BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 999| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 999 Page 2 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 SB 999 Page 3 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 SB 999 Page 4 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. SB 999 Page 5 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. SB 999 Page 6 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 **** END **** SB 999 Page 7