BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 999


                                                                    Page  1





          Date of Hearing:  June 28, 2016


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                  Rudy Salas, Chair


                      SB 999(Pavley) - As Amended June 20, 2016


          SENATE VOTE:  29-6


          NOTE: This bill is double-referred, having been previously heard  
          by the Assembly Committee on Health on June 14, 2016 and  
          approved on a 13-0 vote.


          SUBJECT:  Health insurance:  contraceptives:  annual supply


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


          EXISTING LAW:   


          1)Establishes the Department of Managed Care (DMHC) to regulate  
            health plans under the Knox-Keene Health Care Service Plan Act  
            of 1975 and the Department of Insurance (CDI) to regulate  
            health insurers under the Insurance Code.  (Health and Safety  
            Code §§ 1340, et seq.)
          2)Establishes the Medi-Cal program, which is administered by the  
            State Department of Health Care Services (DHCS), under which  








                                                                     SB 999


                                                                    Page  2





            qualified low-income persons receive health care benefits and,  
            in part, governed and funded by federal Medicaid program  
            provisions.  (Welfare and Institutions Code §§ 14000, et seq.)


          3)Establishes the Board of Pharmacy (BOP) to regulate the  
            practice of pharmacy, including the licensure of pharmacists.  
            (Business and Professions Code (BPC) §§ 4000, et seq.)


          4)Requires a health plan contract, or a group or individual  
            policy of disability insurance, except for a specialized  
            health plan contract or a specialized health insurance policy,  
            that is issued, amended, renewed, or delivered on or after  
            January 1, 2016, to provide coverage for all of the following  
            services and contraceptive methods for women:  (Insurance Code  
            (INS) § 10123.196(b)(1))



             a)   All FDA-approved contraceptive drugs, devices, and other  
               products for women, including all FDA-approved  
               contraceptive drugs, devices, and products available over  
               the counter, as prescribed by the enrollee's or insured's  
               provider;



             b)   Voluntary sterilization procedures;



             c)   Patient education and counseling on contraception; and,



             d)   Follow-up services related to the drugs, devices,  
               products, and procedures, including, but not limited to,  
               management of side effects, counseling for continued  








                                                                     SB 999


                                                                    Page  3





               adherence, and device insertion and removal.


          5)Prohibits a health plan or disability insurer from imposing a  
            deductible, coinsurance, copayment, or any other cost-sharing  
            requirement on the coverage provided pursuant to contraceptive  
            coverage, except in the case of a grandfathered health plan.   
            Prohibits cost sharing from being imposed on any Medi-Cal  
            beneficiary.  (INS § 10123.196(b)(2))
          6)Permits a religious employer to request a health plan contract  
            or disability insurance policy without coverage for  
            FDA-approved contraceptive methods that are contrary to the  
            religious employer's religious tenets, and requires a health  
            plan contract or disability insurance policy to be provided  
            without coverage for contraceptive methods, if requested.   
            (INS § 10123.196(e))


          7)Establishes as California's essential health benefits (EHBs)  
            as the Kaiser Small Group HMO plan, along with the following  
            10 federally mandated benefits under the Patient Protection  
            and Affordable Care Act (ACA), as well as other existing state  
            mandated benefits:  (INS § 10112.27)


             a)   Ambulatory patient services;


             b)   Emergency services;


             c)   Hospitalization;


             d)   Maternity and newborn care;


             e)   Mental health and substance use disorder services,  
               including behavioral health treatment;








                                                                     SB 999


                                                                    Page  4







             f)   Prescription drugs;


             g)   Rehabilitative and habilitative services and devices;


             h)   Laboratory services;


             i)   Preventive and wellness services and chronic disease  
               management; and,


             j)   Pediatric services, including oral and vision care.


          8)Permits a pharmacist to dispense no more than 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 followed by periodic refills of that  
            amount, if specified requirements are satisfied, such as the  
            patient has completed an initial 30-day supply of the  
            dangerous drug.  Prohibits a pharmacist from dispensing a  
            greater supply of a dangerous drug if the prescriber  
            personally indicates, either orally or in his or her own  
            handwriting, "No change to quantity," or words of similar  
            meaning.  (BPC § 4064.5)
          9)Permits a pharmacist to furnish self-administered hormonal  
            contraceptives in accordance with standardized procedures or  
            protocols developed and approved by both the BOP and the  
            Medical Board of California in consultation with the American  
            Congress of Obstetricians and Gynecologists (ACOG), the  
            California Pharmacists Association, and other appropriate  
            entities.  (BPC § 4052.3)


          10)   Requires the standardized procedure or protocol in 9)  








                                                                     SB 999


                                                                    Page  5





            above to require that the patient use a self-screening tool  
            that will identify patient risk factors for use of  
            self-administered hormonal contraceptives, based on the  
            current United States Medical Eligibility Criteria for  
            Contraceptive Use developed by the federal Centers for Disease  
            Control and Prevention (CDC), and that the pharmacist refer  
            the patient to the patient's primary care provider or, if the  
            patient does not have a primary care provider, to nearby  
            clinics, upon furnishing a self-administered hormonal  
            contraceptive, or if it is determined that use of a  
            self-administered hormonal contraceptive is not recommended.   
            (BPC § 4052.3(a)(1))


          11)   Requires the pharmacist to provide the patient a  
            standardized fact sheet that includes, but is not limited to,  
            the indications and contraindications for use of the drug, the  
            appropriate method for using the drug, the need for medical  
            follow-up, and other appropriate information, developed, as  
            specified.  (BPC § 4052.3(c))


          THIS BILL: 


          1)Requires health care service plan (health plan) contracts and  
            health insurance policies, issued, amended, renewed, or  
            delivered on or after January 1, 2017, to provide coverage for  
            up to a 12-month supply of FDA-approved contraceptives when  
            dispensed at one time for an enrollee by a provider,  
            pharmacist, or at a location licensed or otherwise authorized  
            to dispense drugs or supplies.  
          2)Prohibits construing this bill to require contraceptive  
            coverage by an out-of-network provider, pharmacy, or location  
            licensed or otherwise authorized to dispense drugs or  
            supplies, except as otherwise authorized by state or federal  
            law or by the health plan's policies regarding out-of-network  
            coverage.









                                                                     SB 999


                                                                    Page  6






          3)Prohibits construing this bill to require a provider to  
            prescribe, furnish, or dispense 12 months of contraceptives at  
            one time.  


          4)Provides that a pharmacist furnishing self-administered  
            hormonal contraction pursuant to the BOP protocols may  
            dispense, at the patient's request, up to a 12-month supply at  
            one time.


          FISCAL EFFECT:  According to the Senate Committee on  
          Appropriations, this bill will result in:


          1)Minor costs to review information from health insurers by the  
            [CDI].
          2)No significant costs are anticipated to review health plan  
            information by the [DMHC].


          3)No significant costs or savings are projected for the Medi-Cal  
            program.  According to an analysis of the bill by the  
            California Health Benefits Review Program, utilization of  
            hormonal contraceptives by Medi-Cal enrollees is not expected  
            to increase significantly.  This is because Medi-Cal already  
            covers up to a 12-month supply of oral contraceptives and  
            utilization of the other covered forms of contraception is  
            very low.  Therefore, there is no significant increase in  
            utilization anticipated nor is there an anticipated reduction  
            in health care services related to unintended pregnancy. 


          4)Annual premium savings to the CalPERS system of about $2  
            million per year, due to reduced health care costs associated  
            with unintended pregnancies.  About half of those savings  
            would accrue to the state General Fund and special funds and  
            half would accrue to local governments.








                                                                     SB 999


                                                                    Page  7







          5)No state costs to subsidize coverage through Covered  
            California are anticipated. Under federal law, the costs of  
            any state-imposed benefit mandate that exceeds the essential  
            health benefits included in the state's benchmark plan is a  
            state responsibility. In other words, if the state imposes a  
            new benefit mandate on health plans or health insurers that  
            sell coverage through Covered California, the state is  
            obligated to pay for the cost to subsidize that benefit  
            mandate for enrollees receiving federal subsidies. Because the  
            bill does not impose a new benefit mandate, but only changes  
            the terms of an existing mandate to cover contraceptives, the  
            bill does not expand the state's essential health benefits.


          COMMENTS:  


          Purpose.  This bill is sponsored by  Planned Parenthood  
          Affiliates of California , the  California Family Health Council  ,  
          and  NARAL, Pro-Choice America  .  According to the author, "SB 999  
          addresses a leading barrier to obtaining consistent access to  
          contraception by changing the timing of contraception  
          dispensing.  Under current law, health insurance companies and  
          plans must limit their coverage of birth control to a one-or-  
          three- month supply.  This practice can lead to unwanted gaps in  
          use and increase unintended pregnancies.  Inconsistent supplies  
          of birth control are problematic for many women who have  
          unpredictable work hours, difficulty accessing transportation,  
          or other barriers preventing them from accessing a provider,  
          pharmacy or clinic, in a timely manner.   By allowing women to  
          receive up to a 12 month supply of birth control at one time,  
          women can better control their birth control use. The CA Health  
          Benefits Review Panel estimates that under the bill, costs to  
          employers and consumers would be reduced by over $42 million  
          annually, with 15,000 fewer unintended pregnancies, and 7000  
          fewer abortions each year.  The report cited that the program  
          found no difference in medical health risks in 3, 6, or 12 month  








                                                                     SB 999


                                                                    Page  8





          dispensation.   Given that California has a continued access to  
          care crisis, a provider shortage and high rates of unintended  
          pregnancy, California must continue to find inventive ways to  
          remove barriers to providing consistent contraception."


          Background.  Methods of Birth Control.  Contraceptives  
          prescribed by a healthcare provider are in hormonal or  
          non-hormonal forms.  Hormonal contraceptives are made up of  
          female sex hormones: estrogen or progestin (a synthetic form of  
          progesterone). The most popular hormonal contraceptive is the  
          combination pill, or oral contraceptive.  Other hormonal  
          contraceptives include injected progestins, subdermal implants  
          that release progestins, transdermal patch, and vaginal rings.  
          Non-hormonal methods include use of an intrauterine device,  
          cervical cap, diaphragm, and contraceptive sponge.


          Pharmacists' Procedures and Protocols for Furnishing Hormonal  
          Contraceptives.  Section 4052.3(a)(1) of the BPC authorizes a  
          pharmacist to furnish self-administered hormonal contraceptives  
          in accordance with a protocol approved by the BOP and  the MBC.  
          The purpose of the protocol is to ensure timely access to  
          self-administered hormonal contraception medication and that the  
          patient receives adequate information to successfully comply  
          with therapy. 


          When a patient requests self-administered hormonal  
          contraception, the pharmacist measures and record the patient's  
          seated blood pressure, if combined hormonal contraceptives are  
          requested or recommended. The pharmacist also ensures that the  
          patient is appropriately trained in the administration of the  
          requested or recommended contraceptive medication, and has the  
          patient complete an annual self-screening tool that will  
          identify patient risk factors for use of self-administered  
          hormonal contraceptives, based on the current United States  
          Medical Eligibility Criteria (USMEC) for Contraceptive Use  
          developed by the federal Centers for Disease Control and  








                                                                     SB 999


                                                                    Page  9





          Prevention.  


          Health Insurance Plans.  Under current law, health insurance  
          companies and plans must limit their coverage of birth control  
          to a one or three month supply.  This practice can lead to  
          unwanted gaps in birth control use and an increased incidence of  
          unintended pregnancies.  According to the author, inconsistent  
          supplies of birth control are particularly problematic for many  
          women who have unpredictable work hours, difficulty accessing  
          transportation, or other barriers preventing them from accessing  
          a provider, pharmacy, or clinic, in a timely manner.


          Studies and Reports of the Impact of Annual Dispensing of  
          Hormonal Contraceptives.  In 2013, the CDC recommended that  
          women be provided with a year's supply of self-administered  
          hormonal contraceptives.  In January of 2015, the ACOG issued  
          guidelines that recommend that payment and practice policies  
          support annual dispensing of contraceptives. 


          According to a study from the University of California San  
          Francisco (UCSF), 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.  California's Family Pact  
          Program for low-income women has successfully provided annual  
          dispensing of contraception the last two decades.  In addition,  
          as of February 5, 2016, the DHCS is now requiring all Medi-Cal  
          managed care plans to pay for 12 month dispensing.


          On March 28, 2016, the California Health Benefits Review Program  
          (CHBRP) released its analysis of SB 999.   The report cited,  
          "there is a preponderance of evidence that annual dispensing  
          leads to a reduction in unintended pregnancy and related  
          outcomes."  It estimated that costs to employers and consumers  
          would be reduced by over $42 million annually, and estimated  








                                                                     SB 999


                                                                    Page  10





          that as a result of the bill, there would be 15,000 fewer  
          unintended pregnancies, and 7000 fewer abortions each year.  In  
          addition, the report cited that the program found no difference  
          in medical health risks in three, six, or twelve month  
          dispensation. 


          Other States.  This past year, both Oregon and the District of  
          Columbia enacted new laws requiring the annual dispensing of  
          contraception.   Similar legislation is being considered in  
          Colorado Washington, Wisconsin, New York, and Hawaii. 


          REGISTERED SUPPORT:


          Alameda County Board of Supervisors


          American Congress of Obstetricians and Gynecologists


          California Academy of Family Physicians


          California Pan Ethnic Health Network


          City Council of West Hollywood


          Having Our Say


          Health Access


          March of Dimes California









                                                                     SB 999


                                                                    Page  11






          Planned Parenthood Affiliates of California


          Planned Parenthood Pasadena and San Gabriel Valley


          Planned Parenthood LA County


          Planned Parenthood San Bernardino


          Planned Parenthood Ventura


          Planned Parenthood San Luis Obispo


          Planned Parenthood Mar Monte


          Planned Parenthood Northern California Action Fund


          Planned Parenthood Community Action Fund of Orange and San  
          Bernardino


          Santa Clara County Democratic Activists for Women Now


          


          REGISTERED OPPOSITION:


          Association of California Life and Health Insurance Companies








                                                                     SB 999


                                                                    Page  12







          Analysis Prepared by:Le Ondra Clark Harvey, Ph.D. / B. & P. /  
          (916) 319-3301