BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 999  
          (Pavley) - As Amended August 1, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill requires coverage for up to a 12-month supply of Food  
          and Drug Administration-approved, self-administered hormonal  
          contraceptives (contraceptives) and permits pharmacists to  
          dispense these contraceptives consistent with existing protocols  
          and upon a patient's request. 










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          FISCAL EFFECT:


          1)According to the California Health Benefits Review Program  
            (CHBRP), this bill will result in overall health savings in  
            the health care industry due to reduced office visits and  
            reduced unintended pregnancies, which will reduce prenatal  
            care, abortions, and labor and delivery costs.  Costs by payer  
            are as follows: 



             a)   No significant costs or savings to Medi-Cal managed care  
               (GF/federal).  CHBRP notes utilization of hormonal  
               contraceptives by Medi-Cal enrollees is not expected to  
               increase significantly, 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.  



             b)   Annual premium cost savings to CalPERS of about $2  
               million per year, due to reduced health care costs  
               associated with unintended pregnancies (GF/ special/  
               federal/ local). Cost savings are split approximately 50-50  
               between state and local government.



             c)   Annual employer-funded premium cost savings in the  
               private insurance market of approximately $12.5 million. 



             d)   Decreased premium expenditures by employees and  
               individuals purchasing insurance of $9.4 million, and  








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               reduced total out-of-pocket expenses of $18.7 million. 
           


          2)The Department of Health Care Services notes an impact to  
            fee-for-service Medi-Cal and Family Planning Access to Care  
            and Treatment (Family PACT) in the amount of $38.3 million  
            ($7.9 million GF/remainder federal).  Based on CHBRP's  
            analysis of the impact of a 12-month supply on unintended  
            pregnancies, this cost appears likely to be fully offset by  
            reductions in costs for unintended pregnancies, office visits,  
            abortions, and other services. 


          3)Minor costs to the California Department of Insurance  
            (Insurance Fund) and the Department of Managed Health Care  
            (Managed Care Fund) to verify plans and insurers comply with  
            this requirement.



          COMMENTS:


          1)Purpose.  This bill seeks to reduce gaps in birth control use  
            by facilitating adherence to prescription contraceptives.  The  
            author notes it can be difficult and burdensome for women,  
            particularly those who are low-income and/or live in rural  
            areas, to visit a pharmacy every month or 90 days to refill  
            prescriptions for contraceptives.  The author notes a recent  
            study found women who received a full year's worth of birth  
            control pills at one time were 30% less likely to have an  
            unintended pregnancy than women who received a one-month or  
            three-month supply.  


          2)Background. Current law limits dispensing of drugs at  
            pharmacies to a maximum of a 90-day supply.  Dispensing  
            12-month supplies of contraceptives has been recommended by  








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            experts and has been allowed in some state Medicaid programs  
            and state family planning programs, including California's  
            Medi-Cal and Family PACT programs, which currently provide  
            12-month supplies of oral contraceptives. In 2013, the federal  
            Centers for Disease Control and Prevention recommended that  
            women be provided with 12-month supplies of self-administered  
            hormonal contraceptives, and in January 2015, American  
            Congress of Obstetricians and Gynecologists also issued  
            guidelines that recommended payment and practice policies that  
            support such annual dispensing.  A number of other states have  
            12-month dispensing laws, or have such laws under  
            consideration.    


          3)CHBRP Findings. Currently, most contraceptives are dispensed  
            in a 30-day supply, while about a third are dispensed in a  
            90-day supply. As a result of this bill, CHBRP estimates a  
            decrease in unintended pregnancies of 15,000 (which includes  
            6,000 fewer live births, 2,000 fewer miscarriages, and 7,000  
            fewer abortions).   CHBRP projects this bill would also result  
            in a decrease in the rate of unintended pregnancies over the  
            long term, reducing negative outcomes associated with  
            unintended pregnancies for both mothers and children.  CHBRP  
            also notes avoiding unintended pregnancies also helps women to  
            delay childbearing and pursue additional education, spend  
            additional time in their careers, and have increased earning  
            power.


          4)Support.  This bill is sponsored by Planned Parenthood  
            Affiliates of California, NARAL Pro-Choice California, and the  
            California Family Health Council, who believe this bill will  
            reduce burdens on women, as well as lead to more consistent  
            contraceptive use and fewer unintended pregnancies.  


          5)Opposition.  The Association of California Life and Health  
            Insurance Companies (ACLHIC) and California Association of  
            Health Plans (CAHP) are opposed unless amended, seeking  








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            amendments to allow an insurer to request that a patient be  
            stabilized on the medication prior to the 12-month supply  
            being filled as well as a one-year implementation delay.  The  
            California Right to Life Committee is in opposition. 


          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081