BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 960    
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          |AUTHOR:        |Hernandez and Leno                             |
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          |VERSION:       |February 8, 2016                               |
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          |HEARING DATE:  |April 20, 2016 |               |               |
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          |CONSULTANT:    |Melanie Moreno                                 |
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           SUBJECT  :  Medi-Cal:  telehealth:  reproductive health care


         SUMMARY  :1)  Adds "reproductive health care" by store and forward provided  
          by a physician, nurse practitioner, certified nurse midwife,  
          licensed midwife, physician assistant, or registered nurse  
          operating within her scope of practice, to existing law that  
          prohibits face to face contact for teleophthalmology,  
          teledermatology and teledentisty from being required in the  
          Medi-Cal program. Requires Medi-Cal managed care plans to cover  
          reproductive health care, teleophthalmology, teledermatology,  
          and teledentistry. 
          
          Existing law:
          1)Provides for 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,  
            as specified. 

          2)Provides that, to the extent that federal financial  
            participation is available, face-to-face contact between a  
            health care provider and a patient is not required under the  
            Medi-Cal program for "teleophthalmology, teledermatology and  
            teledentistry by store and forward," as defined to mean the  
            asynchronous transmission of medical information to be  
            reviewed at a later time by a licensed physician or  
            optometrist, as specified, at a distant site.

          3)States legislative intent to recognize the practice of  
            telehealth as a legitimate means by which an individual may  
            receive health care services from a health care provider  
            without in-person contact with the health care provider.








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          4)Prohibits a health plan or health insurer from requiring  
            in-person contact between a health care provider and a patient  
            before payment is made for the covered services appropriately  
            provided through telehealth, subject to the terms and  
            conditions of the contract entered into between the enrollee  
            or subscriber and the health plan or the insured and health  
            insurer, and between the health plan or health insurer and its  
            participating providers or provider groups.

          5)Prohibits a health plan or health insurer from limiting the  
            type of setting where services are provided for the patient or  
            by the health care provider before payment is made for the  
            covered services appropriately provided through telehealth,  
            subject to the terms and conditions of the contract entered  
            into between the enrollee or subscriber and the health plan or  
            the insured and the health insurer, and between the health  
            plan or health insurer and its participating providers or  
            provider groups.

          6)Applies 4) and 5) above to health care and Medi-Cal managed  
            care plan contracts with the DHCS.

          7)Prohibits existing law from being interpreted to authorize a  
            health plan or health insurer to require the use of telehealth  
            when the health care provider has determined that it is not  
            appropriate.

          8)Establishes the Department of Managed Health Care (DMHC) to  
            regulate health plans and the California Department of  
            Insurance (CDI) to regulate health insurers, and other  
            insurance carriers and insurance agents.

          This bill:
          1)Adds "reproductive health care" by store and forward provided  
            by a physician, nurse practitioner, certified nurse midwife,  
            licensed midwife, physician assistant, or registered nurse  
            operating within her scope of practice, to existing law that  
            prohibits face to face contact for teleophthalmology,  
            teledermatology and teledentisty from being required in the  
            Medi-Cal program. Defines "reproductive health care" as the  
            general reproductive health care services described in  
            existing law related to FamilyPACT. 

          2)Requires Medi-Cal managed care plans to cover reproductive  
            health care, teleophthalmology, teledermatology, and  








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            teledentistry. 

          3)Makes, to the extent that federal financial participation is  
            available and any necessary federal approvals have been  
            obtained, for telephonic and electronic patient management  
            services provided by a physician, or a non-physician health  
            care provider acting within his or her scope of licensure, a  
            benefit under the Medi-Cal program, both in fee-for-service  
            and managed care delivery systems delivered by Medi-Cal  
            managed care plans. 

          4)Requires reimbursement for telephonic and electronic patient  
            management services to be based on the complexity of and time  
            expended in rendering those services.

          5)Prohibits 4) above from being construed to authorize a  
            Medi-Cal managed care plan to require the use of telephonic  
            and electronic patient management services when the physician  
            or non-physician health care provider has determined that  
            those services are not medically necessary. 

          6)Prohibits this bill from being construed to alter the scope of  
            practice of a health care provider or authorize the delivery  
            of health care services in a setting or in a manner than is  
            not otherwise authorized by law. 

          7)Requires all laws regarding the confidentiality of health  
            information and a patient's right of access to his or her  
            medical information to apply to telephonic and electronic  
            patient management services. 

          8)Specifies that this bill does not apply to a patient in the  
            custody of the Department of Corrections and Rehabilitation or  
            any other correctional facility. 

          9)Prohibits separate reimbursement of a physician or a  
            non-physician health care provider from being required for any  
            of the following: 

                  a)        A telephonic or electronic visit that is  
                    related to a service or procedure provided to an  
                    established patient within a reasonable period of time  
                    prior to the telephonic or electronic visit, as  
                    recognized by the Current Procedural Terminology (CPT)  
                    codes published by the American Medical Association  








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                    (AMA); 
                  b)        A telephonic or electronic visit that leads to  
                    a related service or procedure provided to an  
                    established patient within a reasonable period of  
                    time, or within an applicable postoperative period, as  
                    recognized by the CPT codes published by the AMA.; 
                  c)        A telephonic or electronic visit provided as  
                    part of a bundle of services for which reimbursement  
                    is provided for on a prepaid basis, including  
                    capitation, or which reimbursement is provided for  
                    using an episode-based payment methodology; and, 
                  d)        A telephonic or electronic visit that is not  
                    initiated by an established patient, by the parents or  
                    guardians of a minor who is an established patient, or  
                    by a person legally authorized to make health care  
                    decisions on behalf of an established patient.

          10)Prohibits anything in this bill from being construed to  
            prohibit a Medi-Cal managed care plan  from requiring  
            documentation reasonably relevant to a telephonic or  
            electronic visit, as recognized by the CPT codes published by  
            the AMA.

          11)Defines "telephonic and electronic patient management  
            service" as the use of electronic communication tools to  
            enable treating physicians and non-physician health care  
            providers to evaluate and manage established patients in a  
            manner that:

                  a)        Does not require an in-person visit with the  
                    physician or non-physician health care provider;  
                  b)        Is initiated by the established patient, the  
                    parents or guardians of a minor who is an established  
                    patient, or a person legally authorized to make health  
                    care decisions on behalf of an established patient.  
                    "Initiated by an established patient" does not include  
                    a visit for which a provider or a person employed by a  
                    provider contacts a patient to initiate a service;  
                    and, 
                  c)        Is recognized by the CPT codes published by  
                    the AMA.

           12)Permits DHCS to seek approval of any state plan amendments  
             necessary to implement this bill.









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           FISCAL  
          EFFECT  :  This bill has not been analyzed by a fiscal committee.

           COMMENTS  :
          1)Author's statement.  According to the author, this bill will  
            expand access to reproductive health care services through the  
            use of existing and innovative technology that connects  
            patients with their health care provider more efficiently and  
            cost effectively.  The use of telehealth is expanding, and is  
            a vital component of health care that increases access to  
            care, and lowers the cost of health care services.  Planned  
            Parenthood developed a mobile app to facilitate the testing  
            and treatment of sexually transmitted infections (STIs) and  
            urinary tract infections (UTIs), and the provision of hormonal  
            birth control, without requiring an office visit.  Using these  
            types of mobile, web-based technologies will increase access  
            to care in all communities -- rural, urban, and suburban  
            underserved areas.  However, Medi-Cal reimbursement for  
            telehealth services is limited to only a few fields of  
            medicine.  This bill will enable certain services that Planned  
            Parenthood provides to patients through health centers to also  
            be reimbursed when delivered through its mobile application.  
            At a time when we have increased insurance coverage for  
            millions of Californians, this bill ensures that low income  
            women seeking reproductive health care services, regardless of  
            location, can receive the care they need in the most efficient  
            way possible.  

          2)Impact of undiagnosed disease and unintended pregnancies.   
            About one in eight U.S. residents with HIV do not realize they  
            are infected, and they cause nearly one-third of HIV  
            transmissions, according to a CDC report released in June  
            2015.  With regard to bacterial STIs, the Department of Public  
            Health reported that California ranked first among all states  
            in 2014 for the total number of cases of chlamydia, gonorrhea,  
            and syphilis.  Additionally, disparities persist for STIs,  
            with the highest rates found among young people,  
            African-Americans, and gay and bisexual men.  However,  
            according to the federal Department of Health and Human  
            Services, because many cases of STIs go undiagnosed, the  
            reported cases of chlamydia, gonorrhea, and syphilis represent  
            only a fraction of the true burden of STIs.  Untreated STIs  
            can lead to serious long-term health consequences, especially  
            for adolescent girls and young women.  Finally, in California,  
            about half of all pregnancies are unintended.  Women with  








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            unintended pregnancies are less likely to receive prenatal  
            care, and health outcomes are worse for both mother and baby.  
            According to a 2015 study by the Guttmacher Institute, the  
            annual public cost of unintended pregnancies in California is  
            more than $1.75 billion. 
            
          3)Telehealth.  Existing law defines "telehealth" as the mode of  
            delivering health care services and public health via  
            information and communication technologies to facilitate the  
            diagnosis, consultation, treatment, education, care  
            management, and self-management of a patient's health care  
            while the patient is at the originating site and the health  
            care provider is at a distant site.  A 2014 report by the  
            California Health Benefits Review Program on AB 1771 (Perez of  
            2014),  found these services, especially in underserved areas,  
            could substitute for 60% of current, more costly face-to-face  
            visits, while improving access by increasing capacity for more  
            patient visits to occur.  

          4)Planned Parenthood Direct.  In June 2015, Planned Parenthood  
            Affiliates of California (PPAC) launched a mobile application  
            called Planned Parenthood Direct, which allows men and women  
            to order confidential STI testing kits through their mobile  
            phone and, if they test positive, receive treatment.  It had  
            been available in Minnesota and Washington since the 2014 and  
            allows people to talk to a Planned Parenthood provider online  
            and face to face through a secure video consultation system,  
            and then receive birth control or an STI test kit and  
            treatment, if necessary, in the mail.  According to Planned  
            Parenthood, these two apps build upon other resources that the  
            organization has introduced to the health care field to  
            increase access to reproductive health care services.   
            According to PPAC, Planned Parenthood Direct is only cash pay,  
            but they are working to accept insurance coverage.  Under this  
            scenario, the interface will verify a patient's insurance to  
            see if the service is covered, and if it is, whether or not a  
            co-pay applies before the service is provided. 

          5)CPT codes.  These codes are used to report episodes of patient  
            care initiated by an established patient or guardian of an  
            established patient.  If the telephone service ends with a  
            decision to see the patient within 24 hours or next available  
            urgent visit appointment, the code is not reported; rather the  
            encounter is considered part of the preservice work of the  
            subsequent evaluation and management service, procedure, and  








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            visit.  If the telephone call refers to an evaluation and  
            management service reported within the previous seven days or  
            within the postoperative period of the previously completed  
            procedure, then the service is not reported.  There are also  
            CPT codes for telephone services provided by a qualified  
            non-physician who may report telephone assessment and  
            management services with similar criteria as described above.  
            While CPT codes exist, there is no Medi-Cal reimbursement for  
            telephone and email consultation for reproductive services,  
            and reimbursement for store and forward telehealth services is  
            limited to only a few fields of medicine.  According to the  
            CHBRP analysis of AB 1771, with a few exceptions, the Centers  
            for Medicare and Medicaid Services (CMS) do not reimburse for  
            telephone (and email) communications, and most commercial  
            insurance carriers follow CMS reimbursement decisions.  

          6)Related legislation.  AB 2507 (Gordon) expands the definition  
            of telehealth to also include telephone, email and synchronous  
            text, and chat conferencing as billable telehealth modalities  
            and requires health plans and insurers to reimburse telehealth  
            services to the same extent as services provided through in  
            person. AB 2507 is set to be heard in the Assembly Health  
            Committee on April 19, 2016.

          7)Prior legislation. AB 1771 would have required health plans  
            and health insurers, with respect to plan contracts and  
            insurance policies issued, amended, or renewed on or after  
            January 1, 2016, to cover telephone visits provided by a  
            physician.  AB 1771 was held on suspense in the Senate  
            Appropriations Committee.
          
            AB 415 (Logue, Chapter 547, Statutes of 2011), among other  
            provisions, prohibits DHCS from requiring that a health care  
            provider document a barrier to an in-person visit prior to  
            paying for services provided via telehealth to a Medi-Cal  
            beneficiary.  Repeals the prohibition of paying for a service  
            provided by telephone or facsimile and would instead prohibit  
            DHCS from limiting the type of setting where services are  
            provided for the patient. Prohibits health plans and insurers  
            from requiring that in-person contact occur between a health  
            care provider and a patient before payment is made for the  
            services appropriately provided through telehealth, subject to  
            the terms of the relevant contract.  Repeals the prohibition  
            for paying for a service provided by telephone or facsimile  
            and would instead prohibit health plans and insurers from  








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            limiting the type of setting where services are provided for  
            the patient or by the health care provider. 

            SB 1665 (Thompson, Chapter 864, Statutes of 1996), establishes  
            the Telemedicine Development Act (TDA) to set standards for  
            the use of telemedicine by health care practitioners and  
            insurers.  TDA specifies, in part, that face-to-face contact  
            between a health care provider and a patient is not required  
            under the Medi-Cal Program for services appropriately provided  
            through telemedicine, when those services are otherwise  
            covered by the Medi-Cal program, and requires a health care  
            practitioner to obtain verbal and written consent prior to  
            providing services through telemedicine.  

          8)Support.  A number of Planned Parenthood affiliates write to  
            say that access to sensitive services, such as birth control  
            and STI testing, can be challenging for certain low-income  
            populations, particularly for those in rural and underserved  
            communities. Supporters state that payment for these  
            telehealth services should be expanded to include reproductive  
            health care in order to provide ease of access to reproductive  
            care, which will in turn minimize the spread of disease and  
            reduce the number of unintended pregnancies. The National  
            Health Law Program (NHeLP) states that there are many barriers  
            that interfere with a patient's ability to access care:  
            distance, lack of transportation, lack of child care, as well  
            as others. NHeLP states that timeliness is especially  
            important to the delivery of quality reproductive health care  
            services, in addition to other fields of medicine and that  
            telehealth plays a critical role in ensuring timely health  
            care delivery. The County Health Executives Association of  
            California writes that telemedicine has been a useful tool in  
            expanding services, especially to the more rural areas of  
            California where access to care can be difficult. The  
            California Family Health Council (CFHC) writes that women with  
            unintended pregnancies are less likely to receive prenatal  
            care, and health outcomes are worse for both mother and baby.  
            CFHC asserts that paying Medi-Cal providers to provide sexual  
            and reproductive health care via telehealth would ease access  
            to these services, which will in turn minimize the spread of  
            disease and reduce the number of unintended pregnancies and  
            could also expand the patient base who might be interested in  
            these services. The California Academy of Family Physicians  
            states that this bill empowers patients by allowing them more  
            control over their care, which leads to improved  








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            connectedness, continuity, and overall quality of the  
            patient-provider relationship.  The California Medical  
            Association states that not only do telehealth services reduce  
            the use of expensive services, increase access, and improve  
            quality of care, but patients also feel more satisfaction with  
            their care.  Stanford Health Care writes that efforts to  
            expand telehealth coverage and reimbursement are to be  
            supporter to better address the numerous health issues  
            Californians face.  The American Civil Liberties Union writes  
            that this bill aligns with California's historic leadership in  
            establishing public policies that increase access to  
            reproductive health care, which in turn, minimizes the spread  
            of STIs and reduces the number of unintended pregnancies in  
            the state.

          9)Oppose. The California Catholic Conference writes that  
            eliminating the requirement for a face-to-face visit with a  
            reproductive health care professional, alongside other types  
            of non-invasive medical care and in order to achieve  
            additional cost-savings to the state, is a potential direct  
            reduction in the standard of care for women on publicly  
            subsidized health care and bad public policy.  CCC states that  
            because of the marvelous blessing bestowed upon women by our  
            ever-loving God, which allows for the miracle of life and is  
            intended for procreation for only part of their lives, women  
            should demand that the medical profession work with their  
            reproductive health, which must remain its own class of  
            medical care and deserves respect, understanding and  
            acceptance by all.

          10)Oppose unless amended.  The California Association of Health  
            Plans (CAHP) writes that they support the objectives of  
            telehealth in improving enrollee access to health care as a  
            means of controlling health care costs; however, they must  
            oppose this Medi-Cal coverage mandate. CAHP writes that this  
            bill does not add these telehealth services as a visit that is  
            counted as a patient encounter, and if telehealth visits are  
            not counted in the rate setting process then Medi-Cal managed  
            care plans will not be compensated for the provisions of these  
            services.
            
           SUPPORT AND OPPOSITION  :
          Support:  Planned Parenthood Affiliates of California (sponsor)
                    American Civil Liberties Union of California 
                    American Congress of Obstetricians and Gynecologists,  








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                    District IX (California)
                                                                                        California Academy of Family Physicians
                    California Family Health Council 
                    California Medical Association 
                    The Children's Partnership
                    Community Action Fund of Planned Parenthood of Orange  
                    and San         Bernardino Counties
                    County Health Executives Association of California
                    National Health Law Program 
                    Planned Parenthood Action Fund of the Pacific  
                    Southwest 
                    Planned Parenthood Action Fund of Santa Barbara,  
                    Ventura & San Luis Obispo
                    Planned Parenthood Advocacy Project Los Angeles County  

                    Planned Parenthood Mar Monte
                    Planned Parenthood Northern California Action Fund
                    Stanford Health Care 
          
          Oppose:   California Association of Health Plans (unless  
                    amended)
                    California Catholic Conference
          
                                      -- END --