BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1098 (Cannella) - Medi-Cal: dental services: advisory group
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|Version: April 21, 2016 |Policy Vote: HEALTH 9 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 27, 2016 |Consultant: Brendan McCarthy |
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Bill
Summary: SB 1098 would establish a Denti-Cal Advisory Group
within the Department of Health Care Services to study and
oversee the policies and priorities of the Denti-Cal program and
to provide assistance and advice to the Department, the
Legislature, and the Governor.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
Fiscal
Impact:
Ongoing costs, likely between $50,000 and $150,000 per year to
provide staff support to the Advisory Group (General Fund and
federal funds). It is likely that the Advisory Group will need
staff support to assist it with gathering information,
interpreting data and program requirements, and formulating
recommendations.
SB 1098 (Cannella) Page 1 of
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Unknown additional costs to provide Denti-Cal benefits to
children, to the extent that the Advisory Group is successful
in improving the utilization of Denti-Cal services (General
Fund and federal funds). Currently, the state spends about
$1.2 billion per year on Denti-Cal for adults and children.
Estimates of the utilization rate for children vary, but are
all well below the goal set in the bill of 60% annual
utilization. On its own, the Advisory Group would not have the
authority to raise reimbursement rates or streamline program
requirements. However, to the extent that the Advisory Group
is able to work with the Department to take actions that
improve access to services, there will be increased
utilization costs. For every 5% increase in annual utilization
by children, the cost would be about $35 million per year.
Unknown potential cost-savings due to increased use of
preventative dental services (General Fund and federal funds).
Regular dental care for children is likely to prevent dental
conditions, such as cavities, from becoming more serious
health problems that require more costly interventions later.
To the extent that the bill results in increased utilization
of preventative dental services by children in Medi-Cal, there
are likely to be reduced costs for more serious dental
services. Whether those avoided costs are greater than the
cost of providing greater access to preventative services is
unknown.
Committee
Amendments: Clarify that the Advisory Group does not have
oversight authority over Department actions.
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