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