BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2439 (Nazarian) - HIV testing
          
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          |Version: August 1, 2016         |Policy Vote: HEALTH 7 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 11, 2016   |Consultant: Brendan McCarthy    |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 11, 2016






          Bill  
          Summary:  AB 2439 would create a pilot project to assess the  
          effectiveness of routinely offering HIV tests in the emergency  
          department of a hospital.


          Fiscal  
          Impact:  
           One-time costs of $305,000 in 2016-17 and $560,000 in 2017-18  
            for the Department of Public Health to oversee the pilot  
            project (General Fund).

           By requiring hospitals to offer additional HIV testing to  
            patients, the bill will increase the number of tests provided  







          AB 2439 (Nazarian)                                     Page 1 of  
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            and the number of previously undiagnosed individuals who will  
            be diagnosed with HIV, typically leading to treatment. The  
            number of additional tests provided and the number of  
            previously undiagnosed cases of HIV discovered through those  
            tests is subject to uncertainty. Based on information  
            developed by the Office of Statewide Planning and Development,  
            there are about 14 million emergency department patient  
            encounters per year. If 10% of the encounters in participating  
            hospitals lead to an HIV test and the population accepting the  
            test has roughly the same rate of undiagnosed HIV as the  
            overall state population, there would be about 10-20 newly  
            diagnosed cases of HIV identified per year. This would result  
            in the following state costs:

               o      About $150,000 per year for additional HIV testing  
                 (including follow up testing for positive test results)  
                 by the Medi-Cal program (General Fund and federal funds).

               o      About $200,000 per year to provide medical care  
                 Medi-Cal enrollees newly diagnosed with HIV (General Fund  
                 and federal funds).

               o      About $50,000 per year to provide medical care to  
                 new Aids Drug Assistance Program enrollees (federal funds  
                 and drug rebate funds).

           Unknown long-term cost savings to Medi-Cal due to earlier  
            medical intervention for HIV-positive Medi-Cal enrollees. To  
            the extent that HIV-positive Medi-Cal enrollees are diagnosed  
            earlier and begin treatment earlier, it is likely that the  
            long-term health status of those individuals will improve and  
            some of the health effects of HIV will be delayed or avoided.  
            There are indications that untreated HIV causes long-term  
            health impacts such as elevated risk of diabetes and heart  
            disease, even before the effects of compromised immune system  
            function associated with HIV infection become evident. Earlier  
            diagnosis and treatment for HIV-positive individuals may to  
            reduce long-term Medi-Cal expenditures for those individuals.  
            However, to some unknown extent the improvement in health  
            status and reduction in health care needs will be offset by  
            longer lifespans, potentially offsetting cost savings.

           Unknown cost savings due to reduced HIV infections in the  
            state, including amongst Medi-Cal beneficiaries. There are  








          AB 2439 (Nazarian)                                     Page 2 of  
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            academic findings that diagnosis of HIV significantly reduces  
            the likelihood that an HIV positive individual will infect  
            others. This is due both to a reduction in risky behavior by  
            those aware of their HIV positive status and reductions in  
            viral loads in the blood due to antiretroviral treatments. To  
            the extent that the bill results in new diagnoses of HIV and  
            that newly diagnosed individuals are able to access  
            appropriate medical care, the bill is likely to prevent future  
            HIV infections.


          Author  
          Amendments:  Authorize the Department to select fewer than four  
          hospitals, delay the reporting requirements, and make technical  
          changes.


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