BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1098 (Cannella) - Medi-Cal: dental services: advisory group ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 21, 2016 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 27, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- 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 ? 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. -- END --