BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2439 (Nazarian) - HIV testing ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 1, 2016 |Policy Vote: HEALTH 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** 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 ? 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 ? 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. -- END --