BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 30, 2015


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                Susan Bonilla, Chair


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


          SENATE VOTE:  36-0


          NOTE: This bill is double-referred, having been previously heard  
          by the Assembly Health Committee on June 23, 2015, and approved  
          by a 17-0 vote. 


          SUBJECT:  Comprehensive Perinatal Services Program: licensed  
          midwives.


          SUMMARY:  Authorizes licensed midwives to provide services under  
          the Comprehensive Perinatal Services Program.  


          EXISTING LAW:   


          1)Establishes the Licensed Midwifery Practice Act of 1993 (Act),  
            which provides for the licensure of midwives by the Medical  
            Board of California (MBC).  (Business and Professions Code  
            (BPC) Section 2505 et seq.)


          2)Provides that the license to practice midwifery authorizes the  
            holder to attend cases of normal pregnancy and childbirth and  








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            to provide prenatal, intrapartum, and postpartum care,  
            including family-planning care, for the mother, and immediate  
            care for the newborn.  (BPC Section 2507(a))
          3)Defines the practice of midwifery as the furthering or  
            undertaking by any licensed midwife to assist a woman in  
            childbirth as long as progress meets criteria accepted as  
            normal, as specified.  (BPC Section 2507(b))


          4)Establishes the Medi-Cal program, which is administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income individuals receive health care services,  
            including comprehensive perinatal services. Comprehensive  
            perinatal services are a Medi-Cal benefit, as provided through  
            an agreement with a CPSP designated health care provider  
            meeting the standards developed by the State Department of  
            Public Health (DPH), and subject to utilization controls.   
            (Welfare and Institutions Code (WIC) Section 14000 et seq.,  
            14132(u))


          5)Requires, to the extent that federal financial participation  
            is available, and, subject to utilization controls, that  
            midwifery services provided by a licensed midwife are covered  
            under the Medi-Cal program.  (WIC Section 14132.39) 


          6)Establishes the CPSP, administered by DPH, to maintain, to the  
            extent resources are available, a permanent, statewide  
            community-based comprehensive perinatal system to provide care  
            and services to low-income pregnant women and their infants  
            who are considered underserved in terms of comprehensive  
            perinatal care. 


          7)Defines, for purposes of the CPSP, a "comprehensive perinatal  
            provider" to mean any general practice physician, family  
            practice physician, obstetrician-gynecologist, pediatrician,  
            certified nurse midwife, a group, any of whose members is one  








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            of the above-named physicians, or any preferred provider  
            organization or clinic enrolled in the Medi-Cal program and  
            CPSP certified. 


          8)Authorizes, for the purpose of providing comprehensive  
            perinatal services, a health care provider to employ or  
            contract specified practitioners, including physicians,  
            certified nurse midwives, nurses, nurse practitioners,  
            physician assistants, social workers, health and childbirth  
            educations and registered dieticians.


          THIS BILL: 


          9)Expands the definition of "comprehensive perinatal provider"  
            as used in the CPSP to include a licensed midwife.  


          10)Authorizes a health care provider to employ or contract with  
            licensed midwives for the purpose of providing comprehensive  
            perinatal services in the CPSP. 

          11)Provides that its provisions shall not be construed to revise  
            or expand the scope of practice of licensed midwives, as  
            specified.  
           
          12)Requires the Department of Health Care Services to commence,  
            no later than March 1, 2016, the revision of existing  
            regulations, in accordance with the Administrative Procedure  
            Act, as it determines necessary for the implementation of this  
            bill.

          13)Makes conforming changes. 


          FISCAL EFFECT:  According to the Senate Appropriations Committee  
          Analysis dated May 11, 2015:








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           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 Comprehensive  
            Perinatal Services Program, under Medi-Cal (General Fund and  
            federal funds).
           No significant impact to the utilization of services in the  
            Medi-Cal managed care program is anticipated. Under current  
            law and practice, the services that are authorized under the  
            Comprehensive Perinatal Services Program 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 increased the utilization of those  
            services. (For example, if a licensed midwife who is seeing a  
            pregnant woman in Medi-Cal managed care 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 the  
            fee-for-service Medi-Cal system (local funds and federal  
            funds). Under current practice, Medi-Cal beneficiaries in  
            fee-for-service can receive Comprehensive Perinatal Services  
            Program services from their health care provider. In the  
            fee-for-service system, those costs are paid for with local  
            funds and federal matching funds. The state does not provide  
            General Fund 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. The bill  
            does not create a new program or mandate a higher level of  








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            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.


          COMMENTS:  


          Purpose.  This bill is sponsored by the  California Association  
          of Midwives  .  According to the author, "Licensed midwives  
          provide comprehensive childbirth, prenatal health, and  
          breastfeeding education to their clients.  Studies have shown  
          that women who receive these services during pregnancy have  
          healthier pregnancies and less complicated births.  [This bill]  
          expands health care access by adding licensed midwives to the  
          list of Medi-Cal eligible comprehensive perinatal services  
          providers.  Expectant mothers of all income levels should have  
          options when it comes to deciding where and how they bring their  
          children into the world.  The current non-inclusion of licensed  
          midwives?.limits these choices for low-income individuals.  This  
          bill would expand the choices available to low-income, pregnant  
          women. 



          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.  Authorizing licensed  
          midwives as Medi-Cal providers of comprehensive perinatal  
          services will help all low-income women, even if they do not  
          choose a licensed midwife as their provider.  Lastly,  
          authorizing licensed midwives as comprehensive perinatal  
          services providers will save the state resources.  A home birth  
          or "birth center" birth with a licensed midwife can save the  
          state up to 80% when compared to the cost of a hospital birth.   
          Increasing access to licensed midwives drives down the cost in  








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          the state health care system while also ensuring safe, quality  
          care for pregnancy and childbirth."  
          Comprehensive Perinatal Services Program (CPSP).  According to  
          the DPH, the CPSP provides a wide range of culturally competent  
          services to Medi-Cal pregnant women, from conception through 60  
          days postpartum.  In addition to standard obstetric services,  
          women receive enhanced services in the areas of nutrition,  
          psychosocial and health education.  The Legislature enacted CPSP  
          in 1984 in response to findings from the OB Access Project,  
          which found that a comprehensive approach reduced both low birth  
          weight rates and health care costs in women and infants.  CPSP  
          became a Medi-Cal benefit in 1987.  Medi-Cal providers who  
          provide services to pregnant women may apply to become a CPSP  
          provider.  Medi-Cal Managed Health Care Plans are required to  
          provide access to CPSP-comparable services for pregnant Medi-Cal  
          eligible recipients.  The goals of the CPSP are to decrease  
          perinatal, maternal and infant mortality and morbidity and  
          support methods of providing comprehensive prenatal care that  
          prevent prematurity and the incidence of low birth weight  
          infants.  According to DPH, being a CPSP provider leads to  
          better patient outcomes and offers higher reimbursement because  
          it covers support services that Medi-Cal does not cover, and  
          more staffing flexibility.  


          Under CPSP, the provider is required to ensure the provision of  
          the following services either through the provider's own service  
          or through subcontracts or referrals to other providers: 1) a  
          psychosocial assessment and when appropriate, referrals to  
          counseling; 2) nutrition assessments and when appropriate,  
          referral to counseling on food supplement programs, vitamins,  
          and breast-feeding; and 3) health, childbirth, and parenting  
          education.  For example, some of the reimbursable services  
          include: early entry into care, vitamins, case coordination, a  
          10th antepartum visit, and support services. 


          Currently, the following health care practitioners can become a  
          CPSP provider if they have an active National Provider  








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          Identifier Number and are an active Medi-Cal provider in good  
          standing with Medi-Cal and their licensing board: 1) physicians  
          and surgeons, including general practitioners, family practice  
          physicians, pediatricians, or obstetrician-gynecologists; 2)  
          Certified Nurse Midwives (CNMs); 3) physician medical groups; 4)  
          clinics; and 5) preferred provider organizations.  All CPSP  
          providers and the following CPSP practitioners may deliver CPSP  
          services under the supervision of a physician and surgeon and as  
          permitted by the scope of practice, if licensed: 1) registered  
          nurses; 2) nurse practitioners; 3) physician assistants; 4)  
          social workers; 5) health and childbirth educators; and 7)  
          registered dieticians.     


          According to the DPH, over 1,500 Medi-Cal providers are approved  
          as CPSP providers, in both the fee-for-service and managed care  
          systems.  Local health department staff offer technical  
          assistance and consultation to potential and approved providers  
          in the implementation of CPSP program standards.  The Maternal,  
          Child & Adolescent Health Program develops standards and  
          policies; provides technical assistance and consultation to the  
          local health perinatal services coordinators; and, maintains an  
          ongoing training program for CPSP practitioners.


          Licensing Midwives.  A "licensed midwife" is an individual who  
          has been issued a license to practice midwifery by the MBC.  The  
          practice of midwifery authorizes the licensee to attend cases of  
          normal pregnancy and childbirth, and to provide prenatal,  
          intrapartum, and postpartum care, including family-planning  
          care, for the mother, and immediate care for the newborn without  
          physician supervision. AB 1308 (Bonilla), Chapter 665, Statutes  
          of 2013, made numerous changes to the Act, and removed the  
          statutory requirement for a licensed midwife to practice under  
          the supervision of a physician and surgeon and instead specified  
          that a midwife may assist in normal pregnancy and birth.  A  
          licensed midwife is also authorized to directly obtain supplies  
          and devices, obtain and administer drugs and diagnostic tests,  
          order testing, and receive reports that are necessary to his or  








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          her practice of midwifery and consistent with his or her scope  
          of practice. 


          Licensed midwives, who have achieved the required educational  
          and clinical experience in midwifery (including completing a  
          three-year postsecondary education program in an accredited  
          midwifery school approved by the MBC) or met the challenge  
          requirements (obtaining credit by examination for previous  
          education and clinical experience -this option is no longer  
          available as of January 1, 2015), must pass the North American  
          Registry of Midwives' (NARM) comprehensive examination.  After  
          successful completion of this examination, prospective  
          applicants are designated as a "certified professional midwife"  
          and are eligible to submit an application for California  
          midwifery licensure.


          The profession of midwifery also has another designation, that  
          of "certified nurse-midwife" (CNM).  CNMs are licensed by the  
          Board of Registered Nursing and are registered nurses who  
          acquired additional training in the field of obstetrics and are  
          certified by the American College of Nurse Midwives (ACNM).   
          CNMs usually work in hospitals and birthing centers that also  
          are licensed by the state.  The nurse-midwifery certificate  
          authorizes the CNM to provide prenatal, intrapartum, and  
          postpartum care, including interconception care and family  
          planning, under physician supervision - however, physical  
          presence is not required. The nurse-midwifery certificate also  
          authorizes the CNM to attend cases of normal childbirth on his  
          or her own responsibility, as well as immediate care for the  
          newborn. 


          Prior Related Legislation.  AB 1308 (Bonilla) Chapter 665,  
          Statutes of 2013, removed the statutory requirement for a  
          licensed midwife to practice under the supervision of a  
          physician and surgeon who has current practice or training in  
          obstetrics, and instead specified that a midwife may assist in  








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          normal pregnancy and birth, and for pregnancies that are not  
          considered normal, the midwife must refer the client to a  
          physician and surgeon for an examination.  AB 1308 also  
          authorized 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 or her practice of  
          midwifery and consistent with his or her scope of practice, and  
          expanded 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.


          SB 1638 (Figueroa), Chapter 536, Statutes of 2006,required the  
          MBC to create and appoint the Midwifery Advisory Council, and  
          required licensed midwives to make annual reports to the Office  
          of Statewide Health Planning and Development containing  
          specified information regarding the births the midwife assisted  
          in delivering during the prior year.


          SB 1950 (Figueroa), Chapter 1085, Statutes of 2002, required the  
          MBC to adopt regulations by July 1, 2003, defining the  
          appropriate standard of care and level of supervision required  
          for the practice of midwifery.


          ARGUMENTS IN SUPPORT: 


          According to the  Association of California Health Care  
          Districts  , "Studies have shown that women who receive care from  
          those practicing midwifery have healthier pregnancies and less  
          complicated births.  Allowing licensed midwives to offer  
          comprehensive perinatal services makes quality prenatal  
          healthcare possible for a larger portion of the state's  
          low-income pregnant women and their infants?This approach to  
          expanding Medi-Cal eligible service providers will also aid in  
          decreasing health care costs.  Offering the option for pregnant  
          women to receive care from a midwife in a home birth or birth  








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          center environment will save the state the comparatively high  
          hospital birth costs.  Increasing access to quality licensed  
          midwives is beneficial not only for families who choose a  
          midwife, but also for the state health care system as a whole."


          According to the  Santa Cruz County Board of Supervisors  ,"[This  
          bill] will increase the number of maternity care providers who  
          accept Medi-Cal.  This is especially important in rural  
          communities where families on Medi-Cal have limited options for  
          maternity care.  Increasing CPSP providers 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 taxpayers."


          ARGUMENTS IN OPPOSITION:


          According to the  American Congress of Obstetricians and  
          Gynecologists, District IX  , "We do not believe the Licensed  
          Midwives have the qualifications to be the lead CPSP  
          Providers?.Education and training of Licensed Midwives has been  
          inconsistent through the years and until AB 1308, that  
          inconsistency included apprentice trained midwives.  The  
          apprentice trained already licensed midwives were grandmothered  
          in.  Their backgrounds are very different from Certified Nurse  
          Midwives.  In the future that may change but historically the  
          training and education has varied widely.  If the problem they  
          are trying to address is to be able to have licensed LM-owned  
          birth centers, we do believe their problem could be remedied by  
          adding them as practitioners?.Under Alternative Birth Center  
          licensing law?, all that is required is that they are a provider  
          of comprehensive services.?We have no opposition to adding  
          Licensed Midwives as a provider of services?versus the  
          coordinator of all levels of services as a CPSP Provider?." 


          POLICY ISSUE 








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          AB 1308 (Bonilla), Chapter 665, Statutes of 2013, made numerous  
          changes to the Act, and removed the statutory requirement for a  
          licensed midwife to practice under the supervision of a  
          physician and surgeon who has current practice or training in  
          obstetrics, and instead specified that a midwife may assist in  
          normal pregnancy and birth.  For pregnancies that are not  
          considered normal, the midwife must refer the client to a  
          physician and surgeon for an examination.  Under existing law, a  
          pregnancy is not normal if there is: 1) any "preexisting  
          maternal disease or condition likely to affect the pregnancy";  
          or 2) if there is "significant disease arising from the  
          pregnancy."  AB 1308 directed the MBC to adopt regulations  
          further specifying those conditions, and those regulations are  
          still pending.  Because these regulations have not yet been  
          finalized, it may be beneficial to delay the operative date of  
          the provision that would authorize a licensed midwife to serve  
          as a CPSP provider, rather than a practitioner, until those  
          regulations have been adopted.  


          AMENDMENTS  


          On page 2, line 8, strike the following:  licensed midwife  


          On page 4, add subdivision (l) as follows:  (l) Notwithstanding  
          subdivision (a), on the effective date of the regulations  
          adopted by the Medical Board of California pursuant to Section  
          2507 of the Business and Professions Code, a licensed midwife  
          shall be eligible to serve as a comprehensive perinatal  
          provider. 


           REGISTERED SUPPORT:










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          California Association of Midwives (sponsor)
          Association of California Healthcare Districts 
          California Black Health Network 
          Central California Alliance for Health 
          California Nurse-Midwives Association
          Monterey County Board of Supervisors
          Santa Cruz County Board of Supervisors
          Wellspace Health   
          Associate Professor of Department of Obstetrics & Gynecology, UC  
          Davis School of Medicine 
          President, Capitol OB/GYN, Inc.

          REGISTERED OPPOSITION:


          American Congress of Obstetricians and Gynecologists, District  
          IX


          Analysis Prepared by:Eunie Linden / B. & P. / (916)  
          319-3301