BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 407


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          Date of Hearing:   June 23, 2015


                            ASSEMBLY COMMITTEE ON HEALTH


                                  Rob Bonta, Chair


          SB  
          407 (Morrell) - As Amended June 17, 2015


          SENATE VOTE:  36-0

          SUBJECT:  Comprehensive Perinatal Services Program:  licensed  
          midwives.

          SUMMARY:  Expands the definition of a comprehensive perinatal  
          provider, as used in the Comprehensive Perinatal Services  
          Program (CPSP) for the purposes of reimbursement for Medi-Cal  
          services, to include a licensed midwife, and authorizes a health  
          care provider to employ or contract with a licensed midwife, as  
          specified.  Clarifies that this bill is not intended to expand  
          or revise the scope of practice of licensed midwives.



          EXISTING LAW:   



          1)Establishes the Medi-Cal Program under the direction of the  
            Department of Health Care Services (DHCS) to provide  
            qualifying individuals health care and a uniform schedule of  
            benefits, including comprehensive perinatal services.

          2)Requires midwifery services provided by a licensed midwife to  
            be covered under the Medi-Cal program, to the extent that  








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            federal financial participation is available.



          3)Establishes the CPSP under the direction of the Department of  
            Public Health (DPH).



          4)For the purposes of reimbursement for Medi-Cal services,  
            defines a comprehensive perinatal provider as any general  
            practice physician, family practice physician,  
            obstetrician-gynecologist, pediatrician, certified nurse  
            midwife (CNM), a physician group, as specified, or any  
            preferred provider organization or clinic enrolled in the  
            Medi-Cal program and certified pursuant to the standards of  
            existing law.



          5)Requires comprehensive perinatal providers to schedule visits  
            with appropriate providers and ensure the provision of  
            specified services.



          6)Authorizes a health care provider to employ or contract with  
            specified medical practitioners for the purpose of providing  
            comprehensive perinatal services, including physicians, CNMs,  
            nurses, nurse practitioners, physician assistants, social  
            workers, health and childbirth educators, and registered  
            dietiticians.



          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, one-time costs, less than $50,000, to revise existing  
          regulations and develop a state plan amendment to allow licensed  
          midwives to provide services in the CPSP, under Medi-Cal  








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          (General Fund (GF) and federal funds).



          No significant impact to the utilization of services in Medi-Cal  
          managed care (MCMC) is anticipated.  Under current law and  
          practice, the services that are authorized under the CPSP are  
          required benefits for Medi-Cal managed care beneficiaries.   
          Because those beneficiaries already have access to those  
          services through managed care, it is not likely that adding an  
          additional authorized provider will increase the utilization of  
          those services.  (For example, if a licensed midwife who is  
          seeing a pregnant woman in MCMC wished to order a covered  
          service, that midwife could simply work with another eligible  
          practitioner to order the services.)



          Unknown potential increase in costs to provide services in  
          fee-for-service (FFS) Medi-Cal (local funds and federal funds).   
          Under current practice, Medi-Cal beneficiaries in FFS can  
          receive CPSP services from their healthcare provider.  In FFS,  
          those costs are paid for with local funds and federal matching  
          funds.  The state does not provide GF support for those costs.   
          It is possible that there could be an increase in the  
          utilization of services under this bill, to the extent that  
          Medi-Cal beneficiaries are being provided care by a licensed  
          midwife and it is not easy for that provider to get another  
          authorized provider to order the specified services.  The extent  
          to which the fact that licensed midwives are not eligible to  
          provide the specified services is actually a barrier to women  
          getting those services in not known, so it is difficult to  
          estimate whether there would actually be an increase is service  
          utilization.  This bill does not create a new program or mandate  
          a higher level of service (the legal test for whether a state  
          mandate is reimbursable).  Therefore, it is not likely that the  
          state would be required to reimburse counties for any increased  
          costs under the bill, even if utilization of services does  
          increase.








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          COMMENTS:


          1)PURPOSE OF THIS BILL.  According to the author, studies have  
            shown that women who receive comprehensive childbirth,  
            pre-natal health, and breastfeeding education services during  
            pregnancy have healthier pregnancies and less complicated  
            births.  The author contends that expectant mothers of all  
            income levels should have options when deciding where and how  
            their child is brought into the world, however existing law  
            limits these choices for low-income individuals by the  
            exclusion of licensed midwives on the list of eligible  
            Medi-Cal providers for these services.  The author states that  
            increasing the number of comprehensive perinatal Medi-Cal  
            providers alleviates wait times and access issues within the  
            overall perinatal health delivery system, allowing women to  
            receive timely and personalized care.  The author also  
            contends that the authorization of licensed midwives as  
            comprehensive perinatal service providers will save the state  
            financial resources.  The author maintains births at home or  
            at birth centers with licensed midwives can save the state up  
            to 80% when compared to the cost of a birth in a hospital.   
            The author concludes that this bill will expand health care  
            access and choices to low-income, pregnant women, and drive  
            down the cost in the state health care system, while also  
            ensuring safe, quality care for pregnancy and childbirth.
          
          2)BACKGROUND.  



             a)   CPSP.  The CPSP, under the direction of DPH, provides a  
               wide range of services to pregnant Medi-Cal beneficiaries,  
               from conception through 60 days postpartum.  Beneficiaries  
               receive enhanced nutrition, psychosocial, and health  
               education services, in addition to standard obstetric  








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               services under the program.  The goals of the CPSP are to:  
               decrease the incidence of premature births; improve  
               pregnancy outcomes; give every baby a health start in life;  
               and, lower health care costs by preventing catastrophic  
               illness in infants and children.  According to DPH, there  
               are over 1,500 Medi-Cal providers approved to for the CPSP,  
               in both FFS and MCMC.  The CPSP is administered by Federal  
               Title V Maternal and Child Health block grant funds,  
               Federal Title XIX Medicaid funds, and the Maternal, Child,  
               and Adolescent Health program.
             b)   Midwifery.  Existing law defines the practice of  
               midwifery as the furthering or undertaking by any licensed  
               midwife to assist a woman in childbirth, as long as  
               progress of the birth meets criteria accepted as normal.   
               Licensed midwives are authorized to attend cases of normal  
               pregnancy and childbirth, as defined by existing law, and  
               provide prenatal, intrapartum, and postpartum care,  
               including family-planning care, for the mother, and  
               immediate care for the newborn.  Midwives are not  
               authorized to practice medicine or perform surgery, and are  
               not authorized to assist childbirths by any artificial,  
               forcible, or mechanical means.  Licensed midwives are  
               authorized to directly obtain supplies and devices, obtain  
               and administer drugs and diagnostic tests, order testing,  
               and receive reports that are necessary to the practice of  
               midwifery and consistent with his or her scope of practice.  
                As of December 31, 2014, there were 332 licensed midwives  
               in California.



               CNMs are a different designation of the midwifery  
               profession, licensed by the California Board of Registered  
               Nursing.  CNMs are registered nurses who acquired  
               additional training in the field of obstetrics and are  
               certified by the American College of Nurse Midwives.  These  
               professionals commonly work in hospitals and birthing  
               centers that are licensed by the state.  CNMs have an  
               independent scope of practice and work in collaboration and  








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               consultation with physicians, depending on the medical  
               needs of the individual woman or infant and the practice  
               setting.  Existing law requires nurse-midwifery care to be  
               performed under the supervision of a licensed physician and  
               surgeon, but supervision does not require physical presence  
               of the physician.  All complications are referred to a  
               physician immediately and CNMs provide emergency care until  
               physician assistance can be obtained.  As of March 1, 2015,  
               there were 1,136 CNMs in California.



          3)SUPPORT.  The California Association of Midwives, the sponsor  
            of this bill, states there is an increasing demand for  
            prenatal care with midwives in birth centers, and that this  
            bill will allow more California mothers to receive care in  
            safe, specialized settings.  The sponsor contends many rural  
            and medically underserved communities have no health care  
            providers who accept CPSP, and licensed midwives are ready to  
            fill this gap.

            Supporters of this bill state allowing licensed midwives to  
            offer comprehensive perinatal services lowers state health  
            care costs, and makes quality prenatal health care possible  
            for a larger portion of the state's low-income pregnant women  
            and their infants.  Supporters also contend that by increasing  
            the number of maternity care providers who accept Medi-Cal,  
            this bill will help rural communities, where families on  
            Medi-Cal have limited options for maternity care.  Supporters  
            state this bill will make it easier for women to receive  
            quality prenatal care early in their pregnancy, resulting in  
            better health outcomes for themselves and their babies, at a  
            lower cost to state taxpayers.


          4)OPPOSITION.  The American Congress of Obstetricians and  
            Gynecologists, District IX (California) is opposed unless  
            amended to a prior version of this bill, stating that licensed  
            midwives do not have the qualifications to be a lead CPSP;  








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            however the organization has no opposition to adding licensed  
            midwives as a provider of comprehensive perinatal services.   
            The opposition writes it would remove its opposition if the  
            language only added licensed midwives as a provider of  
            services in subsection (e) of this bill's provisions, and  
            deleted the right to lead from subsection (a).


          5)RELATED LEGISLATION.  


          
             a)   AB 1306 (Burke) removes the physician supervision  
               requirement for CNMs allowing them to manage a full range  
               of primary health services, perform peripartum care,  
               provide emergency care when a physician is not present and  
               perform and repair episiotomies in all practice settings.   
               AB 1306 is currently pending referral at the Senate Desk.
             
             b)   SB 408 (Morrell) establishes minimum training  
               requirements and duties that may be performed by a midwife  
               assistant.  SB 408 is currently in the Assembly Business  
               and Professions Committee.



          6)PREVIOUS LEGISLATION.  

             a)   AB 1308 (Bonilla), Chapter 665, Statutes of 2013,  
               authorizes a midwife to directly obtain supplies and  
               devices, obtain and administer drugs and diagnostic tests,  
               order testing and receive reports that are necessary to  
               his/her practice of midwifery and consistent with his/her  
               scope of practice; expands the disclosures required to be  
               made by a midwife to a prospective client to include the  
               specific procedures that warrant consultation with a  
               physician and surgeon; and, makes other correcting and  
               conforming changes.









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             b)   SB 614 (Figueroa), Chapter 614, Statutes of 2005,  
               expands the scope of practice for CNMs to include  
               furnishing or ordering Schedule II controlled substances  
               outside a hospital, as specified.


             
          7)DOUBLE REFFERAL.  This bill has been doubled referred.  Upon  
            successful passage of this Committee, this bill will be  
            referred to the Assembly Business and Professions Committee.
          
          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Association of Midwives (sponsor)


          Association of California Healthcare Districts


          California Black Health Network
          California Families for Access to Midwives
          Capital OB/GYN, Inc. (prior version)
          Central California Alliance for Health (prior version)
          Monterey County Board of Supervisors (prior version)
          Planned Parenthood Affiliates of California
          Santa Cruz County
          WellSpace Health (prior version)
          Two individuals




          Opposition








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          American Congress of Obstetricians and Gynecologists (prior  
          version)




          Analysis Prepared by:An-Chi Tsou / HEALTH / (916)  
          319-2097