BILL ANALYSIS Ó SB 999 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 999 (Pavley) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Health |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Business and Professions | |13 - 2 | | | | | | | | | | | ----------------------------------------------------------------- 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. SB 999 Page 2 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 SB 999 Page 3 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 SB 999 Page 4 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 SB 999 Page 5 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