BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1095 (Pan) - Newborn screening program
          
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          |Version: February 17, 2016      |Policy Vote: HEALTH 9 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 9, 2016       |Consultant: Brendan McCarthy    |
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          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  







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            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  








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          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.


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