BILL ANALYSIS Ó AB 1831 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1831 (Low) As Amended August 15, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |71-8 |(June 1, 2016) |SENATE: |37-0 |(August 17, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY: Requires health care service plans (health plans) and health insurers to provide coverage for early refills of prescription topical ophthalmic products (TOPs). The Senate amendments: 1)Add language delaying implementation until July 1, 2017. 2)Delete language allowing for early refills of TOPs at 70% of the predicted days of use. 3)Add language specifying standards for early refills of TOPs: AB 1831 Page 2 a) For a 30-day supply, at least 23 days and less than 30 days from the later of either of the following: i) The original date that the prescription was distributed to the enrollee or insured; or, ii) The date of the most recent refill that was distributed to the enrollee or insured. b) For a 90-day supply, at least 68 days and less than 90 days from the later of either of the following: i) The original date that the prescription was distributed to the enrollee or insured; or, ii) The date of the most recent refill that was distributed to the enrollee or insured. 4)Add language prohibiting an enrollee or insured's refill request from exceeding the number of additional quantities prescribed by the enrollee or insured's participating health plan or health insurer provider. 5)Add language specifying that this bill does not prevent a health plan contract or health policy from allowing for early refills at or below 75% of the predicted days of use. FISCAL EFFECT: According to the Senate Appropriations Committee, 1)Minor costs to review health insurer filings and take enforcement actions, as necessary, by the Department of Insurance (Insurance Fund). AB 1831 Page 3 2)Minor costs to review health plan filings and take enforcement actions, as necessary, by the Department of Managed Health Care (Managed Care Fund). 3)Ongoing costs of about $200,000 per year for increased utilization of covered TOPs by Medi-Cal beneficiaries (General Fund and federal funds). The California Health Benefits Review Program analyzed a prior version of this bill that would have required early refills at 70% of predicted use days. Based on the current version of this bill, which requires early refills at 76% - 77% of predicted days, the costs to the Medi-Cal program are likely to be about one-half of the previously projected costs. 4)Minor costs to the California Public Employees' Retirement System due to increased prescription drug benefit costs (various funds). Similar to the costs projected for the Medi-Cal program, the costs of this bill are likely to be about one-half of the previously projected costs. 5)No state cost to subsidize health care coverage through Covered California is anticipated. Under federal law, any new mandated health benefit that exceeds the benefits in the state's essential health benefits benchmark plan would be a state responsibility. In other words, to the extent that the state imposes a new benefit mandate that exceeds the essential health benefits benchmark, the state would be responsible for paying for the cost to subsidize that benefit for those individuals who are receiving subsidized coverage through Covered California. Because this bill does not mandate a new benefit, but only change the terms of an existing benefit (prescription drugs), this bill is not expected to result in the state being responsible for subsidizing coverage. COMMENTS: According to the author, poor medication adherence is a major barrier to achieving better patient outcomes. TOPS are AB 1831 Page 4 used to treat a variety of conditions including: uveitis, conjunctivitis, dry eye, and glaucoma. Successful and effective treatment for these eye-related conditions requires proper administration of the medication. Eye drops can be difficult to self-administer; a shaky hand can cause drops to hit the patient's cheeks or make two eye drops come out at once. This unavoidable waste is one reason that some patients run out of their eye drops too soon. Interruptions in drug therapy for eye-related conditions potentially have serious consequences, including irreversible vision loss. Glaucoma patients are often elderly and have difficulty dispensing the appropriate amount of eye drops, thereby requiring early refills of their medication. When patients run out of eye drops before the scheduled refill, they may have to pay the full cost of the prescription. But when faced with the option of paying full price for the prescription or waiting until the scheduled refill date, many choose to go without the medication for a week or more instead of paying out of pocket. A study on glaucoma treatment adherence cited an inadequate amount of medication available between scheduled prescription refills as a central barrier to patient compliance. By allowing early refill for users of TOPs, patients are able to manage the disease and prevent interruptions in drug therapy that can potentially have serious consequences. In 2010, the Centers for Medicare and Medicaid Services (CMS) re-issued guidance on "Early Refill Edits on TOPs." The reissuance was based on complaints CMS had received regarding the application of early refill edits (i.e. refill-too-soon edits) to TOPs. In the guidance, CMS recommended that Medicare drug plans permit refills at 70% of the predicted days of use and permit physicians to authorize earlier refills for particular beneficiaries who continue to have difficulty with inadvertent wastage. Analysis Prepared by: Kristene Mapile / HEALTH / (916) 319-2097 FN: 0004178 AB 1831 Page 5