pending. Analysis Prepared by: Rosielyn Pulmano / HEALTH / (916) 319-2097 FN: 0005002