BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1950 (Maienschein) - Hearing aids: audio switch ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 25, 2016 |Policy Vote: B., P. & E.D. 8 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1950 would require licensed hearing aid dispensers and licensed dispensing audiologists to provide consumers with a disclosure developed by the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board that includes information about a specific technology used in some hearing aids. Fiscal Impact: One-time costs of about $100,000 and ongoing costs of $70,000 for the development of the consumer disclosure, adoption of regulations, and ongoing review of the necessary information in the disclosure by the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board (Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund). Potential additional costs of $50,000 to $150,000 per year to respond to consumer complaints and take disciplinary action by the Board (Speech-Language Pathology and Audiology and Hearing AB 1950 (Maienschein) Page 1 of ? Aid Dispensers Fund). There are about 230,000 purchases of hearing aids in the state each year. Of those purchases, a significant portion are for hearing aids that do not include the "telecoil" technology that would be the subject of the consumer disclosure under the bill. When a consumer is dispensed one type of hearing aid (under the professional judgment of the dispenser or audiologist) but also given information about a different type of hearing aid, some number of those consumers will be confused or feel that they have not been well served by the dispenser or audiologist. If even 1% of those consumers make a complaint to the Board, there will be substantial staff costs to process those complaints. Unknown impact on public health care programs such as Medi-Cal and CalPERS (various funds). The Medi-Cal program and most CalPERS health plans provide coverage for hearing aids. By providing information to consumers about a specific type of hearing aid technology, the bill may result in some consumers requesting a hearing aid with that technology, rather than a different hearing aid that would have been dispensed absent the consumer notification. To the extent that there is any consumer shift towards telecoil hearing aids under the bill, there could be cost implications for public programs that pay for hearing aids, if telecoil hearing aids are more expensive than the hearing aid a consumer would have been dispensed absent the disclosure. Background: Under current law hearing aid dispensers and audiologists are licensed and regulated by the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board. In general, hearing aids are devices that amplify ambient sound and are placed behind the ear, in the ear, or in the ear canal. In addition to amplifying ambient sound, there are technologies on the market to improve the function of hearing aids by working with outside systems. For example, "telecoil" (also referred to as "t-coil" or "t-switch") technology connects a hearing aid to an outside system that records sound in a room and then broadcasts it to telecoil devises, to improve the hearing experience. For example, a movie theater may be equipped with a telecoil system that transmits the sounds from the movie directly to the hearing aids of those in the theater using the telecoil technology in the hearing aid. There are other technologies that use Bluetooth or FM radio signals to provide AB 1950 (Maienschein) Page 2 of ? similar enhancements to the use of hearing aids. Proposed Law: AB 1950 would require licensed hearing aid dispensers and licensed dispensing audiologists to provide consumers with a disclosure developed by the Speech-Language Pathology and Audiology and Hearing Aid Dispensers Board with information about a specific technology used in some hearing aids. Specific provisions of the bill would: After July 1, 2017, require a licensed hearing aid dispenser or a licensed dispensing audiologist, upon the sale of a hearing aid, to provide the purchaser with a copy of a consumer hearing aid disclosure developed by the Board; Before July 1, 2017, require the Board to develop a consumer hearing aid disclosure that provides information for the benefit of consumers, including information on telecoil, t-coil, or t-switch. Staff comments: The only costs that may be incurred by a local agency relate to crimes and infractions. Under the California Constitution, such costs are not reimbursable by the state. -- END --