BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1095 (Pan) - Newborn screening program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: February 17, 2016 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 9, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1095 would require the Department of Public Health to expand the existing newborn screening program to include any condition that has been adopted by the federal Recommended Uniform Screening Panel. Fiscal Impact: One-time costs of $2.4 million and ongoing costs of $4.3 million per year to screen for two diseases (MPS-1 and Pompe disease) that have already been approved for inclusion in the federal Recommended Uniform Screening Panel (Genetic Disease Testing Fund). The ongoing costs above would cover initial screening tests, follow up tests for positive results, and initial case management for confirmed diagnoses. Adding these two conditions would require an increase in the existing $113 fee charged for screening by about $9. Most health insurance, including Medi-Cal, cover the costs of the screening fee. Ongoing costs of about $2.5 million per year for coverage of the increased screening fee by the Medi-Cal program (General SB 1095 (Pan) Page 1 of ? Fund and federal funds). Medi-Cal covers the cost of the screening exam and Medi-Cal pays for about 50% of the births in the state. Unknown future costs to include additional diseases in the state's newborn screening program as they are added to the federal Recommended Uniform Screening Panel (Genetic Disease Testing Fund). The costs to include additional diseases will vary depending on the specific costs for testing of that disease. In recent years, anticipated costs to include additional diseases in the state's newborn screening program have generally been in the low millions per condition, per year. Likely long-term savings due to improved clinical outcomes from early testing and treatment (various funds). When considering whether to include additional diseases in the Recommended Uniform Screening Panel, the federal advisory committee considers issues such as the reliability of the screening test, the availability of treatments, the benefits of early diagnosis, and the anticipated impact on health outcomes from additional screening. Specific information about the long-term impacts on health outcomes or avoided health care costs are often not available, because the diseases that are considered for inclusion are rare and treatments are evolving rapidly. However, new diseases are added when the advisory panel finds that there are benefits from screening, primarily the ability to avoid long-term health consequences with early intervention. Therefore, it is reasonable to believe that including additional diseases that have been approved by the federal government will reduce state health care spending in the long-run. Background: The Department of Public Health operates the Genetic Disease Testing Program, which screens all newborns in the state for more than 70 inherited conditions. Both the federal government and the Department have advisory committees that make recommendations on new conditions that should be added to the federal screening guidelines and the state screening program. When a recommendation for including a new disease in newborn screening is made by the federal advisory committee, that recommendation is sent to the federal Secretary of Health Human Services. If the Secretary approves the recommendation, that SB 1095 (Pan) Page 2 of ? disease is added to the federal Recommended Uniform Screening Panel. States are not obligated to follow the Recommended Uniform Screening Panel, but most states generally do so. The California Newborn Screening Program tests for all of the diseases on the Recommended Uniform Screening Panel, except for two conditions added in the last few years, MPS-1 and Pompe disease. The Genetic Disease Testing Program is funded by a fee assessed by the Department. Current law requires health plans and health insurers (including the state's Medi-Cal program) to cover the cost of the fee. The current fee for newborn screening is set at $112.70. Proposed Law: SB 1095 would require the Department of Public Health to expand the existing newborn screening program to include any condition that has been adopted by the federal Recommended Uniform Screening Panel. Related Legislation: AB 170 (Gatto) would require specific information to be provided by the Department of Public Health to parents regarding the Newborn Screening Program and would give parents more oversight over how collected samples are handled. That bill is pending in the Senate Health Committee. AB 1559 (Pan, Statutes of 2015) added ALD to the Newborn Screening Program, upon federal inclusion in the Recommended Uniform Screening Panel. -- END --