BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1117


                                                                      Page  1





          ASSEMBLY THIRD READING


          AB  
          1117 (Cristina Garcia)


          As Amended  June 1, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Health          |18-0  |Bonta, Maienschein,  |                     |
          |                |      |Bonilla, Burke,      |                     |
          |                |      |Chávez, Chiu, Gomez, |                     |
          |                |      |Gonzalez, Roger      |                     |
          |                |      |Hernández, Lackey,   |                     |
          |                |      |Nazarian, Patterson, |                     |
          |                |      |Ridley-Thomas,       |                     |
          |                |      |Rodriguez, Santiago, |                     |
          |                |      |Steinorth, Thurmond, |                     |
          |                |      |Wood                 |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |13-1  |Gomez, Bonta,        |Bigelow              |
          |                |      |Calderon, Chang,     |                     |
          |                |      |Daly, Eggman,        |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Quirk, Rendon,       |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |








                                                                      AB 1117


                                                                      Page  2





           ------------------------------------------------------------------- 


          SUMMARY:  Establishes a pilot program in Medi-Cal to reward  
          Medi-Cal managed care organizations (MCOs) and providers for  
          vaccinating children younger than two years of age.  Specifically,  
          this bill:  
          1)Directs the Department of Health Care Services (DHCS) to  
            establish and administer the California Childhood Immunization  
            Quality Improvement Fund (CCIQIF).
          2)Requires DHCS to apply to the Federal Centers for Medicare and  
            Medicaid Services for a waiver or demonstration project to  
            implement the CCIQIF within 270 days of the enactment of this  
            bill.


          3)Requires DHCS to consult with stakeholders including the  
            Medi-Cal Children's Health Advisory Panel and the Managed Care  
            Advisory workgroup.


          4)Directs DHCS to finance the program with voluntary contributions  
            from MCOs which must be used to draw down federal match for the  
            program.


          5)Provides the demonstration project shall be implemented only if  
            federal financial participation is available and any necessary  
            federal approvals have been obtained. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)DHCS would incur costs in the range of low hundreds of thousands  
            of dollars (program revenues/federal funds), to develop and seek  
            federal approval for a program.  The annual administrative costs  
            would be of a similar magnitude.








                                                                      AB 1117


                                                                      Page  3







          2)It is unclear precisely how much funding would be raised.  A  
            successful incentive program could be about $30 million per year  
            (program revenues/federal funds), with $10 million allocated to  
            provider support.


          COMMENTS:  According to the author, Medi-Cal health plans and  
          providers need greater investments and supports to provide the  
          quality health care services that they are required to deliver to  
          young children and that parents and taxpayers deserve.  The author  
          argues this bill would bring additional resources to the health  
          care system to help improve California's relatively low  
          vaccination rates for two-year-olds, without impacting parents'  
          ability to make decisions about their children's health care.  The  
          author notes there is no existing law to incentivize Medi-Cal  
          managed care plans and providers to fully immunize two-year-olds,  
          and as a result, Medi-Cal has been chronically plagued by low  
          childhood immunization rates resulting in inefficient use of  
          public monies and creating a serious public health risk, as  
          demonstrated by the recent whooping cough and measles outbreaks. 


          According to the Centers for Disease Control and Prevention,  
          vaccines contain the same antigens or parts of antigens that cause  
          diseases, but the antigens in vaccines are either killed or  
          greatly weakened. Vaccine antigens are not strong enough to cause  
          disease, but they are strong enough to make the immune system  
          produce antibodies against them.  Memory cells prevent  
          re-infection when they encounter that disease again in the future.  
           Vaccines are responsible for the control of many infectious  
          diseases that were once common around the world, including polio,  
          measles, diphtheria, pertussis (whooping cough), rubella (German  
          measles), mumps, tetanus, and Hepatitis b.  Vaccine eradicated  
          smallpox, one of the most devastating diseases in history.  Over  
          the years, vaccines have prevented countless cases of infectious  
          diseases and saved literally millions of lives.  









                                                                      AB 1117


                                                                      Page  4






          California children are required to be fully vaccinated before  
          they enter kindergarten, with some exceptions.  However, there are  
          no official requirements for younger children, who are often more  
          susceptible to dire consequences from vaccine-preventable diseases  
          due to their immature immune systems.


          Supporters note that vaccination rates for kids are not as high as  
          they need to be, posing a risk for all children.  They point to  
          the risk of failing to vaccinate children by the 11,000 cases of  
          pertussis in California in 2014 and the more recent measles  
          outbreak in Disneyland.  Supporters point out that although there  
          are requirements for children to be vaccinated prior to going to  
          school, there are no official requirements for younger children  
          who often are more susceptible to dire consequences from  
          infectious diseases because of their immature immunes systems.   
          Supporters add that other states, such as New York, Louisiana, and  
          Maine have had successful programs to increase vaccination rates  
          in young children.


          A number of individuals are opposed to this bill.




          Analysis Prepared by:                                               
                          Roger Dunstan / HEALTH / (916) 319-2097  FN:  
          0000843

















                                                                      AB 1117


                                                                      Page  5