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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