BILL ANALYSIS Ó AB 2050 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2050 (Steinorth) - As Amended March 18, 2016 ----------------------------------------------------------------- |Policy |Health |Vote:|18 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill requires health plans and insurers to implement a procedure for aligning the refill dates of an enrollee's prescription drugs so that prescriptions that are refilled at the same frequency may be refilled concurrently. FISCAL EFFECT: 1)According to the California Health Benefits Review Program (CHBRP), minimal impact to premiums in state-funded programs AB 2050 Page 2 and the privately funded market. CHBRP analyzed a similar mandate as included in AB 2418 (Bonilla) of 2014. 2)Costs to monitor compliance are expected to be minor and absorbable for the Department of Managed Health Care (Managed Care Fund), and $35,000 over the first two years and $5,000 ongoing to the California Department of Insurance (Insurance Fund). COMMENTS: 1)Purpose. This bill is intended to encourage medication adherence and increase convenience to patients who may have multiple medications with different refill dates. 2)Background. Adherence to a medication regimen is generally defined as the extent to which patients take medications as prescribed by their health care providers. Prescription drugs are important for controlling chronic conditions, but many patients do not take medications as prescribed. There is some, albeit minor, evidence that medication synchronization can improve adherence to medication regimens. Beginning in 2014, Medicare Part D (prescription durg) plans were required to cover "short refills" in order to make it easier to have prescription medications synchronized, or refilled all at the same time. 3)Support. This bill is sponsored by the California Pharmacists Association and has no opposition. The National Association of Chain Drugs Stores seek an amendment to clarify pharmacies will still receive a dispensing fee when short filled medications are used. AB 2050 Page 3 4)Prior Legislation. AB 2418 (Bonilla) of 2014 required health plan contracts and health insurance policies to allow for the synchronization of prescription refills and permit refill of topical ophthalmic medications at 70% of the predicted days of use. It also required plans and insurers to apply a prorated daily cost-sharing rate to the refills of prescriptions that are dispensed by a participating pharmacy for purposes of synchronization. AB 2418 was vetoed by Governor Brown, who stated the bill lacked explicit patient consent before changes are made to refills and it did not address supportive elements that have made synchronization programs anecdotally successful. AB 2050 does not appear to address the veto message, but does offer more flexibility to plans to design synchronization procedures than AB 2418. Analysis Prepared by:Lisa Murawski / APPR. / (916) 319-2081