BILL ANALYSIS Ó SB 407 Page 1 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 SB 407 Page 2 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 SB 407 Page 3 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: SB 407 Page 4 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 SB 407 Page 5 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 SB 407 Page 6 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 SB 407 Page 7 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 SB 407 Page 8 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 SB 407 Page 9 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 SB 407 Page 10 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 SB 407 Page 11 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 midwifeOn 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: SB 407 Page 12 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