BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 1034             
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          |AUTHOR:        |Mitchell                                       |
          |---------------+-----------------------------------------------|
          |VERSION:       |February 12, 2016                              |
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          |HEARING DATE:  |April 20, 2016 |               |               |
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          |CONSULTANT:    |Teri Boughton                                  |
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           SUBJECT  :  Health care coverage:  autism

           SUMMARY  :  Eliminates the sunset date on the health insurance mandate to  
          cover behavioral health treatment for pervasive developmental  
          disorder or autism, and makes other revisions to the law such as  
          requiring all medically necessary behavioral health treatment to  
          be covered in all settings regardless of time or location of  
          delivery.
          
          Existing law:
          1)Establishes the Department of Managed Health Care (DMHC) to  
            regulate health plans under the Knox-Keene Health Care  
            Services Plan Act of 1975 in the Health and Safety Code; the  
            California Department of Insurance (CDI) to regulate health  
            insurers under the Insurance Code; and, the California Health  
            Benefit Exchange (Exchange) to compare and make available  
            through selective contracting health insurance for individual  
            and small business purchasers as authorized under the federal  
            Patient Protection and Affordable Care Act (ACA).

          2)Establishes as California's essential health benefits (EHBs)  
            benchmark the Kaiser Small Group Health Maintenance  
            Organization plan, existing California mandates, and the  
            following 10 ACA mandated benefits:

                    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;
                    f)          Prescription drugs;
                    g)          Rehabilitative and habilitative services  







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                      and devices;
                    h)          Laboratory services;
                    i)          Preventive and wellness services and  
                      chronic disease management; and,
                    j)          Pediatric services, including oral and  
                      vision care.

          3)Requires every health plan contract that provides hospital,  
            medical, or surgical coverage and health insurance policy to  
            also provide coverage for behavioral health treatment for  
            pervasive developmental disorder or autism no later than July  
            1, 2012.  Requires the coverage to be provided in the same  
            manner and to be subject to the same requirements as provided  
            in California's mental health parity law.

          4)Requires DMHC, in consultation with CDI, to convene a task  
            force by February 1, 2012, to develop recommendations  
            regarding behavioral health treatment that are medically  
            necessary for the treatment of individuals with pervasive  
            developmental disorder or autism, as specified.  Requires DMHC  
            to submit a report of the task force to the Governor,  
            President pro Tem of the Senate, the Speaker of the Assembly,  
            and the Senate and Assembly Committees on Health by December  
            31, 2012, on which date the task force ceases to exist.

          5)Exempts from 3) above a specialized health plan or health  
            insurance policy that does not deliver mental health or  
            behavioral health services to enrollees, or an accident only,  
            specified disease, hospital indemnity, or Medicare supplement  
            policy, a health plan contract or health insurance policy  
            under Medi-Cal or Healthy Families program, and a health care  
            benefit plan or contract pursuant to the Public Employees'  
            Retirement System (PERS).

          6)Sunsets the provisions described in 3) through 5) above on  
            January 1, 2017.

          This bill:
          1)Revises the definition of "behavioral health treatment" to  
            include other evidence-based behavior intervention programs  
            that maintain the functioning of an individual with pervasive  
            developmental disorder, as specified.

          2)Deletes requirements in law that qualified autism service  
            professionals and paraprofessionals are employed by qualified  








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            autism service providers.

          3)Requires treatment plans to be reviewed no more (rather than  
            no less) than once every six months by the autism service  
            provider, unless a shorter period is recommended by the  
            qualified autism provider.

          4)Specifies that parent or caregiver participation in the  
            treatment plan is recommended by the qualified autism service  
            provider, and prohibits lack of parent or caregiver  
            participation from being used to deny or reduce medically  
            necessary behavioral health treatment.

          5)Permits intensive behavioral intervention services to be  
            discontinued when the treatment goals and objectives are  
            achieved or no longer appropriate, and continued therapy is  
            not necessary to maintain function or prevent deterioration.

          6)Requires all medically necessary behavioral health treatment  
            to be covered in all settings regardless of time or location  
            of delivery.

          7)Revises the definition of "qualified autism service  
            professional" to include someone who provides clinical  
            management and care supervision, deletes a requirement that he  
            or she is approved as a vendor by a California regional  
            center, and instead, requires him or her to meet the education  
            and experience qualifications defined in regulations, as  
            specified. 

          8)Revises the definition of "qualified autism service  
            paraprofessional" to indicate that the paraprofessional  
            provides treatment and implements services pursuant to a plan  
            developed and approved by a qualified autism service  
            professional.

          9)Deletes exemptions from the law for plans that participate in  
            Healthy Families (which no longer exists) and the CalPERS.

          10)Deletes the sunset date in existing law. 

           











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          FISCAL  
          EFFECT  :  This bill has not been analyzed by a fiscal committee.
           
          COMMENTS  :
          1) Author's statement.  According to the author, this bill would  
            ensure that children diagnosed with autism continue to have  
            access to medically necessary treatments to increase their  
            quality of life and functional independence by removing the  
            2017 sunset on the requirement for health plans and insurers  
            to provide behavioral health treatments to children with  
            autism.   

            CHBRP analysis.  AB 1996 (Thomson, Chapter 795, Statutes of  
            2002), requests the University of California to assess  
            legislation proposing a mandated benefit or service and  
            prepare a written analysis with relevant data on the medical,  
            economic, and public health impacts of proposed health plan  
            and health insurance benefit mandate legislation. CHBRP was  
            created in response to AB 1996, and reviewed this bill.  Key  
            findings include:

                    a)          Coverage impacts and enrollees covered. In  
                      2017, 18.3 million of 25.2 million Californians have  
                      state-regulated health insurance that would be  
                      subject to SB 1034. Approximately, 94% of enrollees  
                      with health insurance subject to SB 1034 would gain  
                      benefit coverage; 
                    b)          Essential health benefits. For two  
                      reasons, SB 1034 would not trigger financial costs  
                      to the state for exceeding EHBs. First, SB 1034  
                      alters the terms and conditions of an existing  
                      benefit mandate, but does not require an additional  
                      benefit to be covered. Second, the current law that  
                      SB 1034 would alter expressly indicates that it  
                      ceases to function if it exceeds EHBs and SB 1034  
                      does not eliminate this clause of the current law  
                      (so neither the current law nor the version SB 1034  
                      would create function if they are deemed to exceed  
                      EHBs); 
                    c)          Medical effectiveness. CHBRP found  
                      insufficient evidence to determine whether  
                      behavioral health treatment aimed at maintaining  
                      function derived from intensive behavioral health  
                      treatments is effective. Studies have not separately  








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                      examined its effects on improvement of functioning  
                      from its effects on maintenance of improvements in  
                      functioning. In light of the large body of evidence  
                      from studies with moderately strong research designs  
                      that behavioral health treatment improves  
                      functioning across multiple domains, it stands to  
                      reason that it could also be useful for maintaining  
                      functioning. A preponderance of evidence from  
                      studies with moderately strong research designs  
                      suggests that parent/caregiver involvement in  
                      behavioral health treatment improves outcomes.  
                      However, evidence also suggests that behavioral  
                      health treatments are more effective than usual care  
                      regardless of the degree of parent/caregiver  
                      involvement. There is a preponderance of evidence  
                      from studies with moderately strong research designs  
                      that behavioral health treatment can be delivered  
                      effectively in multiple settings. There is  
                      insufficient evidence to assess the impact of  
                      prohibiting health plans from reviewing treatment  
                      plans more frequently than every six months. There  
                      is a preponderance of evidence from studies with  
                      moderately strong research designs that behavioral  
                      health treatment provided by persons who are trained  
                      or supervised by experienced behavioral health  
                      treatment providers improves outcomes; 
                    d)          Utilization. Utilization would increase to  
                      47 annual hours per 1,000 enrollees (up by 3 hours).  
                      Although unquantifiable, the other aspects of SB  
                      1034 might also increase utilization of behavioral  
                      health treatment, particularly in the long term; 
                    e)          Impact on expenditures. Total premiums and  
                      cost sharing would increase by $8.3 million  
                      (0.006%); and, 
                    f)          Public health. Although the evidence is  
                      unclear, it seems reasonable to assume that there  
                      would be some improvement of some health outcomes  
                      for some enrollees with increased utilization. 

          2)Task Force. The Autism Advisory Task Force was established  
            pursuant to SB 946.  The Chair of the task force was the DMHC  
            Director, who was a non-voting member, and another 17 members  
            were appointed by the DMHC.  Members of the task force include  
            parents of children with autism and individuals with legal,  
            health plan, behavioral health, and medical expertise.  The  








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            charge of the task force was to make recommendations to inform  
            state policymaking and guide future recommendations addressing  
            six subjects and develop recommendations regarding the  
            education, training, and experience requirements that  
            unlicensed individuals providing autism services shall meet in  
            order to secure a license from the state.  The six subjects  
            are:

                    a)          Interventions that have been  
                      scientifically validated and have demonstrated  
                      clinical efficacy;
                    b)          Interventions that have measurable  
                      treatment outcomes;
                    c)          Patient selection, monitoring, and  
                      duration of therapy;
                    d)          Qualifications, training, and supervision  
                      of providers;
                    e)          Adequate networks of providers; and,
                    f)          The education, training, and experience  
                      requirements that unlicensed individuals providing  
                      autism services shall meet in order to secure a  
                      license from the state.

            A guiding principle of the task force was that every  
            individual with per is unique and the task force concluded  
            that behavioral health treatment needs to be highly  
            individualized.  With regard to pervasive development disorder  
            or autism, the task force considers the following diagnoses to  
            fall under the definition:  pervasive developmental  
            disorder-not otherwise specified, Autistic Disorder, Asperger  
            Syndrome, Rett's Syndrome, and Childhood Disintegrative  
            Disorder.  In all 55 recommendations were adopted, all but  
            one, on a consensus basis.  The task force concludes that all  
            "top level" (undefined) providers should be licensed by the  
            state, and set forth a process for establishing a new  
            professional license for "Licensed Behavioral Health  
            Practitioner."  The task force recommended that the license  
            requirement not take effect until three years after the  
            license is established, and an interim commission be formed to  
            implement the new license until a board is able to do so.  The  
            task force also recommended all providers of autism services  
            be registered with the state's TrustLine Registry or  
            comparable system as a condition of employment by service  
            organizations and contracting with health plans and health  
            insurers. TrustLine uses the criminal history background check  








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            system to check the fingerprints of applicants, and checks for  
            evidence of additional criminal records.

          3)Related legislation. AB 796 (Nazarian) would require the Board  
            of Psychology (BOP) to convene a committee to create a list of  
            evidence-based treatment modalities for purposes of developing  
            mandated behavioral health treatment modalities for pervasive  
            development disorder or autism.  Extends the sunset provisions  
            requiring health care service plans to provide health coverage  
            for behavioral health treatment for pervasive development  
            disorder or autism to January 1, 2022.  AB 796 is pending in  
            the Senate Health Committee.

          4)SB 479 (Bates) would establish the Behavior Analyst Act which  
            requires a person to apply for and obtain a license from the  
            Board of Psychology prior to engaging in the practice of  
            behavior analysis, as defined, either as a behavior analyst or  
            an assistant behavior analyst, and meet certain educational  
            and training requirements.  SB 479 is pending in the Senate  
            Rules Committee.


          5)Prior legislation. AB 2041 (Jones of 2014), would have  
            required that a regional center classify a vendor as a  
            behavior management consultant or behavior management  
            assistant if the vendor designs or implements evidence-based  
            behavioral health treatment, has a specified amount of  
            experience in designing or implementing that treatment, and  
            meets other licensure and education requirements. AB 2041  
            would have required the Department of Developmental Services  
            to amend its regulations as necessary to implement the  
            provisions of the bill.  AB 2041 died in the Senate  
            Appropriations Committee. 

            SB 126 (Steinberg, Chapter 680, Statutes of 2013), extends,  
            until January 1, 2017, the sunset date of an existing state  
            health benefit mandate that requires health plans and health  
            insurance policies to cover behavioral health treatment for  
            pervasive developmental disorder or autism and requires plans  
            and insurers to maintain adequate networks of these service  
            providers.

            SB 946 (Steinberg, Chapter 650, Statutes of 2011), requires  
            health plans and health insurance policies to cover behavioral  
            health treatment for pervasive developmental disorder or  








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            autism, requires health plans and insurers to maintain  
            adequate networks of autism service providers, establishes a  
            task force in DMHC, sunsets the autism mandate provisions on  
            July 1, 2014, and makes other technical changes to existing  
            law regarding HIV reporting and mental health services  
            payments.

            AB 1453 (Monning, Chapter 854, Statutes of 2012), and SB 951  
            (Ed Hernandez, Chapter 866, Statutes of 2012), established  
            California's essential health benefits.

            SB 770 (Steinberg of 2010) would have required health plans  
            and insurance policies to provide coverage for BHT. SB 770 was  
            held in the Assembly Appropriations Committee. 

            SB 166 (Steinberg of 2011) would have required health care  
            service plans licensed by DMHC and health insurers licensed by  
            CDI to provide coverage for behavioral health treatment for  
            autism. SB 166 was held in the Senate Health Committee. 

            AB 1205 (Bill Berryhill of 2011) would have required the Board  
            of Behavioral Sciences to license behavioral analysts and  
            assistant behavioral analysts, on and after January 1, 2015,  
            and included standards for licensure such as specified higher  
            education and training, fieldwork, passage of relevant  
            examinations, and national board accreditation. AB 1205 was  
            held in the Assembly Appropriations Committee on the suspense  
            file.

          6)Support.  According to Autism Speaks, at the time SB 946  
            passed there were a number of outstanding questions with  
            regards to mandated benefits, the Affordable Care Act, and the  
            State's fiscal responsibility. The sunset provides an  
            opportunity to revisit the issue.  The federal government has  
            since provided guidance on essential health benchmark  
            selection and implementation of the ACA, and behavioral health  
            treatments for children with autism are covered as an  
            essential health benefit.  DMHC has determined that behavioral  
            health treatments for autism are covered under California and  
            federal mental health parity, which extends to CalPERS.  Since  
            the passage of SB 946, countless children have received  
            treatment through their plans.  Proponents indicate that  
            frequent reviews delay treatment and can harm the progress of  
            the child.  Some health plans will not approve treatment that  
            is provided at a school, church or other community setting  








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            which can be critical for the development of the child.  This  
            issue has gone to the Independent Medical Review on multiple  
            occasions where it has been determined medically necessary  
            services; additionally parent participation requirements have  
            become a hurdle to accessing treatment. The Center for Autism  
            and Related Disorders writes that this bill makes changes to  
            the existing statute that will ensure timely access and limit  
            delays to treatment.
          
          7)Concern. The Association of Regional Center Agencies (ARCA)  
            expresses concern that allowing more flexibility in the  
            supervision of in-home staff without specifying how many staff  
            members can be supervised under one professional certification  
            could unintentionally diminish the quality of clinical  
            supervision.  Additionally, ARCA writes that the goal of  
            behavioral services is to help individuals to become more  
            functional in natural settings.  Expanding the settings and  
            limiting parent participation requirements would allow  
            individuals to develop skills that are not transferable to the  
            home or community environments and limit the effectiveness of  
            treatment.
          
          8)Opposition.  The California Chamber of Commerce (Chamber)  
            writes that this bill while well intentioned, undermines the  
            ability of health care issuers to promote and manage the use  
            of applied behavioral analysis for children with autism, and  
            will add to the problem of rising health care costs, making it  
            harder for Californians to access other important care.  The  
            Chamber is not aware of any peer reviewed studies that suggest  
            a professional treatment team must remain permanently involved  
            in a child's life to ensure these skills are maintained.  This  
            could lead to a shortage of available therapists and create  
            access issues for newly diagnosed children.  The Chamber  
            believes issuers should have the ability to begin tapering  
            treatment, and to monitor the impact of that reduction of  
            services more frequently than every six months.  It is  
            appropriate for issuers to make coverage contingent upon  
            caregiver participation since research on the effectiveness of  
            applied behavioral analysis shows unequivocally that it is  
            critical to the success of the treatment. Of greatest concern,  
            is if issuers are forced to cover all behavioral health  
            treatments in all settings, schools could deny educational  
            services or make these services harder to obtain, and thereby  
            shift these costs to public and private purchasers.  
          








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          9)Amendments. 
             a)   Page 6, line 9, and page 10, line 21, "MDI-Cal" should  
               be changed to  "Medi-Cal"
             b)   Page 3, line 20, and page 7, line 30, "maintain" should  
               be changed to "keep"

           






          SUPPORT AND OPPOSITION  :
          Support:  Autism Speaks (cosponsor)
                    Center for Autism and Related Disorders (cosponsor)
                    Special Needs Network (cosponsor)
                    Autism Deserves Equal Coverage Foundation (cosponsor)
                    California School Employees Association, AFL-CIO
                    National Association of Social Workers - California  
                    Chapter
          
          Oppose:   California Association of Health Plans
                    California Chamber of Commerce
             

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