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