BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: SB 1034 --------------------------------------------------------------- |AUTHOR: |Mitchell | |---------------+-----------------------------------------------| |VERSION: |February 12, 2016 | --------------------------------------------------------------- --------------------------------------------------------------- |HEARING DATE: |April 20, 2016 | | | --------------------------------------------------------------- --------------------------------------------------------------- |CONSULTANT: |Teri Boughton | --------------------------------------------------------------- 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 SB 1034 (Mitchell) Page 2 of ? 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 SB 1034 (Mitchell) Page 3 of ? 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. SB 1034 (Mitchell) Page 4 of ? 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 SB 1034 (Mitchell) Page 5 of ? 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 SB 1034 (Mitchell) Page 6 of ? 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 SB 1034 (Mitchell) Page 7 of ? 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 SB 1034 (Mitchell) Page 8 of ? 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 SB 1034 (Mitchell) Page 9 of ? 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. SB 1034 (Mitchell) Page 10 of ? 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 -- END --