BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1739


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          Date of Hearing:  April 27, 2016 


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1739 (Waldron) - As Amended April 19, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Department of Health Care Services  
          (DHCS), in the evaluation of patients for allergy under  
          fee-for-service (FFS) Medi-Cal, to treat serologic-specific  
          immunoglobulin E (IgE) tests (blood tests) and skin tests as  
          equivalent confirmatory tests.  


          FISCAL EFFECT:








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          Uncertain, likely minor overall fiscal effect in the FFS  
          Medi-Cal program (GF/federal).  Blood testing utilization could  
          go up, while utilization of skin tests could go down.  The net  
          effect is unknown. 





          COMMENTS:





          1)Purpose.  This bill is intended to ensure that Medi-Cal  
            patients with allergies receive timely diagnoses.  Under  
            current practice, 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 can only do so under certain  
            circumstances. The author notes this bill will facilitate  
            reimbursement for blood tests offered by primary care  
            providers, which the author indicates will increase access to  
            allergy diagnostic testing.


          2)Background.  Allergy and asthma are prevalent in the general  
            population.  In California, an estimated 2.5 million adults  
            have asthma along with about 700,000 children. With respect to  
            food allergies, a recent study 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. 










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            DHCS and other payers often translate guidelines into medical  
            coverage specifications. Medi-Cal coverage for allergy testing  
            aligns with 2008 guidelines issued by the American Academy of  
            Allergy, Asthma & Immunology (AAAAI).  Guidelines by other  
            organizations, such as the National Institutes of Health, also  
            address the effectiveness of allergy diagnostic tests.  The  
            AAAAI guidelines upon which Medi-Cal's coverage policy are  
            based are being updated this year.


            Proponents of this bill note the 2008 guidelines are out of  
            date, and also note practical considerations that Medi-Cal  
            patients face obtaining allergy skin testing, which requires  
            an appointment with an allergist.  Unlike skin tests, blood  
            tests can be administered in a primary care setting.  


            This issue was the subject of an August 12, 2014 Assembly  
            Health Committee informational hearing, which focused broadly  
            on the potential for utilization controls to interfere with  
            providing access to the standard of care, as well as  
            specifically on reimbursement for allergy diagnostic testing.   
            Subsequent to the hearing, on May 15, 2015, Medi-Cal removed  
            the requirement that laboratories submit documentation of  
            medical necessity with claims for blood test reimbursement.   
            However, other limitations on Medi-Cal coverage for blood  
            tests remain.


            It should be noted, however, that diagnostic tests are not a  
            slam dunk for diagnosing allergies. A 2012 article in the  
            journal Pediatrics providing guidelines to pediatricians  
            discusses the complexity of allergy diagnosis, and notes a  
            detection of sensitization to an allergen through a blood test  
            is not equivalent to a clinical diagnosis. Many children with  
            positive tests have no clinical illness when exposed to the  
            allergen. They indicate this limitation highlights the need  
            for the clinician to use a detailed medical history and have  
            knowledge of the features of the specific illness when  








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            selecting and interpreting tests.  In essence, these tests  
            require a level of training in how to interpret them in light  
            of other relevant patient-level considerations outside of the  
            blood test results. Because test limitations often warrant  
            additional evaluation to confirm the role of specific  
            allergens, the article advises a consultation with a  
            board-certified allergist-immunologist should be considered.


          3)Staff Comments. Evidence-based coverage guidelines generally  
            ensure care is provided in a manner supported by science and  
            medical consensus.  These guidelines are constantly evolving  
            as new research is published and reviewed. This bill, as  
            written, would statutorily dictate specific coverage  
            parameters for certain tests, which is not common practice,  
            and has the disadvantage of being static and less flexible to  
            changing guidelines as well as lacking review by medical  
            professionals.  Staff also notes the clinical guidelines upon  
            which Medi-Cal coverage is based are already in the process of  
            being updated, raising questions of whether this bill is  
            premature.  On the other hand, if difficulty and hassle  
            accessing allergists and receiving skin tests delay or prevent  
            diagnosis of allergy where it would be helpful, there seems to  
            be merit to considering the real-world impact of  coverage  
            guideline on access to timely and appropriate care in a  
            real-world setting.   


          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081

















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