BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1034| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1034 Author: Mitchell (D) Amended: 5/31/16 Vote: 21 SENATE HEALTH COMMITTEE: 6-0, 4/20/16 AYES: Hernandez, Hall, Mitchell, Monning, Pan, Roth NO VOTE RECORDED: Nguyen, Nielsen, Wolk SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen SUBJECT: Health care coverage: autism SOURCE: Autism Deserves Equal Coverage Foundation Autism Speaks Center for Autism and Related Disorders Special Needs Network DIGEST: This bill 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 prohibiting denials for medically necessary behavioral health treatment based on the setting, location or time of the treatment. ANALYSIS: Existing law: 1)Establishes the Department of Managed Health Care (DMHC) to regulate health plans under the Knox-Keene Health Care SB 1034 Page 2 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 10 ACA mandated benefits. 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. 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)Sunsets the provisions described in 3) on January 1, 2017. This bill: 1)Revises the definition of "behavioral health treatment" to include other evidence-based behavior intervention programs that keep 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 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 SB 1034 Page 3 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 when treatment is no longer appropriate and continued therapy is not necessary to keep function or prevent deterioration. 6)Prohibits the setting, location or time of the treatment from being used as a reason to deny medically necessary behavioral health treatment. Prohibits this provision from being construed to require coverage for services that are included in a patient's individualized education program. 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. Comments 1) Author's statement. According to the author, this bill ensures 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 SB 1034 Page 4 to provide behavioral health treatments to children with autism. 2)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 is be subject to SB 1034. Approximately, 94% of enrollees with health insurance subject to SB 1034 gain benefit coverage; b) Essential health benefits. For two reasons, SB 1034 does 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 alters 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 creates 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 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 SB 1034 Page 5 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 increases 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. 1)Concern. The Association of Regional Center Agencies (ARCA) indicates that this bill does not specify how many staff members can be supervised under one professional certification, which could unintentionally diminish the quality of clinical supervision. ARCA also raises concerns that by expanding the treatment settings and limiting parent participation, skills developed through treatment would not be transferable to the home or community environment and would limit effectiveness of treatment. Fiscal Impact: Appropriation: No Fiscal Com.: Yes Local:Yes SB 1034 Page 6 According to the Senate Appropriations Committee: 1)One-time costs of about $50,000 and ongoing costs of $15,000 per year to review health plan filings for compliance with the requirements of the bill and to undertake any necessary enforcement actions by DMHC (Managed Care Fund). 2)Likely costs of less than $100,000 per year for review of health insurance plan filings and enforcement actions by CDI (Insurance Fund). 3)No state costs are anticipated due to the elimination of the existing sunset on the benefit mandate or the extension of the existing benefit mandate to CalPERS coverage. While existing law specifically mandates coverage for behavioral health treatment, separate federal and state mental health parity requirements and requirements for the provision of EHBs implicitly require coverage for behavioral health treatment for autism and related disorders. Therefore, elimination of the statutory sunset and extension of the mandate to CalPERS health coverage will not increase state costs, because CalPERS plans would have to provide coverage for these services even without a specific benefit mandate. Nor will eliminating the sunset require the state to pay for the costs to subsidize coverage for behavioral health treatment coverage for subsidized Covered California plans. 4)Ongoing costs of about $300,000 per year due to a minor increase in health care premiums to CalPERS due to the expansion of the existing benefit mandate to require coverage to "keep" the functioning of eligible individuals (General Fund, special funds, and local funds). About half of the above costs would accrue to the state and half to local governments. 5)Uncertain impact on CalPERS health care costs from other changes to the existing benefit mandate in the bill (General Fund, special funds, and local funds). According to CHBRP, there are several changes to the existing benefit mandate that could increase utilization of services, but that CHBRP was SB 1034 Page 7 unable to quantify. To the extent that those factors do increase utilization, premium costs to CalPERS would increase. 6)No increased costs for the Medi-Cal program are anticipated due to the bill. Current law exempts Medi-Cal managed care plans from the existing benefit mandate. (However, federal guidance requires coverage for behavioral health treatment for Medi-Cal enrollees with autism or related disorders. The state has just begun providing this benefit in Medi-Cal and is in the process of transitioning Medi-Cal enrollee previously served by regional centers to having coverage provided by Medi-Cal.) This bill does not eliminate the existing Medi-Cal exemption. SUPPORT: (Verified5/27/16) Autism Deserves Equal Coverage Foundation (co-source) Autism Speaks (co-source) Center for Autism and Related Disorders (co-source) Special Needs Network (co-source) A Change in Trajectory, ACT Autism Behavior Services Inc. Autism Business Association Autism Learning Partners Autism Spectrum Interventions Bloom Behavioral Health California Psychcare California School Employees Association, AFL-CIO Disability Rights California Hope Autism Therapies Inizio Interventions Inc. National Association of Social Workers- California Chapter Star of California Behavioral and Psychological Services OPPOSITION: (Verified5/27/16) SB 1034 Page 8 California Association of Health Plans California Chamber of Commerce ARGUMENTS IN SUPPORT: At the passage of SB 946 (Steinberg, Chapter 650, Statutes of 2011), which established the coverage mandate for behavioral health treatment for pervasive developmental disorder and autism, according to Autism Speaks, there were a number of outstanding questions with regards to mandated benefits, the ACA, and the State's fiscal responsibility. The sunset provides an opportunity to revisit the issue. The federal government has since provided guidance on EHB selection and implementation of the ACA, and behavioral health treatments for children with autism are covered as an EHB. 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 health plans and insurers. Proponents indicate that frequent reviews delay treatment and can harm the progress of the child. Some health plans and insurers will not approve treatment that is provided at a school, church or other community settings 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 to be 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. ARGUMENTS IN 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 SB 1034 Page 9 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. The California Association of Health Plans believes the next step in continuing these services is to license the providers of autism care rather than expand the nature of the existing requirement. Prepared by:Teri Boughton / HEALTH / (916) 651-4111 5/31/16 20:45:29 **** END ****