BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          1095 (Pan)


          As Amended  August 15, 2016


          Majority vote


          SENATE VOTE:  39-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |17-0 |Wood, Maienschein,    |                    |
          |                |     |Bonilla, Burke,       |                    |
          |                |     |Campos, Chiu, Gomez,  |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Lackey, Nazarian,     |                    |
          |                |     |Patterson,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Ridley-Thomas,        |                    |
          |                |     |Rodriguez, Santiago,  |                    |
          |                |     |Steinorth, Thurmond,  |                    |
          |                |     |Waldron               |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |








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          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |McCarty               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Requires the Department of Public Health (DPH) to  
          expand statewide screening of newborns to include screening for  
          any disease that is detectable in blood samples within two years  
          of the disease being adopted by the federal Recommended Uniform  
          Screening Panel (RUSP).
          EXISTING LAW: 


          1)Requires DPH to establish a genetic disease unit to coordinate  
            all DPH programs in the area of genetic disease that will  
            promote a statewide program of information, testing, and  
            counseling services and to have the responsibility of  
            designating tests and regulations to be used in executing this  
            program and to have the responsibility of designating tests  
            and regulations to be used in executing the California Newborn  
            Screening Program (CNSP). 
          2)Requires DPH to evaluate and prepare recommendations on the  
            implementation of tests for the detection of hereditary and  
            congenital diseases, including, but not limited to,  
            biotinidase deficiency and cystic fibrosis.  Requires DPH to  
            also evaluate and prepare recommendations on the availability  
            and effectiveness of preventative follow-up interventions,  
            including the use of specialized medically necessary dietary  
            products.  


          3)Requires statewide screening of newborns to include tandem  








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            mass spectrometry screening for fatty acid oxidation, amino  
            acid, and organic acid disorders and congenital adrenal  
            hyperplasia.  Requires screening of newborns to include  
            screening for severe combined immunodeficiency, as soon as  
            possible. 


          4)Requires DPH to expand statewide screening of newborns to  
            include screening for adrenoleukodystrophy (ALD) as soon as  
            ALD is adopted by the federal RUSP.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          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  
            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,  
            covers 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 (General  
            Fund/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).   








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            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). 


          COMMENTS:  According to the author, newborn screening for rare  
          diseases is a critical, cost-effective public health  
          intervention, as diagnosing diseases at birth leads to earlier  
          medical intervention.  In turn, early treatment saves and  
          improves children's and families' lives and reduces medical  
          costs by eliminating or ameliorating the devastating  
          consequences of rare and treatable diseases.  California's  
          current approach to reviewing and approving screening for  
          additional diseases has created a lag behind current medical  
          recommendations.  A study in the journal Pediatrics found that  
          California saves $9.32 in health care costs for every dollar  
          spent on newborn screening.


          In 1966 California began its CNSP with the testing of  
          phenylketonuria.  Since its creation, the CNSP has been expanded  
          several times as new discoveries are made and tests developed  
          and now screens for more than 70 disorders.  Diseases have been  
          continually added through regulation and legislation.  The last  
          disease added by statute was ALD in 2014.  ALD was added to the  
          RUSP in February of 2016.


          The California Hospital Association states that the bill  
          provides a forward thinking approach to properly and  
          thoughtfully expanding newborn screening by providing that  
          California screen for diseases that are detectable in blood  
          samples and listed on the RUSP as certified by the Health and  
          Human Services (HHS) Secretary.  The RUSP list is periodically  
          updated through a thorough, deliberative review process  








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          involving a committee of experts in newborn screening.  By  
          allowing California to take advantage of the work done by these  
          medical experts, we can remove the obstacles to needed testing  
          and minimize the suffering that comes from untreated diseases.


          The EveryLife Foundation for Rare Diseases (EveryLife) states  
          that the bill provides a much needed, practical, science-based  
          approach to improving public health for all of California's  
          Children.  This bill allows for the earliest diagnosis of  
          disease and access to potentially life-saving and life-altering  
          treatments for babies.  Early treatment is vital in ensuring the  
          best possible life-altering health outcomes for children.  In  
          many cases, early detection can avert costly and risky medical  
          procedures later in life.  A study in the journal Pediatrics  
          found that California saves $9.32 in health care costs for every  
          dollar spent on newborn screenings.  EveryLife states that this  
          bill will ensure that babies born in California, particularly  
          those that will be affected by debilitating and life-threatening  
          diseases, are diagnosed and treated at the earliest age possible  
          and without unconscionable delay.  This approach is critical for  
          improving health outcomes for children and providing the  
          brightest future for all babies born in California.


          The California Right to Life, Inc. argues that this bill does  
          not correct the issue of the limited ability to opt out of the  
          screening program for religious beliefs or practices and may  
          even bring discrimination against parents or guardians who do  
          opt out.


          DPH states that if it is required to expand the current Newborn  
          Screening program to include other diseases as soon as a disease  
          is adopted by the RUSP, it will need additional time to plan and  
          implement a quality screening program that addresses all of the  
          issues addressed in the public health feasibility and readiness  
          assessments provided to the Secretary of HHS as part of the  
          approval process for new RUSP diseases.








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          Analysis Prepared by:                                             
                          Paula Villescaz / HEALTH / (916) 319-2097  FN:  
          0004129