BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1739


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          Date of Hearing:  April 12, 2016


                            ASSEMBLY COMMITTEE ON HEALTH


                                   Jim Wood, Chair


          AB 1739  
          (Waldron) - As Amended March 16, 2016


          SUBJECT:  Medi-Cal:  allergy testing.


          SUMMARY:  Requires the Department of Health Care Services  
          (DHCS), in the evaluation of patients for allergy under  
          fee-for-service Medi-Cal, to treat serologic-specific IgE tests  
          and skin tests as equivalent confirmatory tests.  Specifically,  
          this bill:  


          1)Requires DHCS to treat serologic-specific IgE tests and  
            percutaneous skin tests equivalent tests in terms of their  
            sensitivity and accuracy, and to treat them as medically  
            necessary for those individuals with a medical history  
            consistent with any of the following:


             a)   An inhalant allergy;


             b)   A food allergy;


             c)   Hymenoptera venom allergy or an allergy to stinging  
               insects;









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             d)   Allergic bronchopulmonary aspergillosis;


             e)   Certain parasitic diseases; and,


             f)   Allergies to specific drugs.


          2)Requires DHCS to update its provider bulletins, as necessary,  
            to reference the most current professional literature and  
            guidance related to allergy testing.


          EXISTING LAW:  


          1)Establishes the Medi-Cal program, administered by DHCS, under  
            which qualified low-income patients receive health care  
            benefits.  Medi-Cal is California's version of the federal  
            Medical program in which funding is provided by both the state  
            and federal government.


          2)Provides for a schedule of benefits under the Medi-Cal  
            program, and authorizes the use of utilization control,  
            including prior authorization, that may be applied to those  
            covered benefits and that are reviewed for, among, other  
            things, medical necessity.


          FISCAL EFFECT:  This bill has not yet been analyzed by a fiscal  
          committee.


          COMMENTS:  










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          1)PURPOSE OF THIS BILL.  According to the author, this bill  
            ensures that Medi-Cal patients with allergies receive the same  
            level of care as private health insurance patients based on  
            nationally recognized professional guidelines.  Under existing  
            coverage and payment policies for fee-for-service Med- Cal  
            patients, allergy testing using an IgE blood test is not  
            treated equally with percutaneous skin testing for allergies.   
            If a primary care physician wishes to diagnose allergies, a  
            referral to a specialist for skin testing is allowed.   
            However, if the primary care physician wishes to order a blood  
            test to diagnose allergies without a referral, the physician  
            must document a contraindication to skin testing for the blood  
            test to be ordered.  This bill will ensure that primary care  
            doctors are able to diagnose allergies without referral to a  
            specialist and will therefore save Medi-Cal patients the time  
            and effort it takes to find, make an appointment and see one  
            of the limited number of specialists who accept Medi-Cal  
            patients.  The author believes this will further save the  
            Medi-Cal system money by reducing the costs associated with  
            referrals to specialists.


          2)BACKGROUND.  Asthma is a chronic inflammatory disease of the  
            airways.  Asthma is widespread; in California an estimated 2.5  
            million adults have asthma along with about 700,000 children.   
            It is one of the most common chronic diseases of childhood.   
            The exact cause of asthma is unknown and it cannot be cured.   
            Asthma can be controlled with self-management education,  
            appropriate medical care, and avoiding exposure to  
            environmental triggers. Allergen exposure is a significant  
            trigger that can worsen symptoms for many patients with  
            asthma.





            Food allergies are an immune-based disease that has become a  
            serious health concern in the United States. A recent study  








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            estimates that food allergy affects 5% of children under the  
            age of five years and 4% of teens and adults, and its  
            prevalence appears to be on the increase. The symptoms of this  
            disease can range from mild to severe and, in rare cases, can  
            lead to anaphylaxis, a severe and potentially life-threatening  
            allergic reaction. There are no therapies available to prevent  
            or cure food allergies. The only prevention option for the  
            patient is to avoid the food allergen. 

            How best to determine what those allergens are, and how  
            Medi-Cal coverage policy should approach this issue, was the  
            subject of an August 12, 2014 Assembly Health Committee  
            informational hearing, Medi-Cal: When Reimbursement Policies  
            Interfere with the Standard of Care.  Subsequent to the  
            hearing, on May 15, 2015, Medi-Cal removed the requirement  
            that laboratories submit documentation of medical necessity  
            with claims for IgE testing reimbursement.  However,  
            limitations on Medi-Cal coverage for IgE which did not apply  
            to skin testing remain.

          3)MEDI-CAL PROVIDER MANUAL.  The current Medi-Cal Provider  
            Manual states that coverage for allergen specific IgE must  
            include documentation in the patient's medical record with one  
            of the following numbered criteria:
                 "1.       The patient has persistent asthma and the  
                 test is needed to determine the potential  
                 sensitivity to perennial indoor allergens to which  
                 the patient is exposed, or


                 2.        At least one of the following conditions  
                 is documented in the patient's medical record:


                          Widespread skin disease


                          Patients receiving medications that may  
                 confound the results of skin testing or interfere  








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                 with the detection or management of anaphylaxis


                          Uncooperative patients


                          When the history suggests significant risk  
                 of anaphylaxis from skin testing


                          Patients undergoing work-up for major  
                 allergic reaction, including possible anaphylaxis or  
                 severe urticarial."


            The provider manual also states that manual review of the  
            claims is no longer required.  Without evidence of medical  
            necessity documented in the patient's medical record, claims  
            billed may be denied.





            In correspondence between the former Chair of the Assembly  
            Health Committee and the Director of DHCS the former Chair  
            expressed his concern that Medi-Cal policy, even with the  
            changes of May 15, 2016, unnecessarily inhibits access and  
            timely care for many Medi-Cal patients and is inconsistent  
            with the latest science or with many policies in the  
            commercial markets and other state Medicaid programs. 



          4)IgE COVERAGE POLICY BY OTHER INSURERS.  Anthem Health  
            Insurance and Kaiser Permanente both cover allergy blood tests  
            and skin tests equivalently.  According to information   
            requested by the Committee and provided by the sponsor, two of  
            six Medicare claims processing contractors (representing 20  








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            states) treat blood tests and skin test equivalently,  the  
            others currently do not.  The sponsor states that it has  
            embarked on an educational campaign with the other 4  
            contractors.  

          5)MEDICAL LITERATURE.  In a December 2010 report of the National  
            Institute of Allergy and Infectious Diseases (NIAID) sponsored  
            expert panel entitled Guidelines for the Diagnosis and  
            Management of Food Allergy in the U.S., published in the  
            Journal of Allergy and Clinical Immunology, it is stated that  
            both IgE blood tests and skin tests are safe and useful for  
            identifying food allergies. In a February 2010 article in the  
            Journal of Allergy and Clinical Immunology from Johns Hopkins  
            School of Medicine entitled Clinical Laboratory Assessment of  
            Immediate-type Hypersensitivity it is stated that:  "For food  
            and respiratory  allergy,  IgE antibody  as  detected  in  the  
             serum by  using current autoanalyzer  technology  and  in   
            the  skin  by  using  the epicutaneous  test are considered  
            equivalent as confirmatory tests in terms of their sensitivity  
            and accuracy. " In a supplement to the March 2008 issue of the  
            Annals of Allergy, Asthma, & Immunology entitled Allergy  
            Diagnostic Testing: An Updated Practice Parameter, it is  
            stated that:  "There are no clinical scenarios in which  
            immunoassays for allergen specific IgE can be considered  
            either absolutely indicated or contraindicated. There are some  
            situations in which immunoassays may be preferable to skin  
            testing for the diagnostic evaluation of patients." 


            


          6)SUPPORT.  Thermo Fisher Scientific, the sponsor of this bill,  
            argues that Medi-Cal's coverage policy for allergy testing is  
            inconsistent with national guidelines, best practices, and the  
            most recent scientific literature.  Food allergy guidelines of  
            the NIAID and the asthma guidelines of the National Heart,  
            Lung, and Blood Institute's recognize that blood tests and  
            skin tests are equivalent in their efficacy for diagnosing  








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            allergic sensitizations.  Miller Children's Hospital in Long  
            Beach states that updating testing guidelines will have a  
            major positive impact on Medi-Cal patients suffering from  
            allergies.  In a perfect world, every patient suffering from  
            an allergic disease would receive their care from a  
            specialist.  Unfortunately, allergy specialists are a very  
            scarce resource especially for the Medi-Cal population, with  
            unacceptably long wait times.  It is not realistic for DHCS,  
            or any payer, to rely solely on the efforts of specialists to  
            be able to skin test every Medi-Cal patient that requires an  
            allergy test.


          7)TECHNICAL AMENDMENT.  The Committee may suggest the following  
            amendment:  On page 3, line 17-18, delete "treat them as  
            medically necessary" and replace with "provide the same  
            standard of coverage for either test."


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Thermo Fisher Scientific (sponsor)


          Miller Children's Hospital




          Opposition


          None on file.








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          Analysis Prepared by:John Gilman / HEALTH / (916) 319-2097