BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 999|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 999
          Author:   Pavley (D), et al.
          Amended:  4/18/16  
          Vote:     21 

           SENATE BUS., PROF. & ECON. DEV. COMMITTEE:  7-0, 4/4/16
           AYES:  Hill, Block, Galgiani, Hernandez, Jackson, Mendoza,  
            Wieckowski
           NO VOTE RECORDED:  Bates, Berryhill

           SENATE HEALTH COMMITTEE:  7-1, 4/13/16
           AYES:  Hernandez, Hall, Mitchell, Monning, Pan, Roth, Wolk
           NOES:  Nielsen
           NO VOTE RECORDED:  Nguyen

           SENATE APPROPRIATIONS COMMITTEE:  5-1, 5/16/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Nielsen
           NO VOTE RECORDED:  Bates

           SUBJECT:   Health insurance:  contraceptives:  annual supply


          SOURCE:    California Family Health Council
                     NARAL Pro-Choice California
                     Planned Parenthood Affiliates of California

          DIGEST:   This bill authorizes a pharmacist to dispense a  
          12-month supply of United States Food and Drug Administration  
          (FDA)-approved, self-administered hormonal contraceptives (SAHC)  
          and requires insurance to cover the cost.


          ANALYSIS:  









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          Existing law:


          1) Establishes the Board of Pharmacy to administer the Pharmacy  
             Law. (Business and Professions Code (BPC) Sections 4000 et  
             seq.) 

          2) Authorizes a pharmacist to dispense a 90-day supply of a  
             dangerous drug other than a controlled substance pursuant to  
             a valid prescription that specifies an initial quantity of  
             less than a 90-day supply under certain circumstances.   
             Prohibits a pharmacist from dispensing a greater supply if  
             the prescriber indicates otherwise.  (BPC § 4064.5)  

          3) Authorizes a pharmacist to furnish SAHC in accordance with  
             standardized procedures or protocols.  (BPC § 4052.3)

          This bill:

          1) Makes findings related to the benefits of providing a  
             12-month supply of FDA-approved SAHC. 

          2) Provides an exception to the prohibition on pharmacists  
             dispensing no more than a 90-day supply of a dangerous drug  
             for FDA-approved SAHC.    

          3) Requires that a prescription for FDA-approved SAHC be  
             dispensed as provided on the prescription, including, but not  
             limited to, a prescription for a 12-month supply.

          4) Authorizes a pharmacist furnishing FDA-approved SAHC pursuant  
             to a protocol to dispense, at the patient's request, up to a  
             12-month supply at one time.

          5) Does not require a provider to prescribe, furnish, or  
             dispense 12 months of SAHC at one time.

          6) Does not require a policy or health care service plan to  
             cover contraceptives provided by an out-of-network provider,  
             pharmacy, or location licensed or otherwise authorized to  
             dispense drugs or supplies, except as may be otherwise  








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             authorized by state or federal law or by the insurer's  
             policies governing out-of-network coverage.

          7) Requires every health care service plan contract and every  
             group or individual policy of disability insurance, except  
             for a specialized health insurance policy, that is issued,  
             amended, renewed, or delivered on or after January 1, 2017,  
             to cover up to a 12-month supply of FDA-approved SAHC when  
             dispensed at one time for an insured or an enrollee by a  
             provider, pharmacist, or at a location licensed or otherwise  
             authorized to dispense drugs or supplies.
          
          Background

          Pharmacies are constrained by state law from providing more than  
          a three-month supply of SAHC pursuant to a prescription.   
          However, certain clinics that dispense SAHC through a Medi-Cal  
          program, Family Planning, Access, Care and Treatment (PACT), may  
          provide up to a year's supply.  This provided an ideal  
          environment to study the effects of an increase in SAHC supply  
          on unintended pregnancies.        

          The results were published in a 2011 edition of Obstetrics and  
          Gynecology, the medical journal of the American College of  
          Obstetricians and Gynecologists (ACOG).  In the "Number of Oral  
          Contraceptive Pill Packages Dispensed and Subsequent Unintended  
          Pregnancies," researchers found that women who received a full  
          year's worth of pills at one time were 30 percent less likely to  
          have an unintended pregnancy than women who received either a  
          one-month or three-month supply of pills.  There was no  
          definitive reason for this reduction in unintended pregnancies,  
          but analysts believe that several factors contributed including:  
           (1) having a larger supply on hand reduced the opportunity for  
          lapse in dosages due to the need to restock, and (2) each visit  
          to get more SAHC was an opportunity to reconsider taking it --  
          an extensive supply reinforced the idea that this method of  
          birth control was effective and safe.  

          Although minorities of women have complications from SAHCs, such  
          as blood clots, ACOG determined in a 2012 report that the risk  
          of getting a blood clot from a SAHC is less than it is for a  
          clot during or immediately following pregnancy.  If these  








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          results were to be borne across the state, significant  
          individual health benefits and financial savings could be  
          realized by preventing unintended pregnancies.     

          Endorsements and Other States' Practices

           The United States Centers for Disease Control recommended that  
            women be provided with a year's supply of SAHC in its  
            publication, "U.S. Selected Practice Recommendations for  
            Contraceptive Use, 2013:  Adapted from the World Health  
            Organization Selected Practice Recommendations for  
            Contraceptive Use, 2nd Edition."  

           ACOG recommended that payment and practice policies support  
            providing individuals with a 3- to 13-month supply of oral  
            contraceptives in January 2015.

           On February 5, 2015, the California Department of Health Care  
            Services began requiring all Medi-Cal managed care and their  
            delegates to pay for 12-month dispensing for SAHC.  

           Oregon and the District of Columbia passed laws in 2015  
            authorizing a 12-month supply of SAHC.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Senate Appropriations Committee analysis dated  
          May 2, 2016, this bill will result in minor costs to review  
          information from health insurers by the Department of Insurance  
          and annual premium savings to the California Public Employees'  
          Retirement System of about $2 million per year due to reduced  
          health care costs associated with unintended pregnancies.  This  
          bill is not anticipated to result in significant costs to review  
          health plan information by the Department of Managed Health Care  
          (Managed Care Fund), there are no significant costs or savings  
          projected for the Medi-Cal program and no state costs to  
          subsidize coverage through Covered California are anticipated.  










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          SUPPORT:   (Verified5/17/16)


          California Family Health Council (co-source)
          NARAL Pro-Choice California (co-source)
          Planned Parenthood Affiliates of California (co-source)
          Alameda County Board of Supervisors
          American Civil Liberties Union 
          American Congress of Obstetricians and Gynecologists, District  
          IX California
          American Medical Women's Association
          Asian Law Alliance
          Bayer Corporation
          Black Women for Wellness
          California Academy of Family Physicians
          California Academy of Physician Assistants
          California Medical Association
          California Pan-Ethnic Health Network 
          California Primary Care Association
          California Religious Coalition for Reproductive Choice
          California Women's Law Center
          El Proyecto del Barrio, Inc.
          Forward Together
          Health Access of California 
          Jewish Family Support Services 
          March of Dimes Foundation
          National Association of Social Workers, California Chapter
          Physicians for Reproductive Health
          Planned Parenthood Action Fund of the Pacific Southwest 
          Planned Parenthood Advocacy Project Los Angeles County 
          Planned Parenthood Northern California Action Fund 


          OPPOSITION:   (Verified5/17/16)


          America's Health Insurance Plans 
          Association of California Life and Health Insurance Companies
          California Association of Health Plans
          California Catholic Conference, Inc.








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          California Right to Life Committee 

          ARGUMENTS IN SUPPORT:   Supporters like Planned Parenthood  
          Affiliates of California believe this bill will improve access  
          to contraceptives by allowing a woman to receive a year's supply  
          of prescribed hormonal contraceptives rather than requiring her  
          to return every 30 to 90 days to obtain a refill.  Supporters  
          states that for birth control to be effective, consistency is  
          essential.  For many women, particularly those who live in low  
          income rural areas, receiving only short supply of contraception  
          can impede their ability to use birth control on a consistent  
          basis. Additionally, studies show that dispensing a 12-month  
          supply of birth control at one time reduces a woman's odds of  
          having an unintended pregnancy by 30%. 

          ARGUMENTS IN OPPOSITION:   Opponents do not believe that  
          dispensing a full year of birth control at one time is a  
          practical solution and state that the consequences of this bill  
          could very well result in the duplication of coverage by  
          different insurers, and an increase in wasted medication.   
          Opponents are also concerned that the bill does not specify that  
          for new medication, an insurer may require a patient to try an  
          initial 30- or 90-day supply prior to filling the 12-month  
          supply and without incorporating a mandatory trial period, it is  
          inevitable that there will be a rise in unused medication, as  
          some women will choose to switch medications due to unexpected  
          side effects, or even a change in the desire or need to use  
          contraceptives.  Opponents state that the 12-month supply would  
          likely end up either partially used or altogether unused, which  
          inevitably would increase the amount of pharmaceutical waste. 



          Prepared by:Sarah Huchel / B., P. & E.D. / (916) 651-4104
          5/18/16 16:27:53


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