BILL ANALYSIS Ó AB 2696 Page 1 Date of Hearing: April 12, 2016 ASSEMBLY COMMITTEE ON HEALTH Jim Wood, Chair AB 2696 (Beth Gaines) - As Amended March 18, 2016 SUBJECT: Diabetes prevention and management SUMMARY: Requires the Department of Public Health (DPH) to submit a report to the Legislature on or before January 1, 2018, that includes a summary and compilation of recommendations on diabetes prevention and management. Specifically, this bill: 1)Requires the report to include a summary and compilation of recommendations on diabetes prevention and management, if any, from all of the following sources: a) The University of California; b) The federal Centers for Disease Control and Prevention (CDC); c) The California Wellness Plan; d) Other statewide diabetes stakeholder groups; and, AB 2696 Page 2 e) Other entities identified by DPH as having relevant findings and recommendations. 2)Requires DPH to include in the report any recommendations from the institutions listed in 1) above on all of the following items: a) Evidence-based strategies to prevent or manage diabetes; b) An analysis of the financial impact diabetes and its complications have on the state; and, c) Policy recommendations for the prevention and management of diabetes. 3)Requires DPH to include in the report a description of the existing level of coordination between state departments with regard to programmatic activities and the provision of information to the public regarding managing and preventing diabetes and its complications. 4)Requires DPH, commencing July 1, 2017, to annually post all of the following information on its Internet Website: a) A summary of the amount and source of any funding directed to DPH for programs and activities aimed at preventing or managing diabetes; and, b) A summary of the expenditures by DPH on programs and activities aimed at preventing or managing diabetes. AB 2696 Page 3 5)Sunsets the reporting requirement on January 1, 2024. 6)Makes various findings and declarations regarding diabetes, including that there is no cure for any type of diabetes; however, there is evidence that diabetes can be prevented or delayed in onset through lifestyle changes and medical intervention. EXISTING LAW establishes DPH to protect and improve the health of communities through education, promotion of healthy lifestyles, and research for disease and injury prevention. FISCAL EFFECT: This bill has not been analyzed by a fiscal committee. COMMENTS: 1)PURPOSE OF THIS BILL. According to the author, diabetes has reached epidemic levels in California. The author states as of 2012, about one in seven adult Californians have diabetes and many more will be diagnosed in the near future and within 10 years, it will be one in three adults. The author contends that, today, the State of California has no action plan in place to mitigate the escalating fiscal impact of diabetes and this bill would require DPH to create and submit to the State of California a "diabetes action plan." The author concludes the goal of the plan is to provide policy guidance addressing the escalating fiscal impact of diabetes treatment and care. 2)BACKGROUND. AB 2696 Page 4 a) Diabetes. Diabetes is a chronic medical condition marked by high levels of blood glucose (a form of sugar) resulting from defects in insulin production, insulin action, or both. Type 1 diabetes, previously known as juvenile diabetes, is an autoimmune disease in which the body does not produce the hormone insulin. There is no known way to prevent type 1 diabetes. Type 2 diabetes (previously called non-insulin-dependent diabetes or adult-onset diabetes), accounts for about 90% to 95% of all diagnosed cases of diabetes. It usually begins as insulin resistance, a disorder in which the cells do not use insulin properly. As the need for insulin rises, the pancreas gradually loses its ability to produce it. Gestational diabetes occurs in pregnant women who have never had diabetes before, but have higher than normal blood glucose levels during pregnancy. Immediately after pregnancy, about 5% to 10% of women with gestational diabetes are found to have diabetes, usually type 2. Women who have had gestational diabetes have a 35% to 60% chance of developing diabetes in the next 10 to 20 years. Prediabetes is a condition in which individuals have blood glucose levels higher than normal but not high enough to be classified as diabetes. People with prediabetes have an increased risk of developing type 2 diabetes, heart disease, and stroke. Without intervention, about one out of four people with prediabetes will develop diabetes within three to five years. Ethnic minorities and those who are poor or disadvantaged have especially high rates of diabetes. In 2010, one in seven African American (14.3%), one in nine American Indian/Alaskan Natives/Native Hawaiian/Other Pacific Islander (11.6 %), one in 10 Latino (10.9%), one in 11 Asian American (7.7%), and one in 14 white (7.0%) adults had diagnosed diabetes. According to DPH, diabetes costs in California exceed $24 billion each year. Total health care and related costs for AB 2696 Page 5 the treatment of diabetes in California are about $24.5 billion. Direct medical costs (e.g., hospitalizations, medical care, treatment, supplies) account for about $18.7 billion, the other $5.8 billion include indirect costs such as disability payments, time lost from work, and premature death. The average annual treatment cost per case for diagnosed diabetes in the U.S. was nearly $10,000 in 2007. Increased risk of heart disease, stroke, and kidney damage (and the need for dialysis as a result) are the most deadly effects of diabetes. Uncontrolled high blood sugars may also affect the eyes and cause blindness. Diabetes frequently affects circulation, and a simple cut on the foot can lead to an amputation due to infection. Diabetics tend to experience longer hospitalizations and mortality rates. California has an estimated 3.9 million adults with diabetes (2010), and the numbers are rising rapidly. b) California Heart Disease, Stroke, and Diabetes Prevention. In July of 2013, DPH received a five-year grant from the CDC, referenced in California as Prevention First, in the amount of $2.4 million per year. In 2014, DPH applied for and was awarded supplemental funding for Prevention First to conduct activities aimed at increasing diabetes self-management programs and increasing the use of lifestyle intervention programs. The amount of the supplemental grant is $1.35 million per year, with 75% ($1 million) awarded to four local health departments - Alameda, Madera, Monterey, and Sacramento. The Prevention First grant (including supplemental) ends in 2018. It is not known if CDC will continue this funding past 2018. In September 2014, DPH was awarded a four-year grant from the CDC, entitled State and Local Public Health Actions to Prevent Obesity, Diabetes, Heart Disease, and Stroke. The total funding amount per year is $3.52 million with $3 AB 2696 Page 6 million being allocated to six local health departments - Fresno, Merced, San Joaquin, Shasta, Solano, and Tulare -- who conduct activities related to implementation of the National Diabetes Prevention Program. It is not known if CDC will continue this funding past 2018. c) The California Wellness Plan. In February 2014, DPH's Chronic Disease Prevention Branch published the California Wellness Plan (Plan), the result of a statewide process led by DPH to develop a roadmap for DPH and partners to promote health and eliminate preventable chronic disease in California. The plan aligns with the Let's Get Healthy California Taskforce priorities and includes 26 priorities and performance measures developed in 2012 that are based upon evidence-based strategies to prevent chronic disease and promote equity. The Plan contains short, intermediate, and long-term objectives with measurable effects on a variety of chronic diseases, of which diabetes is a major focus. The plan contains 15 objectives specific to diabetes, including objectives to increase utilization of diabetes prevention and self-management programs, as well as broad objectives to reduce the prevalence of obesity and diabetes among children and adults. DPH's chronic disease programs plan to collaborate with local and state partners, including the Office of Health Equity, engaged in diabetes prevention to implement the objectives. DPH intends to monitor the progress of Plan objectives and publish regular reports on outcomes. d) Progress updates and Plan revisions. According to DPH, the Chronic Disease Control Branch Chief ensures that, at a minimum, the Plan is reviewed in conjunction with partners every five years to assess the need for a new version. As funding permits and partners agree, a process to create a new version of the Plan will be developed and implemented, overseen by the Director of Coordination. The process will capture observations and recommendations based on lessons AB 2696 Page 7 learned from Plan implementation efforts and from which updated priorities and evidence-based strategies can be determined. The process will identify specific revisions, assign them to responsible parties and establish targets dates for completion. This review process will be consistent with the CDC and Evaluation Program guidelines. Triggers for reviewing the Plan sooner than the five year cycle include, but are not limited to: a) major changes to DPH authority; or, b) major changes in federal and/or state funding, guidance, or requirements. Any future versions of the Plan developed in conjunction with partners will also be available to the public on the DPH Website. DPH further states that a one-day statewide conference will be held on May 18, 2017, for partners and programs to report on progress or short term outcomes of goals of the plan. The meeting, entitled P21 2.0, will showcase the progress report on the Plan Objectives and Focus Areas shared at a February 2014 meeting that brought together experts and partners from multiple organizations and sector; discuss how chronic disease prevention efforts align and have contributed to Let's Get Healthy goals; and, highlight success and best practices. e) Diabetes Burden Report. In September 2014, DPH published the "Burden of Diabetes in California," a report funded by a grant from the CDC. The brief report seeks to describe the current burden of diabetes among adults in the state, and to describe some of the current diabetes prevention and control activities being implemented by DPH. The report also discusses a number of ongoing activities by DPH that support the primary prevention of diabetes through the promotion of healthy eating, increased physical activity, tobacco cessation, and the prevention and control of overweight and obesity. Secondary prevention activities focus on evidence-based strategies to prevent or delay the onset of complications among Californians diagnosed with type 2 diabetes. DPH is establishing a statewide network AB 2696 Page 8 of evidence-based lifestyle change programs that are designed to prevent the development of type 2 diabetes among people at highest risk and prevent or delay the onset of complications among people diagnosed with type 2 diabetes. This report addresses some of the required components of this bill including diabetes burden, cost of diabetes in the state and some comparison with other chronic diseases, such as obesity and high blood pressure. The report required by this bill could serve as a complement to this existing report. 3)PREVIOUS LEGISLATION. a) AB 572 (Beth Gaines) of 2015, would have required DPH to update the 2014 Plan to include specified items, and required DPH to report to the Legislature on or before January 1, 2018, and as specified, on the progress of the update. AB 572 died Senate Appropriations Committee. b) AB 270 (Nazarian) of 2015 would have required DPH to apply to the State Department of Motor Vehicles to sponsor a diabetes awareness, education, and research specialized license plate program. Would have established the Diabetes Awareness Fund, with revenues to be used by DPH to fund programs related to diabetes awareness and prevention. AB 270 died in the Senate Appropriations Committee. c) AB 1592 (Beth Gaines) of 2014 would have required DPH to complete and submit to the Legislature a Diabetes Burden Report by December 31, 2015 including, among other things, actionable items for consideration by the Legislature that will aid in attaining the goals set forth by DPH in the Plan for 2014. Would have required DPH to include in the report guidelines that will reduce the fiscal burden of AB 2696 Page 9 diabetes to the state. AB 1592 was vetoed by the Governor, stating that DPH had already submitted its Diabetes Burden Report to the CDC, as required, and is unable to withdraw the report to include additional information prescribed by the bill. d) SB 1316 (Cannella) of 2014 would have required the Department of Health Care Services, DPH, and the Board of Administration of the Public Employees' Retirement System to submit a report to the Legislature regarding their diabetes-related programs, and stated it was the intent of the Legislature to coordinate a response that assesses the quality of care and manages the costs paid for by state-financed health programs relating to diabetes. SB 1316 died in the Senate Rules Committee. REGISTERED SUPPORT / OPPOSITION: Support None on file. Opposition None on file. Analysis Prepared by:Lara Flynn / HEALTH / (916) 319-2097 AB 2696 Page 10