BILL ANALYSIS Ó SB 1095 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1095 (Pan) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Health |Vote:|17 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the California Department of Public Health (CDPH) to expand genetic disease screening of newborns to include any additional disease adopted as part of the federal Recommended Uniform Screening Panel (federal panel), as soon as the disease is adopted. FISCAL EFFECT: 1)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 SB 1095 Page 2 disease) that have already been approved for inclusion in the federal panel (Genetic Disease Testing Fund). The ongoing costs would cover initial screening tests, follow-up tests for positive results, and initial case management for confirmed diagnoses. The Genetic Disease Screening Program is fee-supported; most health insurance, including Medi-Cal, cover the screening fee. The fee has increased pursuant to the 2016-17 Budget Act, and is currently $130.25. Adding these two conditions would require an additional fee increase of about $9. 2)Ongoing costs of over $2 million per year for coverage of the increased screening fee by the Medi-Cal program (GF/federal). Medi-Cal covers the cost of the screening exam and Medi-Cal pays for roughly 50% of the births in the state. 3)Unknown future costs to expand newborn screening program to add screening tests for new diseases as they are adopted as part of the federal panel (Genetic Disease Testing Fund). Costs vary by disease; recent additions have generally cost in the low millions per condition, per year. Screening fees will be adjusted to support the additional projected expenditures. 4)Potential long-term savings due to improved clinical outcomes from early testing and treatment (various funds). When considering whether to include additional diseases in the federal panel, a 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 SB 1095 Page 3 that there are benefits from screening, primarily the ability to avoid long-term health consequences with early intervention. Although it is not certain whether additional screening and treatment is actually cost-saving when considering the screening costs, it is reasonable to project that early diagnosis made possible by screening for new diseases will reduce health care costs in specific cases. COMMENTS: 1)Purpose. This bill is intended to align California's Newborn Screening Program with best practices nationally, as defined by a federal advisory body. The author explains California's current approach to reviewing and approving screening for additional diseases has created a lag behind current medical recommendations. Diseases added to the Recommended Universal Screening Panel meet a number of strict criteria following a robust, science-based study by experts. The author suggests adopting new tests without delay into California's program is a scientific, rather than political, solution to screening newborns. 2)Background. State genetic disease screening programs test babies for a number of rare and serious genetic conditions that are often otherwise undetectable. The goal of the program is to identify babies with these disorders and begin treatment as early as possible. Hospitals collect small blood spots on special paper by pricking a baby's heel, and the specimens are sent to a laboratory for testing. In California, the state laboratory within CDPH tracks each specimen, arranges for testing of newborn blood spots through contract laboratories, handles more complex confirmatory testing, and provides follow-up services as necessary. The SB 1095 Page 4 program currently tests for over 80 different genetic and congenital disorders. Testing is mandatory but parents are allowed to opt out for religious reasons. Nearly all babies are screened through the program. A federal expert committee, the Advisory Committee on Heritable Disorders in Newborns and Children, advises the Secretary of the U.S. Department of Health and Human Services on the most appropriate application of universal newborn screening tests, technologies, policies, guidelines, and standards. The Committee recommends every newborn screening program screen for certain core disorders and secondary disorders. Since these are recommendations, not mandates, screening protocols vary by state. CDPH has the authority to add diseases administratively, but has not done so. Instead, California has generally added new screening tests through disease-specific legislation. This bill would obviate the need for disease-specific legislation and keep California's panel consistent with federal recommendations. It would add a disease as soon as it is recommended by the Committee, which is after a rigorous expert review process. 3)Support. This bill is supported by a number of public health, children's health, health care provider, and disease advocacy groups. It is sponsored by EveryLife Foundation for Rare Diseases, a nonprofit that encourages biotech innovation for rare disease treatments. 4)CDPH Opposition. This bill would add a disease as soon as the disease is recommended by the Committee for inclusion in the federal panel. CDPH is opposed to the bill unless amended to recognize the required implementation time when a new disease is added. Staff notes it appears reasonable to recognize some implementation time, in order to ensure the state does not incur unnecessary costs associated with attempting to SB 1095 Page 5 "immediately" implement each new test, as well as to ensure quality control. Analysis Prepared by:Lisa Murawski / APPR. / (916) 319-2081